The Bharatiya Kisan Union (BKU) has submitted a comprehensive set of demands to Finance Minister Nirmala Sitharaman during a pre-Budget consultation meeting on Saturday. The organization emphasized tax exemptions, improved support mechanisms, and structural changes in the agricultural sector to address long-standing issues and enhance sustainability.
Key Demands from BKU:
- Exclusion of Key Agricultural Inputs from GST:
- BKU requested that agricultural equipment, fertilizers, seeds, medicines, animal feed, and poultry feed be exempted from GST.
- They argued that historically, under the sales tax regime, these items were tax-free for farmers.
- Reforming the MSP Formula:
- BKU proposed that all risks be considered in the calculation of the Minimum Support Price (MSP), including post-harvest costs, price volatility, natural disasters, and export restrictions.
- They suggested banning imports of agricultural products at prices below the MSP and limiting the imposition of Minimum Export Price (MEP) to emergencies.
- Inclusion of key fruits, vegetables, milk, and honey under MSP was also recommended.
- Pradhan Mantri Fasal Bima Yojana (Crop Insurance):
- Farmers urged the government to make the insurance premium zero for small farmers under the scheme.
- Enhancing PM-KISAN Benefits:
- The union demanded that the annual installment for the PM-Kisan Samman Nidhi scheme be increased from ₹6,000 to ₹12,000.
- Concessional Agricultural Loans:
- BKU suggested agricultural loans, including those for equipment, be provided at 1% interest rates, particularly for farmers with a track record of timely repayments.
- Structural Reforms in Agriculture:
- They called for agriculture to be included in the Concurrent List of the Constitution and proposed the creation of an Indian Agricultural Service (IAS) cadre, akin to the Indian Administrative Service.
- Strengthening Agricultural Markets:
- An increase in the number of agricultural markets was recommended, along with facilities for grading, packaging, and branding to enable farmers to command better prices.
Government’s Response
Finance Minister Sitharaman welcomed the inputs and assured participants that their suggestions would be carefully evaluated. The consultation is part of the formal Budget preparation process, which includes input from diverse sectors of the economy.
Upcoming Union Budget 2025-26:
The Union Budget 2025-26, slated to be tabled on February 1, 2025, will be Finance Minister Sitharaman’s eighth Budget. As the government enters the latter half of its term, this Budget is anticipated to provide a roadmap for sustainable agricultural development, ensuring that the sector receives due attention.