FM Sitharaman urges farmers to utilise govt schemes and benefit from GST cuts for higher income, inaugurates agro-processing centre in Karnataka

Finance Minister Nirmala Sitharaman on Wednesday urged farmers to make full use of central government schemes to boost productivity and income, while highlighting the impact of recent GST rate cuts and new rural initiatives announced in the Union Budget. According to information shared by the Finance Minister's Office on X, Sitharaman was speaking after inaugurating the Farmers' Training-cum-Common Facility Centre for Agro-Processing at Methagal village in Koppal district. The centre, funded under the Members of Parliament Local Area Development (MPLAD) Scheme in collaboration with NABARD, is aimed at helping farmers, Self-Help Groups (SHGs) and Farmer Producer Organisations (FPOs) add value to their produce and access larger markets.

Sitharaman highlights GST relief for farmers

Sitharaman said the recent reduction in the Goods and Services Tax (GST) on bio-pesticides and micronutrients would directly benefit farmers and encourage sustainable agriculture.

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"Prime Minister Narendra Modi guided us to make GST simpler and more beneficial for the people. Accordingly, we implemented the revised GST rates from the first day of Navratri, reducing taxes on items such as tractors, solar-powered equipment and agricultural machinery used by our 'annadatas',” she said, as reported by her office. She added that the government's focus remains on ensuring that farmers benefit from lower input costs and modern farming tools to improve productivity and profitability.

New schemes to strengthen rural economy

The Finance Minister underlined the government's continued efforts to support cultivators through direct benefit transfers and capacity-building programmes. "Under the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), Rs 6,000 per year is directly transferred into farmers' bank accounts. In Karnataka alone, over 43 lakh farmers benefit from the scheme," she said.

She also detailed the newly introduced PM Dhan Dhaanya Krishi Yojana, first announced in the Budget 2025–26, which targets 100 districts nationwide - including Koppal - with an outlay of Rs 24,000 crore. "This scheme will provide quality seeds, promote natural farming practices, improve irrigation and enhance access to markets for farmers," she said.

Koppal, she added, contributes around 10 per cent of Karnataka's paddy production and is known for its fruit cultivation, including mango, guava, grapes, pomegranate, papaya, and figs. "Farmers here have nurtured this agricultural legacy for generations, and it is the government's responsibility to ensure they receive fair value for their produce," Sitharaman said.

Agro-processing centre to boost value addition

The new Farmers' Training and Common Facility Centre will act as a hub for modern fruit processing and marketing. The initiative will train local farmers, SHGs, and FPOs in processing fruits like mango, guava and papaya into juices, pulps and powders - helping them increase shelf life and value addition. The centre will also promote a market-driven ecosystem for fruit-based enterprises, creating new income opportunities and strengthening rural livelihoods.

During her visit, Sitharaman interacted with SHG and FPO members who showcased locally processed products and flagged off the first consignment of goods from the new facility.

Empowering rural entrepreneurs through PM-FME

Sitharaman said the PM Formalisation of Micro Food Processing Enterprises (PM-FME) scheme, launched in 2020, continues to support small entrepreneurs with financial and technical assistance.

"Since its inception, the Centre has released over Rs 3,700 crore to states and Union Territories for implementation. Loans worth more than Rs 11,000 crore have been sanctioned to micro food processing units and collectives. Over one lakh entrepreneurs have received training under PM-FME, enhancing their skills and enabling them to grow their businesses," she said.