The Federation of Seed Industry of India (FSII) has welcomed the landmark decisions of the GST Council, thanking Prime Minister Shri Narendra Modi and the Government of India for ushering in a next-generation reform that strengthens ease of living and sets the stage for faster economic growth.

The decision to slash GST rates on key agri inputs such as fertiliser raw materials, bio-pesticides, micronutrients, and agri machinery is expected to substantially reduce input costs for farmers. This will not only ease pressure on household budgets but also have a spiralling effect by boosting rural consumption, stimulating demand, and creating fresh momentum for the economy.

Ajai Rana, Chairman, FSII and CEO & MD of Savannah Seeds said, “This is a transformative step for Indian agriculture. By reducing GST on essential agri inputs, the government has directly empowered farmers, strengthened the rural economy, and reaffirmed its commitment to building an inclusive and globally competitive India. GST reforms are the catalyst for a new era in Indian agriculture, bringing transparency, efficiency, and competitiveness, while empowering farmers with better returns.”

At the same time, FSII emphasised that similar reforms in GST are long pending for the seed sector. Currently, GST exemption on seeds as a final product denies the industry the benefit of input tax credit (ITC) on nearly all inputs and operational services. Critical items such as packaging, logistics, warehousing, and chemical seed treatments attract GST at standard rates, leading to a higher effective tax burden on seeds compared to other agri inputs that enjoy concessional rates.

Allowing the seed sector to benefit from ITC, either by fully exempting all seed production inputs and services that currently attract GST or by bringing seeds under the minimum GST slab, would help reduce production costs, promote competitiveness, and ensure affordable access to quality seeds for farmers.

He added, “Beyond immediate relief to farmers, this reform will energise consumption across sectors, paving the way for India’s growth story. We remain confident that the Government’s progressive outlook will continue to drive bold reforms, including addressing long-pending issues of the seed sector to further strengthen Indian agriculture.”

Looking ahead, FSII expressed optimism that such forward-looking measures reflect the pro-reform approach of the Government, and similar steps will be extended to the seed industry. Rationalised taxation, policy push for new technologies, and greater ease of doing business in seeds will provide the much-needed impetus to India’s agri sector, ensuring global competitiveness while strengthening food and nutritional security.