Archive · 25 Aug 2026
Farmers Seek GST Relief for Subabul and Eucalyptus Crops
Some farmers grow Subabul and Eucalyptus on their agricultural land.
These trees are mainly sold to paper and pulp factories.
Farmer groups say an 18 percent GST on wood pulp is making it harder for their products to compete.
They also say imports have increased since November 2025.
Because of this, factories may be buying less from Indian farmers.
Farmers’ incomes have therefore been affected, according to the groups.
Lanka Dinakar asked the Union government to remove GST from these crops.
He also asked officials to officially treat them as agricultural produce.
Lanka Dinakar urged the Union government to exempt Subabul and Eucalyptus grown on agricultural land from GST.
He made separate representations to Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal.
Farmer Producer Organisations said small and marginal farmers supply these crops mainly to the paper and pulp industry.
They claimed an 18 percent GST on wood pulp and increased imports since November 2025 have reduced domestic demand.
Dinakar said the lower demand has affected farmers’ incomes and sought classification of the crops as agricultural produce.
- Who
- Lanka Dinakar, Farmer Producer Organisations, and farmers cultivating Subabul and Eucalyptus.
- What
- A request was made for GST exemption and agricultural-produce classification for Subabul and Eucalyptus grown on agricultural land.
- When
- Representations were made after Farmer Producer Organisations reported increased imports since November 2025.
- Where
- The request was made from Amaravati to the Union government.
- Why
- The 18 percent GST on wood pulp and increased imports were said to have reduced domestic demand and affected farmers’ incomes.
- Request
- GST exemption for Subabul and Eucalyptus grown on agricultural land.
- Advocate
- Lanka Dinakar, chairman of the Twenty Point Programme Implementation Committee.
- Ministers approached
- Union Finance Minister Nirmala Sitharaman and Union Commerce and Industry Minister Piyush Goyal.
- GST rate cited
- 18 percent on wood pulp.
- Main buyers
- The paper and pulp industry.
- Farmers affected
- Small and marginal farmers, according to Farmer Producer Organisations.
- Import trend
- Farmer groups reported increased imports since November 2025.