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Dairy Budget Key-points: GST Nil on Butter, Paneer & Ghee; No Export Duty for SMP Exports

The dairy sector has requested for a nil or zero tax on dietary items such as butter, ghee, and paneer from the current 12 % Goods and Services Tax (GST). To exchange this stock in the global market, we need government’sbacking with no export duty collected on the same. Treat livestock farmers on par with land-owner agriculture farmers.

Chintu Das
Dairy Sector
Dairy Sector

To supplement centres endeavours to safe guard country's nourishment security, the dairy sector has requested for a nil or zero tax on dietary items such as butter, ghee, and paneer from the current 12 % Goods and Services Tax (GST).

Nirmala Sitharaman, Finance Minister has been approached by the Indian Dairy Association (IDA) looking for zero tax on the bundled dairy items. "We have appealed to the Finance Minister to lessen the GST on butter, ghee and paneer from current 12 percent to 0 percent. Right now, bundled paneer pulls in 12 percent GST while unpacked paneer is sold without GST. The centre is spending a great deal on nourishment security. Ghee and paneer are a rich wellspring of sustenance," said GS Rajorhia, President, IDA.

Skimmed Milk Powder (SMP) Stocks:

The dairy body has additionally raised the issue of making a level battleground for Indian dairy units to sell skimmed milk powder (SMP) stocks, that had accumulated during the lock-down time frame.

"Currently, we have SMP stocks for around 2 lakh tons in the nation. To exchange this stock in the global market, we need government’s backing with no export duty collected on the same. Leave everybody with a chance to discover their market. What's interesting that we don't need it forever yet for a year by when we can clear the stock," said Rajorhia, in addition, to make dairy farming sustainable and appealing for farmers, it is important to reduce input costs by reducing GST on inputs apart from milk.

Eminently, in Budget 2020-21, the Finance Minister had assigned rupees 3,289 crore for the dairy and animal husbandry division while the Department of Agriculture, Cooperation and Farmers Welfare got rupees 1.34 lakh crore.

Equalize the Market:

The dairy marketers are likewise looking for treatment of landless animal raisers on a standard with agri farmers.

RS Sodhi, Managing Director of Amul advertiser, Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), stated, "A total of rupees 1.8 lakh crore is allocated foragriculture and fertilizer sector budget plan, out of which around rupees 3,300 crore is allocated to the livestock sector, which isn't so much as 2 percent."

"Along these lines, animal farming, dairy, poultry, fisheries and agribusiness yields ought to be dealt with similarity. Whatever advantages are accessible to the land-proprietor farmers ought to likewise be accessible to landless animals keepers. Domesticated animals farmers ought not be treated differently with regards to asset distribution," Sodhi said.

The gross worth included rate terms by domesticated animals to agribusiness and unified area has developed from 21.8 percent in 2011-12 to 28.4 percent in 2018, though GVA in rate terms by horticulture and united area to the country's GDP has dropped from 18.5 percent to 17.2 percent during a similar period.

The gross value added by livestock to agribusiness and the associated sector in percentage terms rose from 21.8 percent in 2011-12 to 28.4 percent in 2018, while GVA fell from 18.5 percent to 17.2 percent in the same period in percentage terms for agriculture and the associated sector to the country's GDP.

Not merely allied operation anymore:

Sodhi expressed that the issue lies in the customary methodology in underscoring on asset allotment for crop production. "Directly from the Green revolution, the arrangement of asset designation for crop production has proceeded."

"Livestock or animal farming is not, at this point simply allied exercise. It is a significant type of revenue for landless and peripheral farmers. Of around 100 million individuals associated with livestock farming, around 80% are land-less and insignificant rural Indian families. Be that as it may, larger part of agribusiness assets are gong to land-proprietor farmers. This must be rectified to whatever degree conceivable," Sodhi expressed.

Liability of income-tax:

Other than the asset requirements for framework advancement, yield and breed improvement, among many others, there is likewise a long-belated issue of income tax obligation on dairy farmers, while there is no income tax for the land-proprietor horticulture farmers.

"Today, there is a great deal of trouble in the rural sector and farming space, yet on the off chance that the assets are made accessible to the livestock sector can improve the sustenance of provincial India. This is on the grounds that marketing isn't an issue. The market is continually developing," Sodhi said.

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