Farmers seek cheaper credit, lower taxes, doubling PM-KISAN amount in pre-budget meet with FM

The two-hour meeting saw detailed discussions on proposals aimed at addressing multiple challenges in the agricultural sector, with the key demands being financial relief, market reforms, and strategic investments.

Farmer representatives and agricultural stakeholders urged the government to provide cheaper long-term credit, implement lower taxes, and double the PM-KISAN income support during a comprehensive pre-budget consultation with Union finance minister Nirmala Sitharaman on Saturday.

A farmer walks amid tear gas fired by police to prevent them from marching towards India's capital Delhi, at the Punjab-Haryana Shambhu Border in Punjab on Friday. (AFP)

The two-hour meeting saw detailed discussions on proposals aimed at addressing multiple challenges in the agricultural sector, with the key demands being financial relief, market reforms, and strategic investments.

Bharat Krishak Samaj chairperson Ajay Vir Jakhar pressed for targeted interventions to boost agricultural productivity and farmer welfare.

Primary demands included reducing interest rates on agricultural loans to as low as 1% and increasing the annual PM-KISAN instalment from ₹6,000 to ₹12,000. Farmers’ bodies also advocated for zero-premium crop insurance for small farmers under the Pradhan Mantri Fasal Bima Yojana.

Taxation reforms were a critical component of the proposals, with stakeholders calling for GST exemptions on agricultural machinery, fertilisers, seeds, and medicines. PHD Chambers of Commerce and Industry requested a reduction of pesticide GST from 18% to 5%.

Jakhar proposed a targeted investment strategy of ₹1,000 crore annually for eight years, focusing on specific crops like chickpeas, soybean, and mustard to enhance national agricultural productivity.

This approach aims to strategically enhance crop yields, reduce import dependence, and improve national nutritional security, he told PTI after the meeting.

Bhartiya Kisan Union (BKU) speaker Dharmendra Malik demanded a comprehensive review of the minimum support price (MSP) mechanism, seeking calculations that include land rent, farm wages, and post-harvest expenses.

He also demanded the display of agricultural machinery prices on company websites, improvement in mandi infrastructure, widening MSP coverage beyond 23 commodities, disallowing imports below MSP levels and fixing minimum export prices only in emergencies.

Minister of state for finance Pankaj Chaudhary and senior officials from finance and agriculture ministries attended the meeting, which included representatives from farmer producer companies, agricultural associations, and corporate sectors.