GST cuts on bio-pesticides and micronutrients to directly benefits farmers: FM Sitharaman

Koppal (Karnataka), Oct 15 (IANS) The reduction in Goods and Services Tax (GST) on bio-pesticides and micronutrients will bring direct benefits to our farmers and empower them, Finance Minister Nirmala Sitharaman said on Wednesday.

Addressing the audience after inaugurating the farmers’ training-cum-common facility centre for agro-processing at Methagal village in Koppal district here, the Finance Minister said Prime Minister Narendra Modi "guided us to make GST simpler and more beneficial for the people".

"Accordingly, we implemented GST from the very first day of Navratri. GST rates on several items have been reduced -- including agricultural products such as tractors, solar-powered equipment, and other machinery used by our ‘annadatas’," she told the gathering.

FM Sitharaman further said that under the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme, Rs 6,000 per year is directly transferred into the bank accounts of the farmers via direct benefit transfer (DBT).

"In Karnataka, over 43 lakh farmers benefit under the PM-KISAN scheme," she said.

The Finance Minister further stated that under the PM Dhan Dhaanya Krishi Yojana, 100 districts across the country have been included, and Koppal district is one among them.

"This scheme, with an outlay of Rs 24,000 crore and first announced in Budget 2025-26, is targeted at 100 districts across India, including Koppal. Under the PM Dhan Dhaanya Krishi Yojana, farmers will get quality seeds and training in natural farming techniques and water conservation, irrigation facilities will be improved, and access to markets will become easier," she said.

Koppal district in northern Karnataka is blessed with rich agricultural diversity, contributing around 10 per cent of the state’s paddy production.

"The fertile fields here yield a variety of fruits such as mango, guava, grapes, pomegranate, papaya and figs. The farmers of Koppal have nurtured this agricultural legacy for generations, and it is the government’s responsibility to ensure they receive fair value for their produce," she said.

"When we talk about value addition, the PM Formalisation of Micro Food Processing Enterprises (PM-FME) scheme immediately comes to mind. Launched in 2020, this initiative provides financial, technical, and business support to help local entrepreneurs set up or upgrade micro food processing units in every district," Sitharaman added.

The goal is to enable rural entrepreneurs to transform local crops -- whether millets, fruits, or groundnuts -- into marketable packaged foods, snacks, or ingredients.

Since its inception, the Centre has released over Rs 3,700 crore to states and UTs for implementing various components of the scheme from FY 2020-21 to FY 2025-26.

"Loans worth more than Rs 11,000 crore have been sanctioned to individual micro food processing units and collectives nationwide. Over one lakh entrepreneurs have also received training under PM-FME, enhancing their skills and empowering them to grow their businesses," the Finance Minister noted.

--IANS

na/vd