Pesticide and agrochemical makers have sought a reduction in the GST in the Budget to spur the use of crop protection chemicals by farmers in the country.
The Pesticide Manufacturers & Formulators Association of India (PMFAI) has suggested reducing GST on pesticides to 5 percent from the present 18 percent in line with other agri inputs such as seeds and fertilisers.
PMFAI is an industry body consisting of over 200 small, medium and large scale domestic pesticide manufacturers, formulators and traders.
Raise duty drawback to boost exports
Further, PMFAI has also made a pitch for raising duty drawback on exports of pesticides to 13 percent from the current 2 percent. Also, it has suggested an increase in customs duty on imports of finished pesticide formulations or chemicals to a minimum of 30 percent and on technical grade products to 20 percent to protect the domestic manufacturers.
In its representation to the Fertiliser Ministry, PMFAI has also suggested that the Government extend financial support and other development assistance in the Budget for developing technologies for intermediates and technical grade pesticides indigenously under the Make in India programme.
“The GST reduction will help bring three-fourth of the total farmers in India, who are outside the ambit now, protect their crops without causing any substantial loss to the central exchequer. This will help farmers harvest crops with minimal loss and secure better returns too,” said Pradip Dave, President, PMFAI, in a statement.
Since agriculture is the only sector that has shown resilience and growth of 3.5-4 percent in the last quarter, it calls for a special focus and support, PMFAI said.