The plantation sector has given its thumbs down to the Union Budget, especially on account of the lower allocation of funds to various commodity boards.

Highly placed sources in the sector told BusinessLine that several recommendations of various commodity boards such as micro irrigation support, soil fertility management support, export subsidy for tea, etc, have not found mention in the Budget speech of the Finance Minister.

The commodity boards such as tea, coffee, rubber, spices, etc, have to satisfy themselves with a minimal increase in funds in the next financial year, which would be insufficient for them after meeting the liability of the 7th Pay Commission recommendations. “With these meagre funds, it will be difficult for each sector to introduce any innovative schemes to enhance production, productivity as well as value addition. The government seems to be staying away from shouldering its responsibility in the commodity boards”, the sources said.

However, the reduction in corporate tax for small and medium enterprises with below ₹50 crore turnover from 30 to 25 per cent will benefit a majority of plantation companies in South India as most of them fall in this category.

Related Topics