Indian Agriculture Reform Agenda Needs Re-Energising

• Indian agriculture has been plagued by a lack of value addition and organized processing of raw produce.

• The multiplicity of taxes and state-level duties, cesses, and surcharges has led to a lack of integration from farm to fork.

• The unified Goods and Services Tax (GST) system has subsumed these levies since July 2017.

• The latest GST rate rationalisation exercise has reduced the tax on virtually every agricultural and processed food item to zero or 5%.

• This includes dairy products like ice cream, biscuits, cookies, cakes, pastries, sugar confectioneries, and corn flakes.

• The GST Council has eliminated multiple duties on like or similarly-derived items, such as skimmed milk powder and butter fat.

• The reform also removes distinctions between loose salted, savoury-flavoured, and caramelised popcorn.

• The reform of tractors, harvesters, threshers, and drip irrigation systems is only part of the reform.

• The Narendra Modi government’s attempts to reform agriculture through farm laws have been repealed under political pressure and violated by imposing export bans and stocking limits on wheat, rice, sugar, and pulses.

Indian Farm Policy Overhaul is important topic for Civil service exam (WBCS).

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