Agriculture processing industry seeks modernisation incentives, tax breaks in Budget

New Delhi [India], January 20 (ANI): As the Union Budget 2025-26 approaches, leaders from the agriculture processing and allied industries have voiced their expectations for measures that can significantly boost the sector's growth and sustainability.
Their focus revolves around modernizing operations, enhancing efficiencies, and supporting the agricultural economy with targeted policy interventions.
Vasu Naren, Chairman & Managing Director of Sona Machinery, emphasized the importance of incentivizing modernisation in the rice milling sector, a crucial component of India's food security and rural economy.
He called for subsidies and tax exemptions to encourage the adoption of energy-efficient and automated machinery, which can enhance productivity and reduce waste. He also highlighted the potential of integrating rice milling by-products like rice husk into ethanol production, aligning the sector with India's ethanol blending goals.
He said "These measures will not only modernize the rice milling sector but also position it as a critical enabler of India's ethanol blending targets and sustainable energy transition. Policy support for rice milling and ethanol production will boost rural livelihoods, strengthen the agricultural economy, and solidify India's position in global agriculture and biofuel markets."
Megha Pavan, Founder and CEO of Arkaa Cluster Private Limited, advocated for increased budgetary support to propel the food processing and nutraceuticals sectors. She called for tax breaks, expanded subsidies for farmers, and investments in research to develop advanced processing technologies.
According to Pavan, such measures will not only improve access to healthier food options but also position India as a leader in sustainable and nutritional solutions.
She said, "We anticipate that the budget will prioritise the advancement of agriculture and agri-tech sectors, with a particular emphasis on enhancing the processing and innovation capacities of the food processing industry".
Akshat Gupta, Practice Leader of Food & Agriculture at Praxis Global Alliance, urged the government to address key challenges facing the agricultural sector.
He emphasized the need for a higher allocation than the current Rs 1.52 lakh crore for improving cold storage, warehousing, and supply chains to reduce post-harvest losses.
Gupta also suggested doubling PM-KISAN installments to Rs 12,000, standardizing agricultural loan interest rates at 3-5 per cent, and increasing NABARD funding to support small farmers.
Additionally, he stressed the importance of modernizing farming through the Digital Agriculture Mission and strengthening Farmer Producer Organizations (FPOs) with training, credit access, and better storage infrastructure.
He said, "Accelerating the Digital Agriculture Mission, with robust Agri-databases and frameworks, can modernize farming. Improved mandi infrastructure, MSP reforms, and support for crop-specific clusters with advisory services will boost productivity."
Industry leaders agree that these measures will not only enhance the productivity and profitability of the agriculture sector but also ensure a more sustainable and resilient future for India's farmers. (ANI)