National Fertilizers Limited (NFL) has welcomed India’s landmark Goods and Services Tax (GST) reforms, calling them a major boost for the fertilizer sector. The government has slashed GST rates on critical inputs for nitrogenous and NPK fertilizer production such as Ammonia, Sulphuric Acid, and Nitric Acid from 18% to 5%. Additionally, the GST on micronutrients has been reduced from 12% to 5%.
This move is expected to cut raw material costs significantly for fertilizer companies, enhancing domestic production and ensuring timely availability of fertilizers at affordable prices. The reduction in GST on micronutrients is also expected to give a strong push to the PM-PRANAM Scheme (Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth), which promotes reduced chemical fertilizer use, sustainable farming practices, and organic alternatives.
By encouraging the balanced use of fertilizers, these reforms aim to safeguard soil health, improve crop sustainability, and directly benefit farmers and Farmer Producer Organizations (FPOs). The initiative also aligns with the government’s Natural Farming Mission, reinforcing long-term agricultural resilience.