NEW DELHI, Jan 24: CropLife India has called on the government to lower the goods and services tax (GST) on agrochemicals to 12% and to keep a consistent 10% basic customs duty for both technical raw materials and formulations in the upcoming Budget.
The industry association is also advocating for a 200% weighted deduction on research and development (R&D) expenses for agrochemical firms and has requested funding to enhance agricultural extension services.
“We urge the government to establish a scientific and progressive regulatory framework that will enable the sector to be competitive on a global scale,” stated the industry body.
Some of the key requests include: reducing the GST from 18% to 12%, preserving a uniform 10% customs duty for technical raw materials and formulations, offering a 200% deduction on R&D expenses, and extending R&D benefits to companies with at least Rs 50 crore in fixed assets and Rs 10 crore in annual R&D expenditure.
The industry body cautioned that raising the customs duty to 30% would make crop protection products less accessible to smallholder farmers and hinder access to newer, greener solutions essential for combating pest resistance and addressing climate change issues. (PTI)
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