Farmers urge Finance Minister to enhance PM Kisan Nidhi to ₹12,000 at pre-budget meeting

Union Finance Minister Nirmala Sitharaman meets farmers and industries to discuss budget concerns, including income support and tax sops.

Union Finance Minister Nirmala Sitharaman met representatives of farmers’ associations, agriculture-based industries and agricultural economists in New Delhi on Saturday (December 7, 2024) as part of her customary pre-budget consultations with stakeholders from various sectors. Farmers asked her to double the income support under PM Kisan Samman Nidhi to ₹12,000 and reduce costs on input materials while industries sought tax sops and subsidies for expanding their network of infrastructure.

At the meeting, Samyukt Kisan Morcha - Non Political (SKM-NP) leader Dharmendra Malik said the Centre had neglected the agriculture sector for long, and sought steps be taken to ensure timely availability of seeds, fertilisers, pesticides, power and labour. Mr. Malik said the minimum support price arrived at under the present calculation system does not even cover input costs, and urged the Centre to implement the formula given in M.S. Swaminathan Commission to calculate MSP. He also urged the Centre to bring more crops within the ambit of MSP, and demanded that the PM Kisan Samman Nidhi assistance be increased to ₹12,000 a year from ₹6,000 a year given at present.

Sangh Parivar-backed Bharatiya Kisan Sangh’s Badri Narayan Chowdhury said, in a memorandum, that the Kisan Nidhi amount has not been increased in the last six years. He asked the Centre to provide the facility of input tax credit in the Goods and Service Tax (GST) to farmers too.He demanded direct benefit transfer of fertiliser subsidy to farmers instead of providing it to fertiliser companies. The Kisan Sangh also supported the policy on natural farming and asked the government to make use of the livestock in the country to boost natural farming.

Farmers’ Forum chairman Ajay Vir Jakhar said the most problematic area is perishable fruits and vegetables. “Uniform taxation in agricultural markets across India (like GST) will pave way for improved governance, systems efficiency, mitigation of food inflation and price fluctuations, ignite entrepreneurial spirits to drive competition to benefit farmers and consumers alike,” he said.

Industries demanded GST exemption on agricultural machinery, fertilisers, seeds, and medicines. PHD Chamber of Commerce and Industry asked the Centre to reduce GST on pesticide from 18% to 5%. Its chairman (agribusiness committee) R.G. Agarwal also demanded that the Centre curb the sale of smuggled and spurious pesticides.