Agritech gamers are trying ahead to the Authorities for measures to spice up capital flows within the upcoming Union Funds 2023-24 and catalyse non-public sector analysis and growth to help the businesses within the sector.
Karthik Jayaraman, Co-Founder and MD, WayCool Meals, mentioned the federal government ought to be certain that capital, each home and worldwide, flows into sectors of nationwide significance corresponding to meals and agri and meals via incentives. He recommended that the Authorities ought to take a look at contemplating differentiated LTCG Tax for sectors of nationwide significance.
Jayaraman mentioned whereas the Authorities has declared agriculture as precedence sector, and facilitated the enablement of low value debt finance to this sector, given the extent of fragmentation of farms, administering this has confirmed to be difficult to most lenders. “It’s time we checked out meals, and never simply agriculture, as a precedence sector. Which means that anyone concerned within the manufacturing, buying and selling, processing, storage, transport and retail of meals shall be eligible for precedence sector lending for the creation of property in addition to for working capital. By enabling the complete worth chain, significantly the ahead provide chain, entry capital at cheaper charges, the federal government can massively incentivise formalisation and introduction of higher expertise into the sector. This may also be administratively simpler for lenders as organised gamers are simpler to work with and safe lending. Whereas appreciable subsidies are supplied on this house together with PLI scheme for meals processing, the above choice can allow investments on this sector far more successfully, seamlessly and speedily,” Jayaraman mentioned.
Amith Agarwal, Co-founder and CEO, Agribazaar, mentioned: “The Funds ought to allot tax breaks and prolong financial incentives corresponding to subsidised credit score amenities, rate of interest subvention to agritech enterprises. Such a transfer will go a great distance in enabling the businesses to smoothen their enterprise goal of constructing a extra resilient agri-ecosystem. Additional, the federal government ought to create a devoted framework of growth-oriented insurance policies for the agritech sector, which ought to encourage agri-preneurs to bridge the infrastructure and provide chain gaps by constructing amenities, investing in storage infrastructure, and offering last-mile connectivity.”
Mark Kahn, Managing Companion, Omnivore, mentioned there’s a must reboot the Yellow Revolution and make India self-sufficient in edible oil. For farmers to transition to oilseed farming, the federal government should radically develop the realm beneath cultivation and facilitate the enlargement of processing infrastructure and farmer help techniques. Additionally, the federal government wants to spice up agricultural exports to understand its purpose of doubling farmer incomes. This can require altering insurance policies relating to agricultural exports and actively financing the event of export-oriented processing infrastructure. “Lastly, we consider that improvements in agrifood life sciences are important to handle the affect of local weather change on Indian agriculture. The federal government has a crucial function to play right here, catalysing non-public sector R&D in addition to straight supporting agritech start-ups centered on agrifood life sciences,” Kahn mentioned.
Navneet Ravikar, CMD, Leads Join Companies, desires the federal government to abolish the GST and mandi tax on agricultural produce introduced from FPOs. “A common crop insurance coverage scheme must be launched with a 100% subsidy on premium for marginal farmers with landholding beneath 2 hectares and crop insurance coverage third-party loss assessors affiliation must be shaped for technology-based yield estimation and localized claims evaluation for well timed and equitable declare settlement beneath PMFBY. The grants and subsidies beneath numerous schemes for drones must be prolonged to agritech, agrifintech, and personal analysis organizations who’re working within the subject of Agriculture. The federal government ought to grant 50% subsidy for assaying, testing and certification on agricultural merchandise, milk produce to licensed meals testing labs.”
warehousing and value subsidies
Ashok Prasad, Co-Founder & CEO, Unnati, mentioned the federal government may chill out laws to make investing simpler for the non-public sector. “The Authorities ought to prioritise efficient warehouse administration, and increasing finance availability will help farmers in safeguarding their harvest from exterior threats,” he mentioned.
Rajamanohar Somasundaram, Founder and CEO, Aquaconnect, expects beneficial insurance policies and subsidies to assist scale back feed costs and energy prices to regulate the costs. “Though aquaculture carries excessive manufacturing dangers, in contrast to agriculture farmers, fish and shrimp farmers are but to get subsidies on insurance coverage premiums. Lack of subsidy on insurance coverage premiums demotivates the farmers’ from availing any threat mitigation for his or her crops, as this provides up the manufacturing value considerably. Authorities help on premia will assist farmers to an incredible extent to mitigate manufacturing dangers,” Somasundaram mentioned.