Nirmala Sitharaman holds pre-budget consultations with farm groups
NEW DELHI: Union finance minister Nirmala Sitharaman conducted an important pre-budget consultation with a large delegation of farmers and agricultural economists. During the meeting, which took place on Saturday, she sought suggestions and listened to various issues and demands presented by the farming community.
The finance minister expressed her interest in understanding the farmers’ perspectives on the effectiveness of government policies and explored ways to enhance productivity and resilience in a sector that employs nearly half of India’s population.
During the discussions, several farm leaders emphasized the need to abolish the Goods and Services Tax (GST) on agricultural inputs, including seeds, fertilizers, and pesticides. Dharmendra Malik, a national spokesperson of the Bharatiya Kisan Union (Arajnaitik), stated, “Most farmers believe that GST on agricultural inputs is a significant burden and should be waived. We made this demand strongly, and the finance minister listened attentively, taking notes while assuring us that all possible steps would be taken to reduce cultivation costs.”
Due to the absence of a legal guarantee concerning Minimum Support Prices (MSP), the BKU urged for a revision in the methodology used for determining these prices. They proposed shifting from the current “A2 + FL” method to a broader cost-structure known as C2. This C2 measure accounts for all farming expenses, family labour, and imputed costs related to land and machinery.
In addition to their primary demands, the BKU presented a comprehensive 15-point proposal that included a call to prohibit imports below federally fixed floor prices, aimed at protecting farmers’ interests. Currently, many farmers are protesting along the borders of Delhi, advocating for a legal guarantee regarding minimum crop prices.
“Another important demand raised was to increase the cash benefits under the PM Kisan scheme to at least ₹10,000- ₹12,000 in light of rising inflation,” revealed a participant who chose to remain anonymous. Under the PM-KISAN initiative, the government provides an annual income support of ₹6,000 to farmers with valid registrations, disbursed in three equal installments every four months.
The finance minister reassured the delegation that the Modi government had implemented various unprecedented policies aimed at supporting farmers and emphasized that their welfare would always be a priority. Malik mentioned that the minister assured them she would address the GST concerns related to agricultural commodities, with the demand for its abolition receiving unanimous support from the participants.
