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
Large Co-operatives
(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:
Increasing professionalism
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.
Dairy Co-ops
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
Fisheries Co-ops
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.
Co-operative Bank
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.
Miscellaneous
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.
