CropLife India, an association of 16 R&D-driven crop science companies, suggested that in order to enhance the focus on Innovation and Research & Development, which would benefit the farmer; Follow a uniform basic customs duty of 10% for both Technical raw material and for Formulations; Provide 200% weighted deduction on R&D expenses by agrochemical companies and GST on agrochemicals be reduced from the current 18% to 12%.
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Mr. Durgesh C Sharma, Secretary General, CropLife India
Mr. Durgesh Chandra, Secretary General, CropLife India opines, "In order to enhance the income of the farmers, agriculture reforms are the need of the hour and Budget 2023-24 will be an imminent step. Formulation import of new for-India single molecules or their different combinations helps the farmers in combating resistance, climate change, new invasive pests and in improving the competitiveness of Indian agricultural produce internationally. Once these new solutions get adopted by the farmers, local manufacturing can commence and support the larger objective of ‘Make in India’. Formulations imports are then converted to the manufacture of formulation and then to manufacturing of the technical in India.”
Mr. Chandra added, “Therefore the topic of imports needs to be looked at holistically and factually, and not with a narrow perspective so that stakeholders in the service of Indian Agriculture are not misguided with motivated claims and narrow perceptions. Keeping in mind the potential of the agrochemical industry, the Government has recognized Agrochemicals as one of the 12 Champion Sectors, where India can become a major global manufacturing hub. However if we have to become a global hub for supplies, Indian regulatory processes must comply with the global regulatory ecosystem. We cannot have a dual policy of stifling formulations imports in India, yet promote export of formulations. We urge the Indian Government to implement a science-based, progressive and predictive regulatory regime, for the sector to achieve its true potential.”
Our rationale
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CropLife India Recommendation |
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Proposal for enhancement of Basic Customs Duty of pesticide formulation from 10% to 30% by some sections of industry. |
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Farmers are bearing high GST rate on agrochemicals but are unable to seek benefits. |
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Simplification of requirement under GST for issuance of credit notes to customers. |
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Currently it is very stringent. The law states -
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In order to achieve ‘Atmanirbhar Bharat’, Government should boost Research and Development (R&D). |
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Local procurement and maintenance cost of drones, its batteries/components |
Request for 50% subsidy on local procurement and maintenance cost of drones, its batteries/components. |
This will help in the growth of the domestic drone sector and usher in faster uptake of this new and revolutionary technology. |
CropLife India and its members would like to urge the Government to retain a uniform basic customs duty of 10% for both Technical raw materials and for Formulations; provide a 200% weighted deduction on R&D expenses by agrochemical companies and reduce the GST on agrochemicals from the current 18% to 12%; all of which will directly benefit the farmers.
About CropLife India
CropLife India is committed to advancing sustainable agriculture and it is an association of 16 R&D-driven member companies in crop protection. We jointly represent ~ 70% of the market and are responsible for 95% of the molecules introduced in the country. Our member companies have annual global R & D spend of 6 billion USD and are firmly committed to engaging with the farming community to enable Safe, Secure Food Supply.
For more information, please visit: croplifeindia.org.