Scope of exemptions enlarged to improve storage of agricultural produce
By ANIMonday, February 28, 2011
NEW DELHI - In the General Budget 2011-12, the scope of exemptions to improve storage and warehouse, specialty for agricultural produce has been further enlarged.
Presenting the Budget in the Lok Sabha today, Union Finance Minister, Pranab Mukherjee, said that full exemption from excise duty to air-conditioning equipment and refrigeration panels for cold chain infrastructure has been extended and conveyor belts have been included in the full exemption from excise duty to equipment used in cold storages, mandis and warehouses.
He Basic customs duty on the specified agricultural machinery has been reduced to 2.5 per cent from five per cent.
“The concession is also being extended to parts of such machinery to encourage domestic production. Basic customs duty on micro-irrigation equipment has been lowered from 7.5 per cent to five per cent,” he added.
Announcing a new initiative on vegetable clusters for farmers, Mukherjee stated that the growing demand for vegetables has to be met by a robust increase in the productivity and market linkage.
“To achieve this objective, an efficient supply chain to provide quality vegetables at competitive prices will have to be established,” he added.
Mukherjee proposed to provide an amount of Rs. 300 crore for implementation of vegetable initiative to set in motion a virtuous cycle of higher production and incomes for the farmers.
The Finance Minister further announced that this programme would be launched near major urban centres initially. (ANI)
