GUWAHATI: Tea Association of India (TAI), a prominent tea planters’ association, has flagged some silver lining in the Union Budget 2020-21 which though doesn’t have much to offer to the tea industry in the form of sops.
The Current Budget has been thematically categorised into three headings viz. (i) Aspirational India (ii) Economic Development (iii) Caring Society. Impact of these on Tea Industry are to be gauged through the benefit that can be accrued , for example, the benefits of Pradhan Mantir Kishan Urga Suraksha Evam Utthaan Mahaabhiyan (PM KUSUM) can be expected to be extended to the Tea Industry in the form of setting up stand alone solar pumps. With the agriculture credit limit being set at Rs 15 lakh crore, the tea Industry, a predominantly agri-based one, would look forward to be benefitted out of this allocation.
Further the exporters of tea industry should be benefited through the proposed rebate on digital refund of duties paid on states including fuel and electricity which is at present not refundable under GST. The introduction of NIRVIK (Niryat Rin Vikas Yojana) to provide enhanced insurance cover and reduced premium for small tax payers, according to a statements issued by TAI.
Five districts in West Bengal and about 12 districts in Assam where tea cultivation is the predominant agriculture activity, could trigger spurt in economic activities if these are developed as export hubs.
The withdrawal of Dividend Distribution Tax from companies is a positive step.The Increased emphasis in the National Flagship schemes . Pradhan Mantri Awas Yojona (PMAY) Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) which is also mentioned at Code no. 24(4) of Occupational Safety Health and Working Conditions Code 2019 can benefit the tea industry along with the schemes that lay more emphasis on child welfare and climate change.
The change in incentive schemes for chemical fertilisers, as is being proposed in the Budget may impact on tea industry as reduced incentives may adversely affect tea industry.