Budget Expectation 2024-25: NK Aggarwal

Agriculture, the backbone of the Indian economy, has been facing numerous challenges over the past few years. These include climate change, floods, droughts, the emergence of new pests and diseases, a growing population, and declining groundwater levels. Despite these challenges, we firmly believe that there are still significant opportunities to overcome these obstacles and empower our farmers to become self-reliant (Aatm Nirbhar) and increase their income.

India's agriculture sector contributes about 15% to the country's GDP and employs around 58% of the population. However, the sector has been under stress due to various factors. Nevertheless, there is a bright and fair chance to overcome these challenges with the right strategies and support. Our vision includes making our farmers self-reliant and helping them increase their income through sustainable practices, technological advancements, and efficient resource management.

At the same time, we seek the support of the government to strengthen our economy and aim to achieve a GDP of $5 trillion by 2027. Our key recommendations are:

1. Provide 200% Weighted Deduction on R&D Expenses by Agrochemical Companies.

2. Reduction in GST for Crop Protection: Lowering the GST on agrochemicals from 18% to 12%.

3. Re-categorization of GST on Seeds: Currently, 'Seeds for sowing' are GST-exempt, leading to an unorganized business approach. We recommend reclassifying these seeds to a "ZERO" rate in the GST Act.

4. Refrain from Fixing Any Minimum Import Price or Minimum CIF for Crop Protection Active Ingredients or Formulations: Imposing restrictions on formulation imports would deprive India of safer and newer formulations beneficial to Indian farmers. It is important to note that most inputs for smallholder farmers in India are zero duty (e.g., seeds). Hence, an increase in customs duty would negatively impact smallholder farmers, making it difficult for them to sustain in such challenging situations.

5. 100% Tax Exemption for Investments in Standard Development, Skill Development, and New Technology.

6. Improve Market Access: Develop infrastructure for better storage, transportation, and marketing of agricultural produce. Implement e-market platforms to connect farmers directly with buyers, ensuring fair prices.

7. Financial Support and Insurance: Expand access to credit facilities and crop insurance schemes to provide financial security to farmers against unforeseen risks.

By implementing these recommendations, we can ensure a resilient and prosperous agricultural sector that significantly contributes to India's economic growth and the well-being of our farmers.