Union Budget 2023-24 approves increase in customs duty on imports of readymade pesticides formulations
03 February 2023, New Delhi: The agrochemical industry was pressing the central government to increase the customs duty on the import of pesticide formulations as it was detrimental to the manufacturers in India.
The Pesticides Manufacturers & Formulators Association of India (PMFAI) had submitted various proposals to the central government to increase the customs duty on the import of readymade pesticide formulations. The agrochemical manufacturing industry was running under capacity as most of the formulations were being imported into India at a cost that was competitive enough with a 10% customs duty during import.
Mr. Pradip Dave, President of the Pesticides Manufacturers & Formulators Association of India (PMFAI) said, “It has been our decade-long standing request to increase Customs Duty on imports of readymade pesticides formulations, to provide a level playing field to domestic agrochemical manufacturers. We were informed by the Ministry of Chemicals & Fertilizers that Customs Duty on imports of Pesticides Formulation has increased from present 10% to 15%.”
He further mentioned, “Government has decided for separate HS Code classification of Technical Grade Pesticides, moving Technical Grade products from Chapter 38 to Chapter 29 with Customs Duty applicable at 10%. At present, both Technical Grade Products and Formulation products are classified under Chapter 38 and this creates problems when the same Customs Duties are applied to both Technical Grade Pesticides (which are manufacturing-use products) and Formulated Pesticides, which are ready-to-use finished products. We are sure, separate HS Code classifications of Technical Grade Products and Formulation products will encourage indigenous manufacturing.
The decision of the Government will help encourage and increase local production of Agrochemicals/Pesticides, boosting the vision of the “Make in India” and “Aatmanirbhar” Agrochemical sector.
Also Read: Union Budget 2023 must consider reduction in GST rates on Agrochemicals: R G Agarwal, Chairman of Dhanuka Group
(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)