Farmers urge FM Nirmala Sitharaman to introduce GST Exemptions on Agricultural Inputs
Among the requests made, the Farmers called for higher income support via the PM Kisan income support scheme
The Finance Minister recently convened a meeting with Farmers’ Associations and other stakeholders in the Agricultural Sector while accepting suggestions and inputs for the devising of the to-be-proposed Union Budget 2025-26. Among other demands, the attendees called for the doubling of the payout in PM Kisan income support scheme from Rs.6,000 to Rs.12,000 per year, review of the...
The Finance Minister recently convened a meeting with Farmers’ Associations and other stakeholders in the Agricultural Sector while accepting suggestions and inputs for the devising of the to-be-proposed Union Budget 2025-26.
Among other demands, the attendees called for the doubling of the payout in PM Kisan income support scheme from Rs.6,000 to Rs.12,000 per year, review of the in-force minimum support price ( MSP ) regime, cheaper long-term credit options and reduced taxes.
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The meeting with members of the Agricultural Community was one of multiple meetings convened by the Finance Minister along with other Governmental dignitaries in various industries to understand the difficulties faced by them and to receive suggestions and inputs from them to formulate an efficient Budget to be tabled next year.
Among the multiple requests and concerns raised, some of the chief concerts were raised by Bharat Krishak Samaj chairman Ajay Vir Jakhar, proposing uniform taxation in agricultural markets, while emphasizing its potential to enhance governance, boost efficiency, and reduce food inflation and price volatility.
Meanwhile, Badri Narayan Choudhary, general secretary of the RSS-affiliated Bharatiya Kisan Sangh, called for increasing benefits under the PM-Kisan scheme. Dharmendra Malik, national spokesperson of the Bharatiya Kisan Union (apolitical), urged the government to exempt agricultural equipment, animal feed, fertilizers, seeds, and medicines from GST. Additionally, Jakhar recommended a thorough evaluation of government schemes aimed at supporting farmers.
India has multiple mechanisms in place to support farmers and the agricultural sector, employing several tax exemptions and legal benefits aimed at supporting their livelihoods while promoting agricultural growth. Income from agriculture is exempt from income tax under Section 10(1) of the Income Tax Act. Additionally, agricultural produce is generally exempt from Goods and Services Tax ( GST ) when sold directly by farmers. Key inputs like seeds, fertilizers, and certain equipment also attract reduced GST rates or are wholly exempt.
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Further, farmers benefit from Government Schemes such as the Minimum Support Price (MSP) to ensure fair compensation for crops while also being entitled to various subsidies on fertilizers, irrigation, and power. Legal frameworks such as the Essential Commodities Act regulate supply and pricing to protect farmer interests. The government also provides access to subsidized credit under the Kisan Credit Card (KCC) scheme and insurance coverage through the Pradhan Mantri Fasal Bima Yojana (PMFBY).
Farmers and stakeholders expressed hope that their concerns presented to Finance Minister Nirmala Sitharaman would be adeptly considered in the upcoming Union Budget 2025-26, paving way for more inclusive and supportive policies for the agricultural sector.
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