At the pre-budget webinar consultation with the Finance Minister Mrs Nirmala Sitharaman, N Satya Narayana, Chief Executive of the NCUI argued that those incentives being provided to FPOs should be extended to the cooperative sector as well.
There are about 60 %, which means 60,000 viable PACs and multipurpose societies which may help in enhancing the value of produce of farmers after processing. “These 60k PACS can do wonders for Indian rural side”, said the CE.
Several key representatives of agriculture and cooperative sectors were present along with Union Finance Minister Nirmala Sitharaman. Senior officials of the Finance Ministry were also present in the Webinar.
Satyanarayan also felt that the viable cooperatives need to be included under the definition of MSME under Atma Nirbhar Bharat Scheme as in case of MSMEs.
Advocating the Amul model for PACS, the CE argued that on the lines of Amul processing dairy farmers milk in various forms, PACS can value-add the produce of farmers in so many ways.
PACS can procure the agricultural produce of farmers, particularly poor, and process the same at various levels according to the capability of technology adoption.
He said that through this, distress sale of farmers of any product can be avoided, for which sufficient fund base mechanism shall exist as in case of MSMEs and FPOs.
Further, he said that clause (v) of sub-section 2 of Section 80 P be amended so as to extend the benefit of income tax deduction to all primary agricultural societies engaged in processing of agricultural produce of farmer members, whether with or without the aid of electricity.
Currently, only those PACS, which are processing, without the aid of electricity are exempted. Further, he said that under Atmanirbhar Bharat Package, within the schemes already sanctioned, cooperatives may be given their due share so that they can serve the farm community better.
Representatives of Punjab Agriculture University, Bharatiya Kisan Union, Spice Board, etc were present on the occasion. NCUI being the sole representative of the cooperative movement was invited to the meeting.