Remove duty on farm capital goods imports: Assocham.

New Delhi: The government should extend the benefit of zero percent duty on import of capital goods to the agriculture sector aimed at increasing productivity and match global standards, Assocham has said.

At present, the import of capital goods by agriculture sector attracts 3 percent duty, it said.

The government should extend the Export Promotion Capital Goods (EPCG) scheme to agriculture sector to encourage Indian manufacturers to continuously upgrade their technology and deliver products of global standards, it said.

There is a need to increase productivity and ensure availability of essential commodities at reasonable prices in domestic market, the chamber said.

"If the benefit of zero duty EPCG is extended to stakeholders, it will help them to leverage their strengths," Assocham Secretary General D S Rawat said.

The government had extended the zero-duty EPCG scheme by one year to March 31, 2012. At present, the scheme covers sectors, including engineering and electronics, textiles and handicrafts.

Under it, a person can import capital goods at zero customs duty subject to an export obligation equivalent to six times of duty saved to be fulfilled in six years.

Source : zeenews.india.com