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Tax prop

Tax prop in an attempt to assist organic farmers, the Union government is intending to clamp one per cent tax on chemical fertilisers. Union minister of state for finance Balasaheb Vikhe Patil recently said that the funds collected through the cess would be utilised to help agriculturists cope with the changes in farming techniques, heighten application of biofertilisers and create the required infrastructure to certify the organic produce.

The minister pointed out that the job of certification could be given to the Krishi Vigyan Kendras which are functional throughout the country. He said, "All agencies such as banks, agriculture development promotion bodies, Union and state governments and export authorities would hold periodical meetings with agro-exporters and issue permissions.'

The Union government would also develop agro-climatic zones as export pockets to make agricultural exports competitive. It will divert some of the subsidies given to the agriculture sector towards these zones.

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