Budget 2021: PMFAI demands GST reduction on pesticides to 5% from 18%

The Union Budget will be presented by Finance Minister Nirmala Sitharaman on February 1.

The Pesticides Manufacturers and Formulators Association of India (PMFAI) on Wednesday demanded that the government in the forthcoming Budget should reduce GST to 5 per cent from the current 18 per cent on pesticides in line with other farm inputs like seeds and fertilisers.

Villagers spray pesticides in a field on the outskirts of Sanand, around 30 km from Ahmedabad on September 1. The five states cited previously have also reported the maximum number of patients that have been cured and discharged, cumulatively accounting for 58.04% of the total 65,081 people who have recovered till September 1. (Sam Panthaky / AFP)

That apart, the government should increase duty drawback (export benefits) of pesticides from the present 2 per cent to 13 per cent besides increasing import duty on technical and finished pesticides to 20-30 per cent to protect the domestic agro-chemicals industry, it said in a statement.

The PMFAI also urged the government to extend a financial support and other development assistance for developing technologies for intermediates and technical grade pesticides indigenously under 'Make in India' programme.

These were four key demands the PMFAI -- which represents over 200 small, medium, and large-scale Indian pesticide manufacturers, formulators, and traders -- made in a representation submitted to the Fertiliser and Chemicals Ministry, it added.

Agriculture is the only sector which has shown resilience and grown 3.5-4 per cent in the last quarter. Considering the prevailing economic scenario, it calls for special focus and support for sustainable growth of Indian agriculture, he added.

The Union Budget will be presented by Finance Minister Nirmala Sitharaman on February 1. The Budget session of Parliament will start on January 29.