FICCI | 22 Jun, 2022
As crop protection
solutions are crucial for proper management of crop health for higher
productivity and income of farmers and sustained growth of the agriculture
sector, FICCI today said that GST Council should consider the
agrochemical industry request favourably seeking reduction of the tax rate on
agrochemical inputs for the farm sector from current 18 per cent to 5 per cent
at the maximum.
The 47th meeting of the GST Council, chaired by
Union Finance Minister Ms Nirmala Sitharaman, will be held in Chandigarh on
June 28 and 29.
Addressing the Press Conference on 'Policy
Landscape for a Flourishing Agrochemicals Industry', organized by FICCI, R G Agarwal, Chair, FICCI Committee on Crop Protection and
Chairman, Dhanuka Group said that high Goods and Service Tax (GST) on crop
protection chemicals especially hurts small and marginal farmers by increasing
their input cost and prompting them to use these essential ingredients in
sub-optimal quantities to the detriment of farm output and their own financial
"A GST of 18 per cent on agrochemical is
highly unjustified since they act as insurance to not only crop health but also
increase their quality, yield and income of farmers. This high rate of 18 per
cent is not justified and it should be brought down to a maximum of 5 percent
at par with fertilizers."
Digambar Mayee, a Former Agriculture
Commissioner opined that Agrochemical industry acts as a backbone to our farmers
and assures them of high yield with better quality produce while mitigating
In view of the climate changes and emerging threats of pest and
disease there is urgent need to overhaul the regulatory system for introduction
of new and innovative chemistries and technologies. There is also an urgent
need to improve the enforcement mechanism, at several levels, to ensure the
supply of high-quality agrochemicals to farmers on a sustainable
"This can be achieved with the cooperation
of the private sector in addition to hiring adequate manpower and strengthening
government laboratories, providing the latest analytical instruments, reference
standards and making ISO17025 NABL certification mandatory as done under FSSAI
Act as well as support from Quality Council of India or other independent
organizations," said Mayee.
"The Government must undertake total
reforms in the working of the CIB&RC and advise them to implement the
decisions taken in the various RCs at the earliest in a transparent
manner," he added.
Effective and timely implementation of
regulatory decisions by the government will help the agrochemical sector to
become more efficient in delivering solutions that benefit the agriculture
sector in a sustainable manner.
The Government has declared pesticides as a
champion sector and hence it is essential to align Indian legislations with
international laws with a view to attract new technology and investment from
developed countries, therefore is it also pertinent to relook at certain
provisions of Draft PMB 2020, which was prepared pre-covid time.
FICCI is organizing its 11th Agrochemicals
conference 2022 on the theme 'Policy landscape for a flourishing
Agrochemicals Industry' on June 23 (Wednesday) in New Delhi.