Union Budget Focus On agricultural Growth (26-Feb-2010)
The Finance Minister Pranab Mukherjee today presented the Union Budget 2010-11in Lok Sabha today and announced a slew of measures focusing on agriculture. The agriculture sectors got a major boost in the Union Budget 2010.
Regarding the agricultural growth, he said that the government will follow a four-pronged strategy, covering Agricultural production, Reduction in wastage of produce, Credit support to farmers and Impetus to the food processing sector.
Firstly, regarding the agricultural production, he said that Rs. 400 crore will be provided to extend the green revolution to the eastern region of India.
The eastern region comprises of Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa.
He also said that Rs. 300 crore will be provided to organize 60,000 ¡§pulses and oil seed villages¡¨ in rain-fed areas during 2010-11.
They will also provide an integrated intervention for water harvesting, watershed management and soil health in order to enhance the productivity of the dry land farming areas.
Meanwhile, Rs. 200 crore will be provided for sustaining the gains already made in the green revolution areas through conservation farming.
It involves concurrent attention to soil health, water conservation and preservation of biodiversity.
Secondly, regarding the reduction in wastage of produce, he said that the government will address the issue of opening up of retail trade.
It will help in reducing the considerable difference between farm gate, wholesale and retail prices.
He also said that the deficit in the storage capacity will be met through an ongoing scheme for private sector participation.
FCI will hire godowns from private parties for a guaranteed period of 7 years.
Thirdly, regarding the credit support to farmers, Pranab said that the banks have been consistently meeting the targets set for agriculture credit flow in the past few years.
For the year 2010-11, the target has been set at Rs.3, 75,000 crore.
Meanwhile, he said that in view of the recent drought in some States and the severe floods in some other parts of India, the period for repayment of the loan amount by farmers is extended by 6 months from December 31, 2009 to June 30, 2010.
This is under the Debt Waiver and Debt Relief Scheme for Farmers.
He also added that the incentive of additional 1% interest subvention to farmers who repay short-term crop loans as per schedule will be increased to 2% for 2010-11.
Finally, regarding the impetus to the food processing sector, he said that in addition to the ten mega food park projects already being set up, the Government has decided to set up five more such parks.
Æ’nMeanwhile, he said that the External Commercial Borrowings to be available for cold storage or cold room facility.
It will also be available for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat.
On the other hand, with regard to the fertilizer subsidy, he said that Nutrient Based Subsidy policy for the fertilizer sector has been approved by the government with effect from April 1, 2010.
Æ’n
However, he said that this will lead to an increase in agricultural productivity and better returns for the farmers and overtime reduce the volatility in demand for fertilizer subsidy and contain the subsidy bill.
Meanwhile, regarding the Agriculture & Related Sectors, he said that they will provide project import status with a concessional import duty of 5% for the setting up of mechanized handling systems and pallet racking systems in ¡¥mandis¡¦ or warehouses for food grains and sugar.
They will provide full exemption from service tax for the installation and commissioning of such equipment.
Meanwhile, he will also provide project import status at a concessional customs duty of 5% with full exemption from service tax to the initial setting up and expansion of
Cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sectors produce and processing units for such produce.
He will provide full exemption from customs duty to refrigeration units required for the manufacture of refrigerated vans or trucks.
He will also provide concessional customs duty of 5% to specified agricultural machinery
Not manufactured in India;
The government will also provide central excise exemption to specified equipment for preservation, storage and processing of agriculture and related sectors and exemption from service tax to the storage and warehousing of their produce.
It will provide full exemption from excise duty to trailers and semi-trailers used in agriculture.
Moreover, they will give concessional import duty to specified machinery for use in the plantation sector to be, extended up to March 31, 2011 along with a CVD exemption.
Æ’nThe testing and certification of agricultural seeds will be exempted from service tax while the transportation by road of cereals, and pulses to be exempted from service tax.
Meanwhile, the transportation by rail to remain exempt.
Æ’n
In order to ease the cash flow position for small-scale manufacturers, they would be allowed to take full credit of Central Excise duty paid on capital goods in a single installment in the year of their receipt.
Secondly, they would be permitted to pay Central Excise duty on a quarterly, rather than monthly, basis.
Top News Today
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
 Reliance Power, the Anil Ambani group company's 2,400-MW Samalkot plant in Andhra Pradesh is likely to be ready for electricity generation this fiscal. It will install six gas turbines at the plant having
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|