National Fertilizers Limited (NFL) has welcomed India’s recent GST reforms, which are expected to provide a major boost to the fertilizer sector. The GST rates for essential inputs used in the production of nitrogenous and NPK fertilizers, including ammonia, sulphuric acid, and nitric acid, have been reduced from 18% to 5%. Rates on micronutrients have been cut from 12% to 5%.
This reduction is set to lower raw material costs for fertilizer companies, encouraging domestic production and ensuring timely availability of fertilizers. The reform is also expected to make fertilizers more affordable for farmers, supporting agricultural productivity and growth.
The lower GST on micronutrients will further promote the PM-PRANAM Scheme (Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth), which encourages states and union territories to reduce chemical fertilizer use by adopting sustainable farming practices and organic alternatives. This aligns with the government’s Natural Farming Mission and supports the balanced use of fertilizers, ensuring long-term soil and plant health.
These reforms are expected to benefit farmers and Farmer Producer Organizations (FPOs) directly while reinforcing India’s commitment to sustainable and environmentally responsible agriculture.
