Proposal to increase customs duty to 20% on agrochemicals will hurt interests of farmers: Report
CropLife India, which describes itself as an association of 17 R&D driven crop science companies, has claimed in a media release that a proposal towards enhancement of customs duty on agrochemical formulations to 20%; would hurt the interests of the farmers of the country, in terms of higher costs of farming and non-availability of the newer products.
«The idea of doubling customs duty was being proposed based on ‘misinformation’; in the last couple of months, about the “huge” formulation imports in the country. However, the actual data of import proves otherwise,» said Croplife in the release.
Durgesh Chandra, Secretary General, CropLife Indiasaid,“Imported Formulations hardly constitute 20% of total imports of agrochemicals in India. Theproposal to increase custom duty on formulations will set the wrong precedent, signal uncertainty in ease of doing business, will question the stability of Indian policies and send out wrong signals for both foreign and Indian investment in this sector; apart from not achieving any significant financial benefit for the exchequer”.
«Almost all agrochemical formulations that are being imported are based on newer, safer and better chemistries; and provide farmers’ with a whole new range of products for fighting the pests and diseases. As such imported formulations largely pertain to new molecules that lend better sustainability, pesticides’ resistance management, and having favorable toxicity, environmental fate and safety to the users; taxing them at higher rates will discourage
