Soluble Fertiliser industry expects Union Budget 25 to fund R&D to advance agri inputs

It is critical to address the inequality and competitiveness challenges caused by Chinese imports by ensuring a complete GST refund for MSME agri-input manufacturers.

Finance Minister Nirmala Sitharaman all set to present the Union Budget on February 1, agri – economists and agriculture industry experts are hoping for a slew of reforms that would help boost agriculture, MSMEs and other sectors, while prioritising fiscal prudence.

While sharing the expectations from Union Budget 2025 Dr Suhas Buddhe, Adviser, Soluble Fertilizer Industry Association said,“We expect Budget 2025 to focus on enhanced funding and support for research and development towards the import substitution of advanced agricultural inputs. It is critical to address the inequality and competitiveness challenges caused by Chinese imports by ensuring a complete GST refund for MSME agri-input manufacturers. Currently, they purchase raw materials and machinery at 18 per cent GST and sell their products at 5 per cent, resulting in a 13 per cent GST differential that blocks significant working capital on every unit produced. This GST blockage forces many to borrow funds just to pay GST, limiting their growth potential.

Additionally, we hope for a budgetary provision to establish farm schools to educate and train marginal farmers in modern farming techniques. There is also a pressing need for allocating funds to promote residue-free farming alongside organic farming, encouraging sustainable and eco-friendly agricultural practices.”

It is critical to address the inequality