29 June 2022, New Delhi: The 11th Agriochemical Conference 2022 was organized by FICCI last week in New Delhi. This conference was organized with the aim of brainstorming the favorable policy changes needed for the development of the Agochemical sector in India.
Union Agriculture Minister Mr. Narendra Singh Tomar was the chief guest of the conference. In his inaugural address, he mentioned that the private sector should come forward and support the government in reducing the use of fertilizers and pesticides in the agriculture sector. He also said that “Profit for farmers is very important in agriculture sector. Increase in production is also necessary.”
Reduce the GST on pesticides to 5 percent
Mr. RG Agarwal, Chairman, FICCI Agochemical Committee and Chairman, Dhanuka Group said, “We urge the government to reduce the GST rates on pesticides and bring it to 5 per cent like fertilizers so that small and marginal farmers also benefit.
At present the GST on pesticides is 18 per cent while the GST on fertilizers is only 5 per cent. Before the implementation of GST, VAT (Value Added Tax) was levied on pesticides which was 12 per cent. If we compare the cost of pesticide before GST and after GST, there is a net increase of 6% in the cost which is borne by the farmers.
If the GST on agrochemicals is reduced to 5 per cent, farmers will have to pay around 13 per cent less as compared to the existing 18 per cent GST rate on agro chemicals, thereby reducing the cost of cultivation and increasing profits for the farmers.