Budget 2022: Kotak Securities sees incentives on agri commodities value addition

The Centre, in its Budget for FY23, is likely to incentivise value addition of agri commodities besides transportation, marketing and branding of such products, according to brokerage house Kotak Securities.

“Committed to increasing farmers’ income, the government of India can come up with various plans in Budget 2022-23 in spite of the recent withdrawal of three farm laws late last year,” said the brokerage house.

The brokerage house expects that the Centre may announce something in order to achieve self-reliance in edible oil and pulses.

Kotak Securities in its report said,”With over 65 per cent of the country’s total edible oil requirement being met by imports, it’s imperative to reduce dependency on foreign supply. Notably, edible oil is the third largest imported commodity in India after crude oil and gold.

Having already reduced import duties on edible oils three times in the second half of 2021, further duty cuts are unlikely, the brokerage said.