Likely subsidy cuts irk agro tool-makers

Ludhiana: Agricultural implements and components’ manufacturers are irked after reports indicating reduction in subsidy available to the end consumers surfaced. Warning the Centre and the state government against making any such move, the businessmen claimed that their sales will tumble if the subsidy to the buyers is reduced.
Baldev Singh Amar, chairman of All India Agricultural Machinery Manufacturers’ Association said, “Presently, the farmers and agriculturists from general category are entitled to 40% subsidy, while women, SC and ST are entitled to 50% subsidy on purchase of agricultural machinery of certain type. It has come to our knowledge that the government is considering reducing the current rates of subsidy by about half, and working in this direction is going on. This is giving sleepless nights to manufacturers who are already facing huge recession due to drop in demand of agricultural machinery and components, and if the subsidy is reduced it will make matters worse for us.”
Industrialists said that the move will also affect the farmers.
Upkar Singh Ahuja, managing director of New Swan Agro said, “This move will also have huge negative impact on the agriculture sector, and the government should carefully study pros and cons of reducing the subsidy before abruptly going ahead with such a decision.”
A metal parts supplier for the agricultural machinery industry, Sukhraj Singh also showed concern over the move and said the supply-demand chain would also suffer if these factories reduce production, and hence the suppliers of raw material will also have to incur losses.