New Delhi, Sept 22, 2025 – The GST Council has approved a major tax cut on key agrochemicals and agricultural inputs, reducing rates from 12–18% to just 5%. The move addresses long-standing industry and farmer demands for lower input costs.
The revised rates cover bio-pesticides (such as neem-based products, Bt formulations, and microbial solutions), fertilizer acids & precursors (sulphuric acid, nitric acid, ammonia, gibberellic acid), and micronutrients listed under the Fertiliser Control Order, 1985. This change is expected to cut farmers’ input costs by 7–13%, translating into savings of ₹500–1,000 per hectare and boosting adoption of sustainable farming practices.
Industry leaders like UPL, PI Industries, and Rallis India may see a 10–15% increase in sales volumes, driven by improved affordability and rationalized tax structures. However, the Crop Care Federation of India has raised concerns that cheaper imports could threaten smaller domestic manufacturers without complementary trade safeguards.
Overall, the GST cut marks a farmer-centric reform, aimed at improving affordability, strengthening rural incomes, and encouraging eco-friendly agricultural practices in line with India’s vision of doubling farmer income.
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