The forthcoming 2008-09 general budget will focus on measures to further boost agricultural productivity and rationalise taxes on agricultural commodities, Finance Minister P Chidambaram indicated here on Monday.
In his pre-budget consultations with the agriculturists Chidambaram was understood to have expressed concern over stagnation in agricultural productivity and stressed the need for introducing more measures to improve agro infrastructure.

Duty rationalisation

Briefing reporters, International Food Policy Research Institute Asian Director Ashok Gulati said Mr Chidambaram appeared favourably inclined to rationalise or removing taxes on agricultural commodities although most of excise taxes on agricultural commodities have been taken off.

The pre-budget meeting also discussed sensitive issue of fertilizer subsidies with the finance minister expressing concern over lack of political consensus on payment of fertilizer subsidy directly to farmers.
The finance minister in his Budget 2007-2008 had proposed to commence payment of fertilizer subsidy directly to farmers. 

Industry demand

Meanwhile, a vast majority of the corporate heads have strongly pitched for bringing in agriculture sector into tax net.
Nearly 80 per cent of chief executive officers of companies affliated to the Associated Chambers of Commerce & Industry, have, however, collectively demanded that industry’s demand for bringing in agriculture sector into tax net, still remains unheeded to and should no longer be ignored.