Farmers Push for Financial Relief, Market Reforms Ahead of Budget
In a robust pre-budget consultation with Finance Minister Nirmala Sitharaman, representatives from farmer groups and agricultural stakeholders laid out a comprehensive plan for reinforcing India’s agricultural sector. The two-hour meeting focused on addressing key challenges, with primary demands centered around financial relief measures, market reforms, and strategic investments.
Calls for Cheaper Loans, Doubled Income Support
Bharat Krishak Samaj Chairman Ajay Vir Jakhar underscored the urgency for targeted interventions to bolster agricultural productivity and enhance farmer welfare. Among the most pressing demands was reducing interest rates on agricultural loans to as low as 1%, providing much-needed relief for farmers burdened by high borrowing costs.
Another critical request was doubling the annual instalment of the PM-KISAN income support scheme from ₹6,000 to ₹12,000, injecting direct financial assistance into farmers’ hands.
Zero-Premium Crop Insurance, GST Reforms Proposed
Farmers’ bodies strongly advocated for providing zero-premium crop insurance for small farmers under the Pradhan Mantri Fasal Bima Yojana, mitigating risks associated with crop failures and safeguarding livelihoods.
Taxation reforms emerged as a crucial component of the proposals. Stakeholders urged the government to exempt GST on essential agricultural machinery, fertilizers, seeds, and medicines, making these vital inputs more accessible and cost-effective.
PHD Chambers of Commerce and Industry formally requested a reduction in the GST on pesticides from 18% to 5%. Notably, they also stressed the need to curb the sale of smuggled and counterfeit pesticides while ensuring data protection for new molecular developments.
Strategic Investments for Enhanced Productivity
Adding to the long-term vision, Jakhar proposed a targeted investment strategy of ₹1,000 crore annually for eight years, focusing on specific crops like chickpeas, soybean, and mustard. This approach aims to strategically enhance crop yields, reduce dependency on imports, and improve national nutritional security, he explained after the meeting.
Overhauling Minimum Support Prices, Boosting Market Infrastructure
Bhartiya Kisan Union (BKU) Speaker Dharmendra Malik called for a comprehensive review of the Minimum Support Price (MSP) mechanism, advocating for a more inclusive calculation that factors in land rent, farm wages, and post-harvest expenses.
He also emphasized the need for improved market infrastructure, urging the government to ensure transparency by displaying agricultural machinery prices on company websites. Malik further advocated for widening the scope of MSP coverage beyond 23 commodities and implementing safeguards that disallow imports below MSP levels, protecting farmers from unfair market competition. He recommended fixing minimum export prices only during emergencies to stabilize domestic prices.
Constitutional Reforms for a Stronger Agricultural Sector
Ambitious proposals included constitutional reforms, such as including agriculture in the Concurrent List to allow for greater collaborative governance.
Malik championed establishing a central Indian Agricultural Service, akin to the civil services, to attract and retain qualified professionals dedicated to bolstering the agricultural sector.
The meeting saw participation from senior officials from the finance and agriculture ministries, alongside representatives from farmer producer companies, agricultural associations, and corporate entities.
Exuding confidence in the government
s responsiveness to the proposed solutions, agriculturists expressed their commitment to collaborative efforts that will ensure a prosperous and sustainable future for India’s vital agricultural sector.
What is the long-term vision proposed for the agricultural sector?
## Farmers Hope for Relief in Upcoming Budget
**Interviewer:** Joining us today is [Name of Alex Reed], [Alex Reed’s Affiliation], who was present in the recent pre-budget consultation with Finance Minister Nirmala Sitharaman. Welcome to the show.
**Alex Reed:** Thank you for having me.
**Interviewer:** So, the farmers presented a comprehensive plan detailing their needs ahead of the budget. Can you tell us more about the key areas of focus?
**Alex Reed:** Absolutely. At the heart of it, farmers are asking for three key things: immediate financial relief, impactful market reforms, and strategic long-term investments.
**Interviewer:** Can you elaborate on these demands?
**Alex Reed:** Certainly. Farmers are struggling with high borrowing costs, so reducing interest rates on agricultural loans to as low as 1% is crucial for their survival. They’ve also requested a doubling of the PM-KISAN income support to ₹12,000, providing a much-needed safety net.
Additionally, safeguards against crop failure are essential. Farmers are calling for zero-premium crop insurance under the Pradhan Mantri Fasal Bima Yojana for small farmers. They also want tax relief – exemptions on GST for crucial agricultural inputs like machinery, fertilizers, and seeds.
**Interviewer:** Interesting. What about the long-term vision for the sector?
**Alex Reed:** Bharat Krishak Samaj Chairman, Ajay Vir Jakhar, proposed a brilliant strategy of investing ₹1,000 crore annually for eight years in key crops like chickpeas, soybean, and mustard. This focused approach aims to boost yields and strengthen food security.
**Interviewer:** The pre-budget consultation was described as “robust.” Was there a sense of optimism?
**Alex Reed:** There’s definitely a sense of urgency and hope. Farmers are putting forward concrete, actionable solutions. The government listened intently, so we’re hopeful they will truly consider these proposals and prioritize the crucial needs of our agricultural sector in the upcoming budget.
**Interviewer:** Thank you for sharing your insights, Alex Reed. This is definitely a crucial moment for India’s farmers and the nation’s food security.
