On February 1st, the Union Budget was announced in the parliament. In the budget it was announced that India will be having the largest decentralized storage capacity in the corporative structure. This will help the farmers store and sell their products at the right time.
This will also help in resolving many challenges faced by the farmers. The plan for the next 5 years is to establish a new multipurpose co-operative societies, primary fisheries society and dairy cooperative societies in every Panchayat.
What is the Amendment act which was announced? How will it create an impact?
Nirmala Sitharaman, Finance minister made an announcement that the highest limit for a person to deposit money would be Rs.2 lakh per member. The loans can be paid in cash to the Primary Agricultural Co-Operative Societies (PACS) and Rural Development Banks (PCARDBs).
Apart from this, the societies formed post April 2023 will be allowed to operate and pay taxes at a concessional rate of 15%. This will be similar to what is now available to all the companies in matters of growth and manufacturing in cooperative sector. Adding to this, it was announced that Section 296, Section 269T will be imposed on the Companies Act in order to ensure the penalty free cash loan and transactions against a primary co-operation for cash less than Rs.2 lakh. This was a major demand from the union’s side.
The threshold limit to hold cash without TDS will be increased in due course. By increasing the limit, the co-operatives can withdraw cash up to Rs.3 crore in a year without the TDS being cut. On withdrawal. The government will be releasing a limit of Rs.10, 000 Crore which will allow the sugar cooperatives to claim payments made to the growers for a certain period of time during the assessment period of 2016-2017.
Will there be a hike in the Outlay?
The corporation minister has allotted a less amount for the discontinuation of certain schemes. The schemes are runner by Agricultural Ministry, the Outlay for computerization of PACS. The amount will be hiked to Rs.968 crore in the near future. As compared to previous year (Rs.350 crore was allotted in the previous fiscal year).
This was done to re-visit the vision of ‘Sahakar Se Samriddhi’. The government has already invested Rs.2516 crore for 63,000 PACS.