Archive · 23 Sep 2025
GST Reforms Expected to Boost the Fertilizer Sector
The government has changed the Goods and Services Tax (GST) rules for fertilizers.
This means that companies that make fertilizers will pay less for the things they need to make them.
Also, the GST on important nutrients has been lowered.
This should make fertilizers cheaper for farmers.
These changes are expected to help fertilizer companies make more fertilizers and will help farmers.
The aim is also to encourage farmers to use fertilizers in a balanced way so they can keep their soil healthy and it will align with government's mission for natural farming.
The GST rates for essential inputs have been reduced.
The GST reduction will encourage the domestic production of fertilizers.
Fertilizers will become more affordable for farmers.
The reduction will encourage PM-PRANAM Scheme to reduce chemical fertilizer use.
It will promote the ‘Balanced Use of Fertilizers’.
- Who
- National Fertilizers Limited (NFL), farmers, and fertilizer companies
- What
- India's GST reforms are expected to boost the fertilizer sector.
- When
- The GST reforms have been implemented.
- Where
- India
- Why
- Reduced costs for raw materials will encourage domestic production, and make fertilizers affordable to farmers.
- GST Reduction
- From 18% to 5% on inputs (ammonia, sulfuric acid, nitric acid) and from 12% to 5% on micronutrients
- Beneficiary
- Fertilizer sector and farmers
- Impact on Production
- Encourages domestic fertilizer production due to reduced raw material costs
- Scheme
- PM-PRANAM (PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth) to encourage sustainable farming
- Goal
- Promotes balanced fertilizer use
