PLI in agrochemicals, cut in GST on farm inputs among major expectations from Budget bl-premium-article-image

Prabhudatta Mishra Updated - July 21, 2024 at 10:15 PM.

Stakeholders in the farm sector, equally important in ensuring a robust harvest and better prices, are wondering if Finance Minister will announce something new or tweak some taxes/rates to prop up growth. businessline compiled some expectations from key players in the farm sector.

Anuj Kumbhat, founder and CEO of WRMS, a climate management company said, “We hope for robust governmental support to enhance climate resilience, climate change adaptation and disaster preparedness initiatives across various sectors. Increased investment, alongside strong policy support, regulations and incentives in advanced technologies such as IoT, AI and data analytics can revolutionise climate risk assessment and mitigation strategies in agriculture, infrastructure, urban planning, disaster management and insurance.”

Shailendra Singh Rao, founder of Creduce said, “We seek substantial funding for clean energy projects, including solar and wind. This should encompass investments in grid infrastructure, tax breaks, and subsidies. This will be a significant relief, particularly for the transition sector. In order to accomplish our immediate 2030 objective, we must concentrate on it.” Rao expects Sitharaman to announce budgetary support for battery storage solutions and said that the sector would be permanently crippled unless a substantial budget is allocated.

He also said that funding for planting of new trees and the restoration of degraded forests is urgently required and financial assistance to farmers and communities that adopt sustainable forestry methods should be provided. “Strategies to mitigate the effects of climate change, including droughts, floods, and heat waves, may be included in the budget,” he said.

Simon Wiebusch, president of Bayer (south Asia), said, “Government will use this year’s Budget to further its commitment towards farmer welfare through measures to enhance market linkages, increase access to quality inputs, promote digital technologies and accelerate creation of more farmer collectives (FPOs). Additionally, incentivising investment to support research in the sector, especially in regenerative agriculture and climate-smart practices can further catalyse sustainable growth, ensuring a steady rise in farmer incomes.

“India has the potential to emerge as a global player in the horticulture sector and hence fiscal policies aimed at creating the right infrastructure and ecosystem for horticulture will not only drive rural livelihoods but also bring in foreign exchange through exports.”

Raju Kapoor, director at FMC India, said, “With monsoon playing truant, agricultural growth has dipped from 4.7 per cent to 1.4 per cent, which further added to the rural distress. The Budget presents a crucial opportunity to address these concerns and propel the sector towards a brighter future. The government must prioritise agriculture and rural India, focusing on making farmers more resilient while simultaneously mitigating food inflation that disproportionately affects society’s underprivileged segments.”

R G Agarwal, chairman of Dhanuka group, said, “For a stronger agricultural sector and national food security, a PLI scheme for crop protection be announced and GST on pesticides should be reduced. This will empower farmers and make these crucial tools more affordable.”

SK Chaudhary, founder director of Safex Chemicals, said, “Given the increasing threat to crops because of adverse weather conditions arising from climate change, one looks forward to a robust rise in the R&D outlays so that both private and government institutes are motivated to develop climate-resistant crop varieties.”

Vimal Kumar, MD of Best Agrolife said: “Our heavy reliance on imports of agrochemicals from China highlights the need for implementing PLI benefits to boost local production.”

Sanjiv Kanwar, MD of Yara India, said: “We expect initiatives that will enhance credit and insurance frameworks for farmers and introduce an agriculture accelerator fund to spur growth. Tax parity for fertilizers and micronutrients, coupled with direct benefit transfers, will empower farmers to improve both the quantity and quality of their produce while minimizing environmental impact.”

Sanjay Borkar, CEO and co founder, FarmERP, said: “Agritech industry holds high expectations for significant advancements in new-age technologies and the integration of sustainability within agriculture. Tax incentives and subsidies for agritech start-ups will accelerate innovation and attract young entrepreneurs to the sector.”

Saroj Kumar Mahapatra, executive director at PRADAN (an NGO), said: “Prioritising enhanced irrigation infrastructure, especially in under-served regions like south Odisha and Chhattisgarh, is crucial. The budget should ensure timely and affordable credit, enforce Minimum Support Prices, and strengthen agricultural insurance. We urge the government to increase the number of women FPOs to create more lakhpati didis in next 2-3 years.”

Sat Kumar Tomer, founder and CEO of Satyukt Analytics, said: “We advocate for real-time integration into agricultural delivery, farm-scale credit assessments and crop insurance. Promoting precision agriculture, particularly in water optimisation and crop advisories, and incentivising agri-tech start-ups to collaborate with institutions like KVKs, will drive sustainable growth.”

Swarup Bose, founder and CEO at Celcius Logistics, “Budget can provide support to boost rural infrastructure, increase public and private investment and promote technological innovation in cold supply chain solutions.”

Published on July 21, 2024 16:45

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