Even as the farmers, who were facing severe cash and credit crisis in all the banks for taking up cultivation during kharif, the fresh Goods and Service Tax (GST) from Saturday has come as another blow to the community.
The farmers, who reaped riches during the Rabi season and their harvested amount was deposited in the banks after procurement by the agencies, they could not withdraw the same for taking up kharif operations due to liquidity crisis in all the banks in the undivided Karimnagar district. The imposition of 18% GST on fertilizers, pesticides and micro-nutrients has come as a rude shock to the farming community.
All the prices of fertilizers, pesticides and micro-nutrients would be increased burdening the farmers.
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Earlier, the fertilizers were sold at 5% VAT, but it would now be sold with 12% GST. Similarly, pesticides which were having 5% VAT have been increased to 18% GST.
The 50 kgs of DAP bag which was now costs ₹ 1,092 will cost ₹ 1,168 from Saturday with an increase of ₹ 76 per bag. The urea bag now at ₹ 298 will cost ₹ 318 with an increase of ₹ 20 per bag. The potassium bag cost has increased from ₹ 577 to ₹ 617 per bag. The prices of complex fertilizers has also increased.
With the GST, the farmers have to shell out additional ₹ 40 crore to ₹ 50 crore for the purchase of fertilizers and pesticides for taking up cultivation during every crop season.
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Expressing concern over the neglect of farming community by both the State and Central governments, a farmer Malla Reddy flayed the Government for burdening the farmers with the imposition of the GST.
He said that the Government should increase the minimum support price of produce too and remove the GST on the fertilizers and pesticides.