You are here: Home » Companies » Industry
Business Standard

Pesticide industry seeks cut in excise duty

BS Reporter  |  Mumbai/ Ahmedabad 

has finally come out in open and demanded cut in central excise on pesticides in the upcoming Union budget for 2007-08.
Agrochemicals Policy Group (APG), a representative body of the agriculture chemicals industry, has written to the Union finance minister requesting him to cut the central excise on pesticides from present 16 percent to 8 per cent from the next financial year.
S Kumarasamy, APG chairman, said in a presentation before media that the heavy central excise duty was a burden on the farmers.
APG has made several pleas to the Centre over the last three years seeking reduction of the excise duty on pesticides and related chemicals to lessen the burden on farmers.
APG claims that the agriculture produce worth Rs 90,000 crore was lost during the last one year due to pests, diseases and weeds.
Kumarasamy said pesticides are important and integral part of intensive agriculture. By controlling insects, diseases and weeds, pesticides protect the investments made by farmers.
Rajju Shroff, chairman and managing director, United Phosphorus Limited and active member of APG, said that the global pesticide was as big as Rs 150,000 crore in size whereas Indian pesticide remained at just Rs 7000 crore.
He blamed it mainly on higher central excise. He claimed that the anti pesticide campaign being run by some NGOs was making the situation worse for the as well as farmers.
He said APG had taken a series of measures to educate the farmers on the safe and judicious use of pesticides.
APG is working with one of the leading group of NGO's called Confederation of NGOs in Rural India in this regard.

First Published: Fri, February 16 2007. 00:00 IST