Decentralised storage capacity

Subject: Economy

Section: Msc

Context: India will have world’s largest decentralised storage capacity: Union Cooperation Minister.

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With the Budget announcement to set up decentralised storage capacity, Union Cooperation Minister said India will have the world’s largest decentralised storage capacity by the cooperative sector which will help farmers store their produce and sell at the right time to get a fair price.
This will play an important role in to increase the income of farmers.
In the next five years, the government will facilitate the establishment of new multipurpose cooperative societies, primary fisheries societies and dairy cooperative societies in every panchayat.
FM announced a higher limit of ₹2 lakh per member for cash deposits and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
New cooperative societies formed on or after April 2023, which commence manufacturing or production by March 2024 and do not avail of any specified incentive or deduction, are proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies.
Sections 269SS and 269T of the Companies Act will be amended to ensure there is no penalty for cash loan/transactions against primary co-operatives in cash less than ₹2 lakh.
It is proposed to enable co-operatives to withdraw cash up to ₹3 crore in a year without being subjected to TDS on such withdrawal.