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| Sugar ignored
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| Sugar remains completely untouched. Seeing the negative sugar scenario and pressure on high production and low prices we were expecting some sops for the sector which has not happened. However, I am confident that the FM would take a look at this in the near future.
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Vivek Saraogi,MD, Balrampur Chini
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| Seeds for the future
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| The Union Budget has stressed the need for farm development and offers a wholesome package from the production stage which is commendable. It has reiterated the need to develop better seeds for higher productivity especially in pulses with integrated programmes to focus also on oilseeds, palm oil and maize besides plantation crops. The Budget also focuses on the development of irrigation facilitates and provision of credit for inclusive growth. It has also covered the output risk involved by directing attention on both crop and weather insurance besides enabling training and extension services to farmers.
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| However, what was surprising is the decision taken regarding futures trading in wheat and rice ostensibly because of the inflation factor. There has been evidence to show that farmers have benefited from superior price information; and futures trading is the missing link now in the entire gamut of measures for Indian agriculture announced today. We must remember that when supplies are low, inflation cannot be eschewed. But the package being offered will enhance production in the medium run while offering opportunities for the related industries and the processing segments along the way.
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P H Ravikumar,MD & CEO, NCDEX
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| Overlooked metals
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| We are not very happy with the budget as the finance minister has overlooked the metal industry, giving maximum benefits only to farmers and agriculture. The FM should have mentioned the minimum differential duty between raw materials and finished product (which is at par today) and under these circumstances, it is difficult to run the industry for Indian industrialist. Big consumers would directly start importing from other countries like China. Considering the price hike in international market for commodities and raw materials it was essential for the FM to reduce the excise duty which he has not done. Instead he has introduced excise duty on cement industry which might further fuel corruption and inspector raj.
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Rohit Shah,President, Bombay Metal Exchange
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| Pragmatic approach
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| Union finance minister P Chidambaram is very pragmatic and balanced. The economic indicators given in the Budget are very positive and fiscal deficit has been well-managed. There has been rapid growth in international trade and forex reserves are at their peak.
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| The Budget has a special thrust on rural and agricultural sector with higher allocations and various schemes in the areas of health, education, employment, irrigation, water management, farm credit, growth in the production of certified seeds, agricultural crop insurance, better management of fertiliser subsidies with a view to give direct benefit to the farmers, etc.
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| The Budget has provided a tremendous boost to the Textile Industry by extending the Technology Upgradation Fund (TUF) for another 5 years with higher allocation. Moreover, the Handloom Sector has now been covered under TUF. Another positive measure for the textile industry is the increase in allocation for textile parks. The textile industry is growing at a healthy pace and has tremendous potential to grow further during the 11th Plan Period. TUF extension will help the textile industry to build higher capacities and achieve targeted growth as envisaged during the next five years.
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| The robust growth in the textile industry, well supported by the budget proposal as outlined above, will also lead to significant increase in consumption of raw cotton.
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Kishorilal F Jhunjhunwala,President, East India Cotton Association (EICA) |
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