Bharatiya Kisan Union Presents Key Demands Ahead of Union Budget 2025-26

New Delhi, December 7: The Bharatiya Kisan Union (BKU) has put forth several demands ahead of the Union Budget 2025-26 during a pre-budget consultation meeting with Finance Minister Nirmala Sitharaman on Saturday. The farmers’ body emphasized the need for tax relief and reforms to support the agriculture sector, which they described as neglected despite being a major source of employment.

Key Demands by BKU

1. Exemption from GST:
   The BKU demanded the removal of GST on agricultural equipment, fertilizers, seeds, medicines, and animal and poultry feed, highlighting that farmers were exempt from taxes even during the sales tax regime in states.
2. MSP Reform:
   The union called for a comprehensive reform of the Minimum Support Price (MSP) formula to include:
   • Post-harvest expenses (cleaning, grading, packaging, and transportation).
   • Risks related to price fluctuations, natural disasters, and export bans.
   • Assurance that imported agricultural products would not be priced below the MSP.
3. Inclusion of Key Produce under MSP:
   The BKU urged the government to bring fruits, vegetables, milk, and honey under the MSP ambit to support farmers.
4. Improved Crop Insurance:
   The Pradhan Mantri Fasal Bima Yojana should offer zero insurance premium for small farmers, enabling them to benefit fully from the scheme.
5. Increased PM Kisan Installment:
   The annual payout under PM-Kisan should be doubled from ₹6,000 to ₹12,000.
6. Affordable Loans for Farmers:
   The BKU suggested 1% interest rate loans for agricultural and equipment needs, at least for farmers with a proven repayment history.
7. Agriculture in the Concurrent List:
   The union proposed including agriculture in the concurrent list of the Seventh Schedule of the Constitution and creating an Indian Agricultural Service, akin to the Indian Administrative Service, for better governance.
8. Enhanced Market Facilities:
   Increased agricultural markets with provisions for grading, packaging, and branding were recommended to boost farmer incomes.

Consultation Highlights

The meeting, chaired by Finance Minister Nirmala Sitharaman, was part of the Finance Ministry’s annual pre-budget consultations with farmer associations, economists, and industry leaders. These discussions aim to incorporate sectoral suggestions into the Union Budget, which is set to be presented on February 1, 2025.

The upcoming budget will mark Sitharaman’s eighth as Finance Minister and is expected to outline critical measures for economic growth in the final years of PM Modi’s 3.0 government.