GST cuts slash farming costs, boost use of micronutrients, bio-pesticides, modern irrigation tools
The government’s recent decision to cut GST rates on a range of farm-related products is expected to reduce costs for small and marginal farmers and help them adopt better agricultural practices, Fertiliser Minister JP Nadda told Parliament on Friday.
Nadda said the GST on micronutrient fertilisers was reduced from 12 per cent to 5 per cent on September 22, bringing direct savings for farmers who are highly sensitive to input price changes.
He explained that lower input costs have encouraged farmers to use the recommended doses of micronutrients, which are essential for maintaining soil health and improving crop productivity.
Citing data from the Indian Micro-Fertilizers Manufacturers Association, Nadda said the GST cut is helping farmers save around Rs 140 per acre in paddy, Rs 199 per acre in sugarcane, Rs 446 per acre in potato, and Rs 146 per acre in wheat.
He added that the GST reduction from 18 per cent to 5 per cent on key raw materials used in fertilizer production -- such as ammonia and sulphuric acid -- has eased pressure on manufacturers.
The change has lowered their working capital needs, reduced the buildup of unused input tax credit, and improved cash flow.
According to the minister, these benefits will help boost domestic fertilizer production and ensure better availability of nutrients to farmers.
Nadda also highlighted the positive impact of cutting GST on bio-pesticides from 12 per cent to 5 per cent.
He said this move will lower input costs and encourage farmers to adopt integrated pest management practices, where bio-pesticides are crucial for reducing pest resistance and maintaining ecological balance.
The more affordable prices, he said, could also help farmers shift gradually from synthetic chemicals to safer biological alternatives.
The minister emphasised that this tax relief supports the government’s push for organic and natural farming and aligns with India’s broader goal of promoting sustainable and residue-free agriculture.
A separate statement from the fertiliser ministry said GST on mechanical sprayers, sprinklers, drip irrigation systems, and nozzles has also been cut from 12 per cent to 5 per cent.
The ministry said this step is expected to promote precision agriculture by making modern plant protection and irrigation equipment more affordable.
The move aims to help farmers adopt scientific spraying methods and efficient pesticide application technologies, improving both farm productivity and resource use.
