Agri Business

Govt should offer PLI for pesticide sector, reduce GST to 6%: BestAgro

Our Bureau | | Updated on: Jan 11, 2022
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Currently, the government levies 10 per cent duty on import of pesticides

The government should come out with a production-linked incentive (PLI) scheme for the agrochemical industry like done for many other sectors, said Vimal Alawadhi, managing director of Delhi-based Best Agrolife.

“We require an attractive PLI scheme, along with ease of transporting with fewer intermediates within the country,” Alawadhi said in a statement. Not only the scheme, but also its effective implementation is vital in the coming year for the industry, he said.On Budget expectations, he said: “We hope the government comes up with reforms to rationalise GST on agrochemicals — reduce from 18 per cent to 6 per cent. This will help meet the objective of doubling farmer’s income. We would also like increase in import duties on finished products to make local producers more competitive.”

Currently, the government levies 10 per cent duty on import of pesticides. The need of the hour is to make Indian products globally competitive and offer attractive incentives to export-oriented units. The government should provide financial and technical support to Indian manufacturers for backward integration, especially for import substituted intermediates that will help the industry to become a more tenacious competitor to China, Alawadhi said.

According to industry estimate, the turnover of agrochemicals market is likely to reach ₹80,000 crore by 2026 from current ₹50,000 crore.

The export share is also likely to increase to 60 per cent by 2026 from the current 50 per cent.

Published on January 11, 2022

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