20 January 2023, New Delhi: CropLife India suggested that to enhance the focus on Innovation and Research & Development, which would benefit the farmer, the budget 2023-24 must consider a uniform basic customs duty of 10% for both Technical raw material and Formulation. It must provide a 200% weighted deduction on R&D expenses by agrochemical companies and GST on agrochemicals be reduced from the current 18% to 12%.
Mr. Durgesh Chandra, Secretary General, CropLife India said, “To enhance the income of the farmers, agriculture reforms are the need of the hour and Budget 2023-24 will be an imminent step. Formulation imports of new single molecules or their different combinations help the farmers in combating resistance, climate change, and new invasive pests and in improving the competitiveness of Indian agricultural products internationally. Once these new solutions get adopted by the farmers, local manufacturing can commence and support the larger objective of ‘Make in India’.”
Mr. Chandra added, “Therefore the topic of imports needs to be looked at holistically and factually, and not with a narrow perspective so that stakeholders in the service of Indian Agriculture are not misguided with motivated claims and narrow perceptions. Keeping in mind the potential of the agrochemical industry, the Government has recognized Agrochemicals as one of the 12 Champion Sectors, where India can become a major global manufacturing hub. However if we have to become a global hub for supplies, Indian regulatory processes must comply with the global regulatory ecosystem. We cannot have a dual policy of stifling formulations imports in India, yet promoting the export of formulations. We urge the Indian Government to implement a science-based, progressive and predictive regulatory regime, for the sector to achieve its true potential”.
CropLife India and its members urged the Government to retain a uniform basic customs duty of 10% for both Technical raw materials and Formulations; provide a 200% weighted deduction on R&D expenses by agrochemical companies and reduce the GST on agrochemicals from the current 18% to 12%; all of which will directly benefit the farmers.
(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)