The finance minister has reduced the basic customs duty on on micro irrigation equipments to 5% from 7.5% in Union Budget 2011-12.
The stock of Jain Irrigation Systems tumbled close to 8% post the announcement. In an interview with CNBC-TV18, Anil Jain, MD, Jain Irrigation gave his reaction on the finance minister's move. Below is a verbatim transcript. Also watch the accompanying video. Q: At first look, this definitely seemed a bit negative, what is your reaction to this news of the import duty being dropped? A: I think not very consequential at all because in this business, the imports are not there, major global manufacturers have manufacturing locations in India and because this business is related to providing service to the farmer not merely selling products. Cheap imports cannot help. And anyway 2.5% is neither here nor there. On top of it, the government of India has a policy because they provide assistance in subsidy to the farmer that anybody who imports must agree to produce in India within the next two years. So this is not an import related business. So any reduction from 7.5% to 5% or from 5% to 2.5% whatever it is, it would not have any impact whatsoever on our business. Q: You donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
