ITC - Agricultural income

yes. you are supplier of taxable supplies of goods/services. The  inputs seem to be intended to be used in the course of business. Therefore, yes. 

I agree with Mr Dugar. I had misunderstood the question. Section 17(2) is applicable in this case and you are eligible to ITC only on input tax which is attributable to taxable supplies. The tax paid on semi-agricultural products is not attributable to taxable supplies. Therefore, ITC is not admissible.

Thanx Mr. Dugar for the correction.