As the country gets ready for the Goods and Services Tax (GST) rollout on July 1, farmers are angry as the new tax regime would mean a higher burden. The GST Council has put fertilisers in the 12 per cent bracket, which is likely to impose a burden of ₹24,000 crore on farmers in Telangana and Andhra Pradesh.
Besides the hike in the tax rate on agricultural pumpsets, sprayers and drip irrigation implements, too, would make life difficult for farmers.
Demanding a rollback of the higher tax on fertilisers, a group of associations such as All-India Kisan Sabha (AIKS), Telangana Rythu Sangham, Rythu Swarajya Vedika and the Centre of Indian Trade Unions (CITU) have threatened to hold protests in front of the mandal headquarters on June 30.
“The two States top the list of States that use fertilisers. We use about 36 lakh tonnes of fertilisers in Telangana in a year. With the increased tax, prices are going to rise. This is likely to put a burden of ₹12,000 crore. Farmers in Andhra Pradesh, too, face a similar burden with the usage of fertilisers being similar,” S Malla Reddy, All-India VP of the All India Kisan Sabha (AIKS), told
The price of a 50-kg urea bag would go up to ₹334 from the present ₹298 after the implementation of GST. Similarly the price of a DAP bag will rise by ₹130 from ₹1,092 to ₹1,222 and 20:20 complex fertilisers by ₹106 from ₹880 to ₹986.
The tax rate on agri motors and sprayers has risen to 18 per cent from 6 per cent, he said.
The Telangana Ryhtu Sangham has estimated that the new tax slabs would result in an additional burden of ₹1,000 an acre on paddy, ₹1,800 on cotton, and ₹3,500 on mirchi.
Several State governments have offered zero tax on micro nutrients. But the GST Council has levied a tax of 12 per cent, he alleged.
The Rythu Swarajya Vedika says tenant farmers are going to be hit hardest. “The majority don’t get institutional credit. Any additional burden in the form of GST would make them more dependent on moneylenders,” he said.