Tuesday, March 1, 2011

Union Budget 2011: Concessions for farm machinery won't benefit farmers, says Vikram Ahuja

AHMEDABAD: Punjab-based Zamindara Farm Solutions (Pvt) Ltd, managing director Vikram Ahuja which offers agricultural equipment to farmers at a nominal rent feel that the concessions being provided for farm machinery would not benefit marginal farmers. 

The government has reduced basic customs duty to 2.5% from 5% to specified agricultural machinery and there parts to encourage their domestic production would cater to a specific group of farmers. 

Also, custom duty on micro-irrigation equipment from 7.5 per cent to 5 per cent has been reduced to promote the efficient means of irrigation especially for dry land farming. 

" Rs 4,000 to Rs 5,000 benefit will not make a huge difference to a farmer who is importing machinery. Government should have given grants to companies working in extension services in villages to ensure the benefit reaches at the farm gate,"he said.

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