Interim budget evokes mixed reaction from trade bodies in Madurai

The interim budget presented on Thursday has evoked a mixed reaction from trade bodies in Madurai.

Agro Food Chamber of Commerce and Industry president S. Rethinavelu has welcomed the budget. He said that the proposal to promote private and public investments in post-harvest activities would substantially lead to reduction in losses and increase the income of farmers. Announcement that efforts would be made to step up value addition in agricultural sector and for boosting farmers’ income were welcome, he said.

Tamil Nadu Chamber of Commerce and Industry president N. Jegatheesan called the budget a disappointment. He said that prices of petrol, diesel and cooking gas had soared. It was very disappointing that no price reduction had been announced. Projects such as AIIMS-Madurai, NIPER, bus port, Metro rail and expansion work of Madurai airport announced in the previous budgets to boost development in Southern Tamil Nadu had not taken shape, he said.

Tamil Nadu Food Grains Merchants Association president S.V.S.S. Velshankar welcomed the job opportunities created in the fisheries sector, projects for encouragement of cattle breeding and for post-harvest activities of agricultural produce.

Madurai District Tiny and Small Scale Industries Association president R.M. Lakshminarayanan said that there was nothing in the budget for the benefit of Micro, Small and Medium Enterprises sector.

All the trade bodies expressed their disappointment that there will be no change in direct and Indirect taxes. They said that GST, which is a progressive taxation, was not user-friendly what with hundreds of notifications and circulars both by the Central and State governments, which were difficult to comprehend by the traders.

C. Muthuraja, Head, Department of Economics, The American College, said that reduction expected in direct and indirect taxes did not happen. There seems to be a huge gap between public expectations and budget announcements.