Increase in agri allocation and cut in corporate tax to benefit the plantation sector
KOCHI: Apart from the positive impact of increase in the agriculture credit outlay, crop insurance coverage and irrigation fund, the plantation sector, which include coffee, tea, rubber and cardamom feels the cut in corporate tax will indirectly benefit the sector as many of the consumers belong to this segment especially in the rubber sector.
The decision of the government to cut corporate tax by 5% to 25 % is expected to benefit the rubber MSMEs who have been clamouring for relief from mounting import of finished goods. Since majority of the industrial units belong to the small category, the decision is certain to bring relief.
“Majority of the units belong to the small category having a turnover of around Rs 10 crore. Some are in the medium scale category having turnover of Rs 50 crore or more while others belong to the micro category of having Rs 3 to 4 crore,” said Kamal K Chaudhary, president of All India RubberBSE 0.00 % Industries Association.
The industry has been demanding that the duty on import of finished goods should be raised to 30% from the current level of nil to 10%. Apart from this the industry has also been upset about the rise in production cost with the increase in the rubber prices.
Navas Meeran, chairman of Eastern Condiments, a curry powder major, said the new law on contract farming will benefit the spices sector. ” It will encourage participation of farmers’ cooperatives in farming, which will help in reducing pesticide use and increasing productivity,” he said.
Hike in irrigation funding and allotting more funds to MNREGA will help the plantation sector. ” We had demanded that MNREGA should be made use of to solve the labour shortage problem in plantations,” said N Dharmaraj, chief executive of Harrisons Malayalam LtdBSE 1.68 %. and former president of United Planters Association of Southern India(Upasi).
Source: ECONOMIC TIMES