Crop Nutrition

Budget 2025: Strengthening MSMEs and Agri-Inputs, But Key Concerns Remain – Dr. Suhas Buddhe

04 February 2025, New Delhi: The Union Budget 2025 has introduced significant measures aimed at strengthening MSMEs and the agri-input sector, reinforcing India’s push for a self-reliant agricultural ecosystem. According to Dr. Suhas Buddhe, Adviser, Soluble Fertilizer Industry Association (SFIA), the government’s expansion of credit guarantees for MSMEs and the continued focus on ‘Make in India’ are welcome steps that will boost domestic manufacturing and reduce dependency on imports. Additionally, the budget’s emphasis on millet production, sustainable farming, and technological advancements like drone integration aligns well with India’s long-term agricultural vision.

However, Dr. Buddhe pointed out that while the budget has made strides in several areas, it has not fully addressed key industry concerns. One major issue is the lack of concrete measures for import substitution in advanced agricultural inputs. The ongoing challenge of GST refund disparities for MSME agri-input manufacturers remains unresolved. The 13% GST differential continues to restrict working capital, forcing many manufacturers to take loans simply to meet tax obligations. Dr. Buddhe emphasized that a comprehensive GST refund mechanism is crucial to ensure a level playing field against Chinese imports and enhance the global competitiveness of Indian MSMEs.

While the government’s encouragement of research and development in agriculture is appreciated, the industry had anticipated specific budgetary provisions for farm schools that would train marginal farmers in modern agricultural techniques. Additionally, the absence of dedicated funding for residue-free farming, alongside support for organic farming, is seen as a missed opportunity to promote sustainable and environmentally responsible agricultural practices.

Dr. Buddhe urged the government to reconsider these critical aspects and introduce necessary amendments to ensure a growth-oriented and inclusive agricultural sector that benefits both farmers and industry stakeholders.

Also Read: Budget 2025: A Boost for Farmers, but GST on Inputs Needs Revision – Dr. R.G. Agarwal

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