Presenting the first Union Budget of the third decade of 21st century, Finance Minister Smt. Nirmala Sitharaman, unveiled a series of far-reaching reforms, aimed at energizing the Indian economy through a combination of short-term, medium-term, and long-term measures.
The budget has something for each sector of cooperative—be it co-op banks, UCBs, dairy co-ops, Fisheries co-operatives or fertilizer cooperative, etc .
The Key Highlights of Union Budget 2020-21 for the cooperative sector could be listed as such
(IFFCO, Kribhco, Amul, Campco etc)
Parity brought between cooperatives and corporate sector
Option to cooperative societies to be taxed at 22% + 10% surcharge and 4% cess with no exemption/deductions
Cooperative societies exempted from Alternate Minimum Tax (AMT) just like Companies exempted from the Minimum Alternate Tax (MAT)
Urban Co-op Banks
Cooperative Banks to be strengthened by amending Banking Regulation Act for:
Enabling access to capital
Improving governance and oversight for sound banking through the RBI
Deposit Insurance and Credit Guarantee Corporation (DICGC) permitted to increase Deposit Insurance Coverage to Rs. 5 lakh from Rs.1 lakh per depositor.
Doubling of milk processing capacity to 108 million MT from 53.5 million MT by 2025
Artificial insemination to be increased to 70% from the present 30%
MNREGS to be dovetailed with fodder farms
Foot and Mouth Disease, Brucellosis in cattle and Peste Des Petits ruminants (PPR) in sheep and goat to be eliminated by 2025
Rs. 1 lakh crore fisheries’ exports to be achieved by 2024-25
200 lakh tonnes fish production targeted by 2022-23
3477 Sagar Mitras and 500 Fish Farmer Producer Organisations to involve youth in fisheries extension.
Agriculture credit: Rs. 15 lakh crore target set for the year 2020-21.
PM-KISAN beneficiaries to be covered under the KCC scheme.
NABARD Re-finance Scheme to be further expanded.
Growing of algae, sea-weed and cage culture to be promoted-Bio fertilisers such as Sagarika of IFFCO to benefit from this
Kisan Rail to be setup by Indian Railways through PPP:
To build a seamless national cold supply chain for perishables (milk, meat, fish, etc. Express and Freight trains to have refrigerated coaches.)
Krishi Udaan to be launched by the Ministry of Civil Aviation: Both international and national routes to be covered.
Balanced use of all kinds of fertilisers – traditional organic and innovative fertilisers
Measures for organic, natural, and integrated farming:
Jaivik Kheti Portal – online national organic products market to be strengthened.
Zero-Budget Natural Farming (mentioned in July 2019 Budget) to be included.