Farmer Union Demands GST Exemption and Doubling of PM-Kisan Benefits Ahead of Budget 2025-26

In a pre-budget consultation meeting with Finance Minister Nirmala Sitharaman on Saturday, the Bharatiya Kisan Union (BKU) (Apolitical) presented a series of demands aimed at alleviating the challenges faced by farmers. The national spokesperson, Dharmendra Malik, represented the farmers and urged the government to prioritize the agricultural sector in the Union Budget 2025-26.

Key Demands by BKU

1. GST Exemption on Essential Inputs: The BKU called for the exclusion of agricultural equipment, animal and poultry feed, fertilizers, seeds, and medicines from the ambit of GST. The organization argued that during the era of state-level sales taxes, farmers enjoyed tax-free operations, which should be reinstated to reduce the cost burden on the sector.
2. Reformed Minimum Support Price (MSP): BKU emphasized the need to include all potential risks in calculating MSP, such as post-harvest losses, price fluctuations, natural disasters, and export bans. Additionally, they proposed extending MSP to key fruits, vegetables, milk, and honey.
3. Protection Against Low-Price Imports: The union suggested that agricultural imports should not be allowed below the MSP and that any Minimum Export Price (MEP) should be imposed only during emergencies.
4. Zero Premium for Crop Insurance: Under the Pradhan Mantri Fasal Bima Yojana, BKU proposed waiving insurance premiums for small farmers to enhance their access to crop protection schemes.
5. Increased PM-Kisan Benefits: The union requested the government to double the annual installment under the PM-Kisan scheme from ₹6,000 to ₹12,000, providing greater financial support to farmers.
6. Low-Interest Agricultural Loans: BKU advocated for long-term loans at a 1% interest rate for farmers with a proven repayment history, aiding in the revival of the agricultural sector.
7. Centralized Agricultural Reforms: Suggesting a shift in policy-making, BKU proposed moving agriculture to the Concurrent List of the Constitution and establishing an Indian Agricultural Service to streamline governance.
8. Expansion of Agricultural Markets: To empower farmers, BKU demanded more agricultural markets equipped with grading, packaging, and branding facilities to improve product quality and marketability.

Gratitude for Engagement

The BKU expressed its appreciation for the pre-budget consultation and highlighted agriculture’s role as the largest employment generator in the country. They reiterated the need for focused attention on the sector, which has faced neglect for years.

Broader Implications

This consultation forms part of the Finance Ministry’s annual pre-budget meetings, which include discussions with various stakeholders to gather inputs for the Budget. The 2025-26 Budget, expected to be presented on February 1, will be Finance Minister Nirmala Sitharaman’s eighth, marking another key step in shaping economic policies during the Modi 3.0 government.

All eyes are on how the upcoming Budget addresses these critical agricultural concerns and balances the demands of other sectors in India’s economy.