Farmers will now pay less for buying arecanut de-husking machines in Karnataka.

Chief Minister Jagadeesh Shettar, who presented the budget proposals for 2013-14, announced the reduction of VAT on arecanut de-husking machine from 14.5 per cent to 5.5 per cent.

Welcoming this, M. Srinivasa Achar, president of All-India Areca Growers’ Association, said that this will help bring down the cost of arecanut de-husking machine.

A medium-size arecanut de-husking machine costs above Rs 75,000, and the reduction in VAT will bring down the cost of the machine substantially, he said.

K. Padmanabha, president of Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, said that the price of the arecanut de-husking machine will be competitive with this proposal.

The Chief Minister also announced the reduction of VAT on cocoa husk from 14.5 per cent to 5.5 per cent.

Suresh Bhandary, Managing Director of Campco, said that VAT on cocoa beans was 5.5 per cent, and on cocoa husk was 14.5 per cent in Karnataka earlier. The Kerala Government was charging VAT of 5.5 per cent on husk also.

Welcoming the budget proposal to reduce VAT on cocoa husk, he said it is mainly used in the manufacture of cattle feed. Cocoa husk is obtained during cocoa processing, he said.

vinayak.aj@thehindu.co.in

(This article was published on February 8, 2013)
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