Budget 2020

Of harvest and after

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Tax break for firms promoting post-harvest activities

To give a boost to the Prime Minister Krishi Sampada Yojana, a scheme for agro-marine processing and development of agro-processing clusters under the Food Processing Industries Ministry, the Union government announced the “Operation Greens” Mission.

In the Union Budget for 2018-19, Finance Minister Arun Jaitley announced tax incentives for promoting post-harvest activities in agriculture.

“My government proposes to launch an ‘Operation Greens,’ on the lines of ‘Operation Flood’. Operation Greens shall promote farmer producers organisations (FPOs), agri-logistics, processing facilities and professional management. I propose to allocate ₹500 crore for this purpose,” the Minister said.

“In order to encourage professionalism in post-harvest value addition in agriculture, I propose to allow 100% deduction to these companies registered as farmer producer companies and having an annual turnover up to ₹100 crore in respect of their profit derived from such activities for a period of five years from financial year 2018-1.”

Mr. Jaitley noted that 100% deduction was allowed in respect of profit of the cooperative societies which gave assistance to its members engaged in primary agricultural activities. Over the past few years, a number of farmer producer companies had been set up along the lines of co-operative societies, which provide similar assistance to their members.

“The food processing sector is growing at an average rate of 8% per annum. The allocation of Ministry of Food Processing Industries is being doubled from ₹715 crore in the revised estimate of 2017-18 to ₹1,400 crore in the budgeted estimate for 2018-19. The government will promote establishment of specialised agro-processing financial institutions in this sector,” he said.

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Printable version | Jan 25, 2020 10:15:36 AM | https://www.thehindu.com/business/budget/of-harvest-and-after/article22625406.ece

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