The Finance Minister Nirmala Sitharaman addressing the post-Budget press conference, at the National Media Center in New Delhi on Wednesday, January 1, 2023. Photo Credit: RV Murthy
Finance Minister Nirmala Sitharaman announced new initiatives for the cooperative sector in her Union Budget speech for 2023-24. The minister said that new cooperative societies starting construction activities before March 31, 2024, will get the benefit of a lower tax rate of 15%, which is currently available to new construction companies.
“Secondly, I propose to provide an opportunity to sugar cooperatives to claim as expenditure the payments made to sugarcane farmers for the period prior to the assessment year 2016-17. This will give them a relief of about Rs 10,000 crore Hope to meet.”
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He also announced a higher limit of ₹2 lakh per member for cash deposits and loans in cash by Primary Agricultural Cooperative Societies (PACS) and Primary Cooperative Agricultural and Rural Development Banks (PCARDBs) and said that ₹3 crore for tax deduction Higher limit is being provided to cooperative societies on cash withdrawal (TDS) at source.
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He said that the government is promoting cooperative based economic development model for small and marginal farmers and other marginalized sections. A new cooperative ministry was formed in 2021. The government has already started computerization of 63,000 PACS with an investment of ₹2,516 crore. Model bye-laws for PACS were prepared in consultation with all stakeholders and States to make them multipurpose PACS. A National Cooperative Database is being prepared for countrywide mapping of cooperatives.
“With this background, we will implement a plan to set up decentralized storage capacity on a large scale. This will help farmers to store their produce and get remunerative prices through timely sale. Facilitate the establishment of a large number of multipurpose cooperative societies, primary fisheries societies and dairy cooperative societies in panchayats and villages.
Appreciating the efforts, Union Home and Cooperation Minister Amit Shah said on Twitter that decentralized storage capacity will play an important role in Prime Minister Narendra Modi’s resolve to increase farmers’ income.
Shri Shah said, “With the plan to set up the world’s largest decentralized storage capacity in the budget, farmers belonging to cooperative societies will be able to store and sell their produce at the right time and get a fair price.”