Farmers Demand GST Exemption for Agri-Inputs and Equipment

Farmers' unions from across the nation have urged the government to abolish GST on agricultural products, fertilizers, pesticides, and drip irrigation equipment, as well as reform farm financing policies to boost loan amounts to 75 percent of land value.

Farmers urged the abolition of the policy that requires obtaining approval from the nearest sugarcane factory for the establishment of ethanol units on Sunday, following a two-day Raitha Parishath round table gathering farmers' representatives from several States.

"FRP for sugarcane should be regarded as the farm gate price.  The MSP should be set for all agricultural products and should provide legal protection. Crop insurance should be extended to all products," stated Kurubur Shanthkumar, president of the National Sugarcane Growers' Association, outlining the decision passed during the round table discussion of farmers' representatives. “GST on turmeric should be removed. The guidelines to compensate crop damage due to natural disaster should also be changed.”

The Raitha Parishath also urged the Centre to waive off interest on all agricultural institutions' loans affected by the COVID-19 pandemic and consider it as a new loan. It also urged the Centre to withdraw from the World Trade Organization agreement.

Pertaining to Karnataka,  Shanthakumar stated that farmers' groups encouraged the state to disclose its intentions on the future of its APMC Amendment Act and Land Reforms Amendment Act after the Centre abolished the three farm acts.

"Karnataka should also implement Telangana's raitha bandhu scheme, and pay annually ₹10,000 to every farmer for every acre he owns. The State also should announce Rs.5 lakh life insurance to all farmers on the lines of Telangana.

The round table included representatives from Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Maharashtra, and Haryana.