New Delhi: National Fertilizers Limited (NFL) has expressed its gratitude to Hon’ble Prime Minister Narendra Modi for the landmark Goods and Services Tax (GST) reforms announced after the 56th GST Council meeting. The company said the rationalisation of GST rates on fertilizer inputs and agri-related products will provide a significant boost to the fertilizer sector while directly supporting Indian farmers.
As per the reforms, the GST rates on essential fertilizer inputs such as Ammonia, Sulphuric Acid, and Nitric Acid have been reduced from 18% to 5%. This measure is expected to correct the inverted duty structure, reduce raw material costs, improve working capital efficiency for fertilizer companies, and prevent any potential increase in prices for farmers. The reduction will also ensure timely availability of affordable fertilizers, particularly during sowing seasons.
Similarly, GST on micronutrients and bio-based agricultural inputs has been brought down from 12% to 5%. This is expected to encourage eco-friendly and sustainable farming practices by making bio-pesticides and micronutrients more affordable. The move will also benefit small and organic farmers, Farmer Producer Organisations (FPOs), and aligns with the government’s Natural Farming Mission. NFL noted that this reform is likely to expand the market for sustainable agri-inputs and open up new product lines for fertilizer companies.
Additionally, GST on solar power-based devices has been reduced from 12% to 5%. This is expected to lower irrigation costs and further support farmers by promoting renewable energy in agriculture.
NFL commended the government’s vision of “Viksit Bharat 2047” and its commitment to “Seva, Sushasan aur Garib Kalyan.” The company said the reforms will not only strengthen the logistics and supply chain backbone of the economy but also advance the goals of affordable farming, environmental responsibility, and farmer prosperity.
BI Bureau
