While announcing the Union Budget on Monday, Finance Minister Nirmala Sitharaman announced an Agricultural Infrastructure and Development Cess (AIDC) to conserve agricultural output post harvest and improve infrastructure.
She also proposed a 10 per cent hike in the farm loan disbursal target to Rs 16.5 lakh crore in the Budget.
The new agri infra cess will be applicable from February 2, 2021. “There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently. This will ensure enhanced remuneration for our farmers. To earmark resources for this purpose, I propose an Agriculture Infrastructure and Development Cess (AIDC) on small consumer items (see box below). However, while applying this cess, we have taken care not to put additional burden on consumers on most items,” Sitharaman said.
The Finance Minister also announced an enhanced allocation to the Rural Infrastructure Development Fund from Rs 30,000 crore to Rs 40,000 crore. She further proposed to double Micro Irrigation Fund, started with a corpus of Rs 5,000 crore under (National Bank for Agriculture and Rural Development) NABARD, by augmenting it by another Rs 5,000 crore.
In order to boost value addition in agriculture and allied products and their exports, Sitharaman also proposed to increase the scope of ‘Operation Green Scheme’ that is presently applicable to tomatoes, onions, and potatoes (TOPS), to be enlarged to include 22 perishable products.
The government also proposed substantial investments for the development of fishing harbours, fish landing centres and promote seaweed farming. She said, “Seaweed farming is an emerging sector with the potential to transform the lives of coastal communities. It will provide large-scale employment and additional incomes. To promote seaweed cultivation, I propose a Multipurpose Seaweed Park to be established in Tamil Nadu.”
The Agri Infra Cess
- 100 per cent on alcoholic beverages
- 17.5 per cent on crude palm oil
- 20 per cent on crude soyabean
- 35 per cent on apples
- 40 per cent on peas.
- 1.5 per cent on coal, lignite & peat
- 5 per cent on specified fertiliser (urea etc)
- 30 per cent on kabuli chana
- 50 per cent on bengal gram/chick peas
- 20 per cent on lentil (mosur)
- 5 per cent on cotton (not carded or combed)
