In a fervent appeal to the Union Finance Minister, the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) has underscored the urgent need to reduce the Goods and Services Tax (GST) on arecanut and its associated agricultural inputs.
Appeal for Tax Reduction
Aiming to alleviate the financial burden on farmers, Campco President A Kishore Kumar Kodgi penned a detailed letter to Finance Minister Nirmala Sitharaman, urging a reduction in GST on arecanut from 5% to 2%. Kodgi emphasized that such a reduction would not only incentivize farmers to transact through cooperatives but also significantly curtail tax evasion prevalent in informal trading networks. This strategic move, he argued, would endow cooperatives with a competitive edge, thereby bolstering their sustainability in the market.
Kodgi also highlighted the critical need to reduce the GST on copper sulphate from 18% to 5%. Copper sulphate, an essential fungicide used in the cultivation of arecanut, coffee, and rubber, stands as a cornerstone in modern agricultural practices. Aligning its GST rate with that of other fertilizers would provide substantial financial relief to smallholding farmers, fostering a more equitable agricultural environment.
Curbing Illegal Imports and Protecting Farmers
In addition to tax revisions, Kodgi urged the government to lower the Customs Duty on advanced agricultural tools, particularly carbon fibre poles, which are indispensable for tasks such as fungicide spraying and crop harvesting. Currently subjected to a prohibitive 48% Customs Duty, reducing this rate would render these tools more accessible to farmers, thereby enhancing agricultural efficiency.
Furthermore, Campco’s letter vehemently called for stringent measures to curb illegal imports of arecanut and pepper. Kodgi proposed the incineration of such illicitly imported quantities to mitigate health risks and maintain market integrity. He asserted that illegal imports jeopardize both public health and the livelihoods of local farmers, necessitating immediate and decisive action.
Research and Development Initiatives
Highlighting the necessity of ongoing research, Campco also appealed for government funding to explore the medicinal benefits of arecanut and to develop solutions for combating yellow leaf disease, which plagues arecanut plantations. These research initiatives, Kodgi noted, are vital for advancing agricultural knowledge and ensuring the long-term viability of arecanut cultivation.
By addressing these multifaceted issues, Campco aims to foster a more robust, sustainable agricultural sector that safeguards the interests of farmers while promoting public health and market stability.