FICCI has said that GST Council should consider the agrochemical industry request favourably seeking reduction of the tax rate on agrochemical inputs for the farm sector from current 18 per cent to 5 per cent at the maximum
The Federation of Indian Chambers of Commerce & Industry (FICCI) in a press conference held on June 22, 2022, has said that GST Council should consider the agrochemical industry request favourably seeking reduction of the tax rate on agrochemical inputs for the farm sector from current 18 per cent to 5 per cent at the maximum.
The 47th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, will be held in Chandigarh on June 28 and 29.
Addressing the Press Conference on ‘Policy Landscape for a Flourishing Agrochemicals Industry’, organised by FICCI, R G Agarwal, Chair, FICCI Committee on Crop Protection and Chairman, Dhanuka Group said that high Goods and Service Tax (GST) on crop protection chemicals especially hurts small and marginal farmers by increasing their input cost and prompting them to use these essential ingredients in sub-optimal quantities to the detriment of farm output and their own financial health.
“A GST of 18 per cent on agrochemical is highly unjustified since they act as insurance to not only crop health but also increase their quality, yield and income of farmers. This high rate of 18 per cent is not justified and it should be brought down to a maximum of 5 per cent at par with fertilisers.”
Dr CD Mayee, a Former Agriculture Commissioner opined that Agrochemical industry acts as a backbone to our farmers and assures them of high yield with better quality produce while mitigating crop losses. In view of the climate changes and emerging threats of pest and disease there is urgent need to overhaul the regulatory system for introduction of new and innovative chemistries and technologies. There is also an urgent need to improve the enforcement mechanism, at several levels, to ensure the supply of high-quality agrochemicals to farmers on a sustainable basis.
“This can be achieved with the cooperation of the private sector in addition to hiring adequate manpower and strengthening government laboratories, providing the latest analytical instruments, reference standards and making ISO17025 NABL certification mandatory as done under FSSAI Act as well as support from Quality Council of India or other independent organisations,” said Dr Mayee.
FICCI is organising its 11th Agrochemicals conference 2022 on the theme ‘Policy landscape for a flourishing Agrochemicals Industry’ on June 23 in New Delhi.