The budget 2021-22
The Finance Minister, Nirmala Sitharaman said that covid 19 brought great challenges to India’s economy in the current fiscal. She, however, applauded the Modi government for meeting the challenges. She said, “Within 48 hours of declaring a lockdown, Prime Minister Narendra Modi announced the Pradhan Mantri Garib Kalyan Yojana valued at Rs 2.76 lakh crore.”
Nirmala Sitharaman identified eight areas of focus for the Union Budget 2021-22 as the “Sankalp of NATION FIRST”.
· Doubling farmers’ income
· Strong Infrastructure
· Healthy India
· Good Governance
· Opportunities for Youth
· Education for All
· Women Empowerment, and
· Inclusive Development
Presenting the Union Budget 2021-22 in the backdrop of aggressive farmers’ protest over the three farm bills passed in the Monsoon Session last year, Sitharaman emphasized that the Modi government paid more attention to the well-being of the farmers than the previous governments. She said the amount paid to farmers in 2013-14 in the case of wheat was Rs. 33,874 crore which increased to Rs. 62,822 crore in 2019-20 and to Rs. 75,050 crore in 2020-21.
In the case of pulses, Sitharaman said the increase in the amount paid to the farmers increased 40 times in 2020-21 over 2013-14 — from Rs. 236 crore to Rs. 10,530 crore.
She referred to Swamitva Scheme saying 1.8 lakh property owners were provided cards under the Modi government. Sitharaman announced that the agriculture infrastructure fund would now be available to mandis. This came as a bit to assure the protesting farmers that the government was not inching towards doing away with the existing MSP-Mandi system.
Sitharaman announced that the top-5 fishing hubs in the country would be developed as the hubs for economic activities for the all-round development of the coastal areas. She also proposed to set up a multi-purpose seaweed park in Tamil Nadu and encourage seaweed farming in coastal areas for greater employment generation.
Nirmala Sitharaman spoke about strengthening the manufacturing sector saying the Indian companies need to become the core of the global supply chain for an Atmanirbhar Bharat. The government had announced a Rs. 1.97 lakh crore allocation for this in 2020 to be spent over the next five years. She said this would be further strengthened.
The food processing industry had no particular mention in this year’s budget though, our industry body CII had suggested some important needs of this industry.
What the food industry had expected
Industry body CII before the budget had demanded higher allocation of funds for food processing schemes and tax incentives for exports of agriculture and food items.
The Ministry of Food Processing Industries has taken up the execution of the “TOP’ scheme for effective implementation of the scheme under cluster approach necessary allocations should be made in the Union Budget 2021-22.
Low interest finance and other benefits of SAMPADA scheme of Food Processing ministry should be made available outside Mega Food parks too in order to create a level playing field for the food industry.
For existing projects, any capital investment should be extended 50 percent accelerated depreciation to encourage modernization; and the investment development allowance should be re-introduced, the association said, adding that such depreciation has been provided up to 150 percent to various sectors such as energy, environment, computers, textiles, etc.
To position India as the food factory to the world and promote value-added processed food products abroad, CII said 200 percent deduction on expenditure incurred on promoting Indian Branded food items should be allowed.
CII said that a Rs. 2000 crore fund has been created under NABARD to provide affordable credit for setting-up of new or modernization of existing food processing units in designated food parks.
However, it said that limiting the funding assistance only to units in designated food park is an inhibiting factor. It recommended that — eligibility for credit under this fund should be extended to all food processing units (not only those located in the designated food parks).