Industry body hails agri input GST cuts, seeks similar relief for seeds

New Delhi, Sep 6 (PTI) The Federation of Seed Industry of India (FSII) on Saturday welcomed the GST Council's decision to slash rates on key agricultural inputs while urging similar relief for the seed sector.

The move to cut GST on fertiliser raw materials, bio-pesticides, micronutrients and farm machinery will substantially lower input costs and create economic momentum, the industry body said.

"This is a transformative step for Indian agriculture. The government has directly empowered farmers and strengthened the rural economy," said Ajai Rana, FSII Chairman and CEO of Savannah Seeds.

However, FSII flagged that similar reforms are overdue for the seed sector.

Currently, GST exemption on seeds denies the industry input tax credit (ITC) benefits on most inputs and services. Items like packaging, logistics, warehousing and chemical treatments attract standard GST rates, creating a higher tax burden on seeds versus other agri inputs with concessional rates.

The body urged the government to either fully exempt all seed production inputs currently attracting GST or bring seeds under the minimum GST slab. This would cut production costs, boost competitiveness and ensure affordable seed access for farmers.

"This reform will energise consumption across sectors. We're confident the government's progressive outlook will drive similar steps for the seed industry," Rana said in statement.

FSII said rationalised taxation and policy support for new technologies would provide impetus to India's farm sector while ensuring global competitiveness and food security. PTI LUX ANU