Government Mulls GST Reimbursement, Boosting Agri-Research to Aid Farmers
As part of pre-budget consultations, farmer groups and experts stressed the need for urgent steps to alleviate farmers’ financial distress and curb food inflation. Reimbursing GST paid on farm inputs and reviving agricultural research were some key suggestions made to the Finance Ministry.
During a meeting chaired by Finance Minister Nirmala Sitharaman, representatives highlighted pressing issues faced by crop cultivators. To ease input costs, farmer organizations proposed that taxes paid on fertilizers and pesticides be refunded to agricultural producers. Experts also emphasized revamping agri-research, given past success in raising productivity – especially for rice exports now constrained by export curb amid food security worries.
Discussions centered around extending the PM-Kisan aid scheme to landless farm workers as well. Currently, it provides direct income support only to land-owning cultivators. Suggestions were also made to curb imports priced below domestic MSP rates and establish buffer stocks of key commodities to alleviate inflation during bumper and lean harvest cycles respectively.
If implemented, these measures could provide much needed relief for India’s farming community challenged by low earnings and rising input expenses. The Finance Ministry will carefully weigh these recommendations while formulating supportive policies for the agri-sector in the upcoming budget.
