Farmers demand lower credit rates, tax relief, PM-KISAN hike in pre-budget talks

New Delhi: Representatives of protesting farmers and agricultural stakeholders have called on the government to introduce cheaper long-term credit options, reduce taxes, and double the PM-KISAN income support, reported PTI.

These proposals were presented during a pre-budget meeting with Finance Minister Nirmala Sitharaman on Saturday, focusing on solutions for key challenges in the agricultural sector.

Ajay Vir Jakhar, Chairman of Bharat Krishak Samaj, highlighted the importance of addressing farmers' immediate needs, advocating for agricultural loan interest rates to be slashed to 1 per cent and the PM-KISAN annual instalment to be increased from Rs 6,000 to Rs 12,000. They also pushed for zero-premium crop insurance under the Pradhan Mantri Fasal Bima Yojana to benefit small-scale farmers.

Taxation reforms were at the forefront of discussions, with calls to eliminate GST on essential agricultural inputs like machinery, seeds, fertilisers, and medicines. The PHD Chambers of Commerce and Industry recommended lowering the GST on pesticides from 18 per cent to 5 per cent. Jakhar suggested that a focused investment of Rs 1,000 crore per year over eight years could significantly improve the productivity of crops like mustard, chickpeas, and soybean.

''This approach aims to strategically enhance crop yields, reduce import dependence, and improve national nutritional security,'' he told PTI. Bhartiya Kisan Union (BKU) Speaker Dharmendra Malik demanded an overhaul of the Minimum Support Price (MSP) framework, suggesting that it factor in costs such as land rent, labour, and post-harvest expenses.

He further proposed that agricultural equipment prices be displayed on company websites and recommended better mandi infrastructure, MSP expansion beyond 23 crops, restrictions on imports below MSP, and minimum export price guidelines only during crises.

RG Agarwal, Chairman of the PHD Chambers’ Agribusiness Committee, reiterated the need for reduced GST on pesticides, combating the circulation of counterfeit pesticides, and protecting data linked to new molecular research.

The meeting also delved into constitutional changes, including bringing agriculture under the Concurrent List and establishing a centralised Indian Agricultural Service. Minister of State for Finance Pankaj Chaudhary and senior officials from the finance and agriculture ministries participated in the discussion alongside representatives from farmer producer companies, agricultural associations, and the corporate sector.