Budget 2013 Wishlist: Commodity sector seeks sops, export incentives

Budget 2013 may offer provisions for setting up National Agriculture Climate Damage Fund and creation of post-harvest infrastructure in villages. Here are some deamnds of the agriculture & commodity sectors:




Sugar

Demand of the sector: To remove levy obligation from industry

Impact of the demand: The Rs 80,000-crore indutry will get liquidity of Rs 2,600 crore but then subsidy burden will transfer to the government

Likely action by Government: Govt may not agree as it will widen the fiscal deficit. If it agrees it will have to ask for additional budgetary provision of Rs 3000 crore.



Spices

Demand of the sector: Extend time limit for re-export from 120 days to one year

Impact of the demand: More flexibility for exporters to re-export

Likely action by Government: Government may not agree





Demand: Inclusion of pepper and chilli in the focus product scheme for 2% export incentive

Impact: Exporters will be encouraged to ship more value added products

Likely action by Government: Govt may not heed to the demand





Demand: Re-introduction of spices under visheshkrishiupajyojana

Impact: Indian exports stood at Rs 5,752 crore last year. The value will go further up

Likely action by Government: Govt may not agree







Demand: Drought relief package for cardamom farmers in Kerala

Impact: Provide ample compensation to farmers who have lost 20% of their produce

Likely action by Government: Kerala govt has already sought aid for drought relief measures from the Centre