Guwahati: The industry association FICCI has requested that the GST Council consider lowering the tax rate on agrochemical inputs for the agriculture sector from the current 18% to 5% at the maximum.

Because crop protection solutions are critical for proper crop health management, higher productivity and income for farmers, and sustained growth of the agriculture sector, FICCI believes that the GST Council should favourably consider the agrochemical industry's request to reduce the tax rate on agrochemical inputs for the farm sector from the current 18% to 5% at the maximum.

Mr. R. G. Agarwal, Chair of the FICCI Crop Protection Committee and Chairman of the Dhanuka Group, stated that high Goods and Services Tax (GST) on crop protection chemicals, in particular, hurts small and marginal farmers by increasing their input costs and prompting them to use these essential ingredients in sub-optimal quantities, harming farm output and their own financial health. Yesterday, the industry association published a paper titled Policy Landscape for a Flourishing Agrochemicals Industry.

"An 18% GST on agrochemicals is very unreasonable because they not only protect crop health but also improve crop quality, production, and farmer income. This high rate of 18% is unjustified, and it should be reduced to a maximum of 5% in line with fertilisers "According to Agarwal.

On June 28 and 29, the GST Council will have its 47th meeting, which will be led by Union Finance Minister Ms Nirmala Sitharaman.

Narendra Singh Tomar, Union Minister for Agriculture and Farmers Welfare, has called on the private sector to work with the government to limit the usage of fertilisers and pesticides in farming.

Tomar made the remarks while speaking through a video conference from Solan (Himachal Pradesh) at the 11th Agrochemicals Conclave held by the Federation of Indian Chambers of Commerce and Industry (FICCI) yesterday.

Tomar stated that our country is agriculturally oriented, and farming contributes significantly to the country's economy. "Remuneration is critical for farmers in the agricultural industry." Increased output is also essential. In the nation, good work is being done in the growing of pulses and oilseeds.

It is also vital to maximise agricultural returns and keep post-harvest losses to a minimum for farmers, for which actions must be done. "The Central Government is working on numerous projects in this area," he added.

"The agrochemical industry plays a major role in improving agricultural land by preventing pest losses," said Mr. Susanta Kumar Purohit, Joint Secretary (Chemicals), Department of Chemicals & Petrochemicals, Government of India. "The agrochemicals industry will play a major role in terms of improving productivity through increased usage of agrochemicals in a scientific manner while meeting global standards of residue level required for agricultural exports."