Bharatiya Kisan Union demands GST Exemption on Agri Inputs and Doubling PM Kisan Benefits ahead of Budget 2025-26

The Bharatiya Kisan Union made many proposals ahead of the Union Budget 2025-26 during a consultation meeting with Finance Minister Nirmala Sitharaman on Saturday.

National spokesperson Dharmendra Malik attended the meeting with the minister and urged, on behalf of farmers, that agricultural equipment, animal and poultry feed, fertilizers, seeds, and medications be exempt from the GST. In its memorandum to the government, the farmers’ body argued that even in states with a sales tax system, farmers were exempt from paying taxes.

The Bharatiya Kisan Union expressed gratitude to the minister for the pre-budget consultation. BKU highlighted that while agriculture generates the most employment opportunities, it has long been neglected.

Among other demands, BKU asked the government to change the formula for determining MSP on agricultural produce. All potential risks—expenses and losses in post-harvest operations such as cleaning, grading, packaging, and transportation expenses, risk of price decline due to the government selling its agricultural products in the open market, natural disaster risk, and risk of export ban—should be considered when determining the MSP.

The BKU further advised Minister Sitharaman that agricultural products should not be imported at a lower price than the Minimum Support Price (MSP). At the same time, any Minimum Export Price (MEP) should only be implemented in emergency situations.

The farmers’ union also requested that all key fruits and vegetables, milk, and honey be included in the Minimum Support Price (MSP).

The insurance price for small farmers under the Pradhan Mantri Fasal Bima Yojana should be nil so that they can benefit from the scheme, according to BKU.

The amount of PM Kisan installment should be enhanced from Rs.6,000 to Rs.12,000 per year, it stated.

Arguing that long-term loans are required to revive the agricultural sector, BKU proposed that agricultural loans and agricultural equipment loans be made available to farmers at a 1% interest rate, at least to those farmers whose history data shows that they repay on time.

Another option was to include agriculture in the concurrent list of the Seventh Schedule of the Constitution, as well as to establish a central cadre of the Indian Agricultural Service similar to the Indian Administrative Service. Agriculture is now considered a state topic under the Constitution.

BKU also advocated for larger agricultural markets in the country. Farmers should have access to grading, packing, and branding facilities at markets.

Finance Minister Nirmala Sitharaman conducted a pre-Budget meeting on Saturday with several farmer associations and top agricultural economists to solicit feedback and proposals for the upcoming Budget.

The Finance Ministry has multiple pre-Budget consultation meetings each year with specialists, industry leaders, economists, and governmental officials. The formal process of preparing the yearly budget for the following financial year has already begun.

The budget for 2025-26 is scheduled to be tabled on February 1, as it has in prior years.

The 2025-26 Budget will be the eighth for Finance Minister Nirmala Sitharaman. All eyes will be on significant announcements and the government’s forward-looking economic direction for the rest of the Modi 3.0 era.