A Welcome Step
Q. What is the impact of GST on Fertilizer industry?
Ans. GST is a very welcome step. One nation, one tax policy has been implemented by this government. It was long due for the country. As far as fertilizer is concerned, I will say that it is a welcome step for fertilizer. It has been brought down from 12 to 5 percent. Previously it was around 6%. It will be much more beneficial for the fertilizer industry as well as for the farmer community. At least now farmers will get in a much lesser price. Already companies have started giving advertisements in different newspapers about reduction of price of urea and other fertilizers.
Q. How will it affect insecticides and chemical industry?
Ans. Again I will say that it is a welcome stay for insecticides industry. Already insecticides industry was paying around 17.6% or 17.7%. But it was more complicated and different from one to other state. Now it will be a uniform one. It is now 18%. It may be further reduced in future. It’s a welcome step because a lot of transparency will be there.
Q. What will be its impact on farmers?
Ans. One thing is that now the major problem is farmers’ input cost. Farmers input cost is getting
reduced day by day. I was working with Rashtriya Chemical Fertilizer. I know urea industry very well. Previously there happens to be huge line, lathi charges, huge black marketing of urea. Since last 3-4 years, there is not a single queue. Now the introduction of GST, material will be available everywhere. Farmer will be getting in his finger tips and with a lower price. So it will be ultimately affecting their input cost in a positive manner. This particular message has to be passed on to the farmers. I think everybody in this agriculture field should educate the farmer how they are benefited by this.
Q. How will GST affect business at Hindustan Insecticides Ltd (HIL)?
Ans. HIL’s business strategy is unaffected as on date due to the introduction of GST. Rather than it is very easy for us to go to different states with a single price mechanism, crossing the borders without any Octrai. It means transportation period will be reduced. Now we welcome this step because there will be no held up in boarder gates at least. HIL with the help of agriculture ministry will be spreading the awareness among the farmers regarding judicious use of pesticides. When demonetization started, along with training programmes, we were having one session on cashless economy. Now we will be educating farmers about the positive side of the GST.