BKU Seeks GST Exemption On Agricultural Inputs

Bharatiya Kisan Union (apolitical) has made several demands ahead of the Union Budget 2025-26, at a consultation meeting with Finance Minister Nirmala Sitharaman on Saturday.

National spokesperson Dharmendra Malik participated in the meeting with the minister, where he demanded, on behalf of the farmers, that agricultural equipments, animal and poultry feed, fertilizers, seeds, medicines be excluded from the ambit of GST. The farmers body in their memorandum to the government argued that even when there was a sales tax system in the states, farmers were free from taxes.

Bharatiya Kisan Union expressed its gratitude to the minister for the pre-budget consultation. BKU noted that the agriculture sector generates maximum employment but still has been a victim of neglect for a long time.

Among other demands, BKU sought from the government that the formula for setting MSP on agri produce be reformed. All possible risks — expenses and losses in post-harvest operations such as cleaning expenses, grading expenses, packaging expenses, transportation expenses, risk of price fall due to government selling its agricultural products in the open market, natural disaster risk, risk of export ban — should also be included while deciding the MSP.

The BKU also suggested before the minister Sitharaman that under no circumstances should agricultural products be imported at a price lower than the Minimum Support Price (MSP). At the same time, any imposition of Minimum Export Price (MEP) should be only in emergency situations.

The farmers union also suggested that all key fruits and vegetables, milk and honey be brought under the ambit of Minimum Support Price (MSP).

Under the Pradhan Mantri Fasal Bima Yojana, the insurance premium for small farmers should be zero, so that they can avail the benefits of the insurance scheme, BKU suggested.

The amount of PM Kisan installment should be increased from the current Rs 6,000 to Rs 12,000 annually, it added.

Arguing that long term loans are needed to revive the agricultural sector, BKU suggested that agricultural loans and agricultural equipment loans be provided to farmers at 1 per cent interest rate to farmers — at least to those farmers whose historical data show that they pay back on time.

In another suggestion, they said agriculture should be included in the concurrent list of the Seventh Schedule of the Constitution and a central cadre of the Indian Agricultural Service should be created on the lines of the Indian Administrative Service. Agriculture is now a state subject under the Constitution.

BKU also called for increased agricultural markets in the country. Facilities for grading, packaging and branding should be provided to the farmers in the markets.

On Saturday, Finance Minister Nirmala Sitharaman chaired a pre-Budget meeting with various farmer associations and leading agricultural economists to gather their inputs and suggestions for the upcoming Budget.

The Finance Ministry conducts several pre-Budget consultation meetings annually with experts, industry leaders, economists, and state officials. The formal exercise to prepare the annual Budget for the next financial year has already begun.

As in previous years, the Budget for 2025-26 is expected to be tabled on February 1.

The 2025-26 Budget will mark Finance Minister Nirmala Sitharaman’s eighth. All eyes will be on the key announcements and the government’s forward-looking economic guidance for the remainder of the Modi 3.0 tenure. (ANI)