“This year budget by giving due priority to cooperatives in accordance with the government’s slogan of ‘Sahkar Se Samriddhi’, will ensure that the benefits of cooperative development reach the lowest layers of society”, said Dileep Sanghani, President, National Cooperative Union of India (NCUI) in a reaction to this year’s Budget.
He further said that the provisions of the Budget will benefit new cooperatives, primary agricultural cooperative societies, and primary cooperative agricultural rural development banks.
Pointing out that cooperatives have long been demanding a level playing field as the private companies, Dileep Sanghani, President, NCUI said that this year’s Budget is a big step in this direction as it will boost the formation of new cooperatives in the field of manufacturing, the benefit of lower tax rate of 15% as given to the private companies.
Further, he said that sugar cooperatives will be strengthened as Rs. 10,000 crore relief will be given to them to claim payments made to sugarcane farmers for the period prior to the assessment year 2016-17 as expenditure.
He further said that additional packages under “PM Matsya Sampada Yojana” will boost the cooperative fishery sector as weaker sections of cooperatives need to be strengthened so as to compete in the market economy. Further, providing a higher limit of 2 lakh per member for cash deposits and loans in cash by PACS and PCARDBs will give a bigboost to Deposit Schemes and loan repayments of ARDBs and PACS.
Further, a higher limit of 3 crore for TDS on cash withdrawal to cooperatives is indeed welcome. He also said that the budgetary provision to set up massive decentralized capacity for farmers will provide avenues for PACS and other primary societies to establish state-of-the art infrastructure for providing various services to members of cooperatives.
Dr. Sudhir Mahajan, Chief Executive, NCUI said that this year’s Budget is cooperative friendly. He said that the provision related to the government facilitating setting up a large number of MSCS, fisheries and dairy cooperatives in uncovered panchayats and villages in next 5 years will generate employment and provide livelihood to the poorest sections of society.
