Industry Calls for GST Reduction and R&D Incentives

In a significant move, CropLife India has urged the government to consider reducing the goods and services tax (GST) on agrochemicals to 12% in the upcoming Budget 2025. The industry body emphasizes the need for a uniform 10% basic customs duty for both technical raw materials and formulations to foster a competitive environment.

Strengthening Agricultural Extension Mechanisms

Moreover, CropLife India has proposed a 200% weighted deduction on research and development (R&D) expenses for agrochemical companies. This initiative aims to encourage innovation and support the development of greener formulations essential for tackling pest resistance and climate change challenges.

Creating a Competitive Regulatory Framework

The industry body also highlighted the importance of establishing a science-based, progressive, and predictive regulatory framework. Such a framework would not only enhance the sector's global competitiveness but also ensure the affordability of crop protection products for smallholder farmers.