Financial services provider SMC Global Securities Ltd has pitched for concessional loans and direct farm credit among other key incentives to agriculture sector in the forthcoming Budget with a view to improving farm productivity and containing the rising prices.
Incentives like concessional loans and direct farm credit waivers for farmers would boost the sector’s growth, it said.
“Higher budgetary focus on agriculture will enable the Government to achieve intended agri growth and also help it obtain the inclusive growth,” SMC Global Securities Ltd said in a statement here today.
The incentives to agriculture sector would also help in the growth of FMCG sector, the SMC Group Chairman and Managing Director, Mr Subash Chand Aggarwal, said.
He said that India has already witnessed good monsoon, which would increase the agricultural production and strengthen the purchasing power of farmers.
“Incentivising the farming community through budgetary measures will enrich common folks to make them access products and articles of FMCG companies and arrest likely price distortions,” he added.
Indian industry has also called for the Government to provide tax incentives on agricultural activities in the Budget to encourage private participation and adoption of new technologies in the sector.
According to the Government’s advance estimates, the output of the agriculture and allied sectors is likely to grow by 5.4 per cent in 2010-11 compared with just 0.4 per cent in 2009-10.