All India Agarbathi Manufacturers Association: Post Budget Reaction from All India Agarbathi Manufacturers’ Association

Mumbai, 01st Febuary 2021 (GNI): Earmarking of INR 15,700 crores towards the development of MSME sector is indeed a positive move and it will have an impact on the Agarbathi industry as most of the Agarbathi manufacturers fall under the MSME bracket. Similarly the plan to put in place a revised customs duty structure by October 2021 is also commendable.  In fact, even the strengthening of NCLT framework, implementation of e-courts systems,  introducing alternate methods of debt resolution and setting up a special framework for MSMEs will help the industry significantly.  However, considering that the government had acknowledged the issues that MSMEs faced owing to budget , one would have expected extensive support. The budget should have considered giving a 50% additional weightage under the Atmanirbhar Allowance in the Income Tax Act on the cost of materials consumed as well as on the manufacturing expenses incurred in making raw Agarbathi. This would have provided a great relief to the small units who have recently commenced their efforts in making our industry self-reliant and completely indigenous. Further, the government should have re-considered investing in providing infrastructure support like setting up of a dedicated state warehousing facilities and offering them at concessional rates. Funds should have also been considered for setting up common facility centres for bamboo stick making from strips across the district and taluka headquarters of  identified states. Mr. Arjun Ranga, President, All India Agarbathi Manufacturers’ Association (AIAMA).Ends