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Resource centre on India's rural distress
 
 

Farmers are paying more, even under schemes meant for their benefit -Ajay Vir Jakhar

-The Indian Express

Each of the poverty alleviation programmes seems to have a recurring theme — being funded by the poor themselves.

The rodomontade about heralding a new epoch of prosperity six years ago is gradually evaporating. It appears the PM is in the dark about the delivery of his government’s policies, just as the Congress leadership seems clueless about issues on the ground. Four specific pain points unmask the gap between policy and impact on the rural economy.

Under PM Kisan, each landowning farmer (landless are excluded) receives Rs 6,000 annually. As per a Punjab Agriculture University study, a farmer growing a combination of paddy and wheat utilises about 50 litres of diesel per acre. The diesel usage differs, depending on the crop and practices. Today, each litre of diesel gets taxed at about Rs 45. Even if one is to discount the average country-wide diesel usage per acre to 60 per cent — 30 litres — the government is virtually collecting a tax of Rs 1,200 per acre from farmers. A small five-acre farmer could be paying about Rs 6,000 as diesel tax, the same as the largesse being received. Additionally, the single-tax regime, which parliamentarians had celebrated at the midnight hour, has farmers paying GST on purchase of inputs like seeds, pesticides, fertilisers, tractors and implements and such others for which, unlike industry, they cannot claim input credit.

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