Farm sector looks to Jaitley for relief

The beleaguered farm sector that faced the maximum brunt of the demonetisation is looking forward to some kind of succour from Finance Minister Arun Jaitley’s fourth Budget.

Though a near-normal widespread monsoon across most parts of the country, except the Peninsular region, after two successive drought years, raised expectations of a bumper output, the demonetisation induced cash crunch that coincided with the kharif season harvest, hurt the farm incomes, aggravating the rural distress.

The government may hike the agriculture credit target and focus on Pradhan Mantri Krishi Sinchai Yojana to bring in more land under irrigation. Besides, an announcement pertaining to bringing in more agriculture markets under the e-market platform, the expansion of soil health card scheme, among others, are widely expected. Farmer organisations want the Modi government to spell out a clear strategy to double income of farmers in three years, provide income guarantee, bring in a more effective regime for support price, increase farm allocation and compensate farmers for losses from demonetisation.

Farmers associated with Jai Kisan Andolan, a public movement for farmers rights by Yogendra Yadav-led Swaraj Abhiyan, and allied farmer organisations and unions from across the country, have put together a list of demands from the sector. These include setting up a permanent and statutory National Farmers’ Income Commission for income assessment of farm households and implementing the income guarantee and a full-fledged income security mechanism from 2018-19. Jai Kisan Andolan plans to hold a Kisan Sansad (Farmers’ Parliament) at Jantar Mantar, to evaluate the Budget on Wednesday, which is likely to be attended by around 500 farmers.

The list of expectations, which Yadav said was compiled after discussions with a number of farmer organisations from different States, also includes provisions for a price stabilisation fund for plantation crops, compensation for losses from demonetisation and resulting crashing of prices of farm produce, and higher allocation for irrigation and the entire farm sector.

Stressing on the fact that farmers often get much lower prices from the open market than the prevailing Minimum Support Price (MSP), Jai Kisan Andolan has demanded that there should be price deficiency payments to make the existing support price effective beyond procurement by the government. It has also called for a market intervention scheme for perishables and those products not covered under price support schemes.

Meanwhile, the All India Gems and Jewellery Trade Federation (GJF) has recommended the GST at 1.25 per cent for the gems and jewellery sector. It has suggested that the mandatory PAN card limit be increased to ₹5 lakh and above, while seeking a reduction in the import duty on gold from 10 per cent to at least 5 per cent, according to Nitin Khandelwal, chairman, GJF.

The solvent extraction industry wants the long-pending demand of increasing the difference in customs duty between imported crude edible oils and refined edible oils, to be addressed. The demand is aimed at encouraging the Make in India mission, while a higher duty differential would help the domestic refiners come out of the crisis, according to the Solvent Extractors Association of India.

The plantation sector wants the concessional import tariff on the latest technology and machineries to be extended, along with the full excise and countervailing duty exemption. The United Planters’ Association of Southern India has made a case for removing ambiguity around the deductibility of re-planting expenses for tea, coffee and rubber plantations, for their income tax purposes. UPASI has suggested that re-planting expenses be allowed as a deduction from the total income till the rules are appropriately amended.