The Federation of Seed Industry of India (FSII) on Saturday welcomed the GST Council’s decision to slash rates on key agricultural inputs but urged the government to extend similar relief to the seed sector.According to FSII, the reduction of GST on fertiliser raw materials, bio-pesticides, micronutrients and farm machinery will lower input costs and strengthen the rural economy.“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, the body pointed out that GST exemption on seeds denies the industry input tax credit (ITC) on most inputs and services, with packaging, logistics, warehousing and chemical treatments attracting standard rates. This, it said, increases the overall tax burden compared with other agri inputs that now enjoy concessional rates.FSII has urged the government to either exempt all seed production inputs currently under GST or bring seeds under the minimum slab, which would reduce production costs, improve competitiveness and make seeds more affordable 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 added.The body said rationalised taxation and support for new technologies would strengthen India’s farm sector, enhance global competitiveness and contribute to food security.
