GST burden for farmers

GST burden for farmers
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Highlights

With Goods and Service Tax (GST) coming into force from July 1, cultivation expenses are set to increase due to expected increase in price of fertilizers and pesticides. Farmers in delta region are a worried lot that they have to spend Rs 8,000 more for each acre from this kharif season due to implementation of GST.

Vijayawada: With Goods and Service Tax (GST) coming into force from July 1, cultivation expenses are set to increase due to expected increase in price of fertilizers and pesticides. Farmers in delta region are a worried lot that they have to spend Rs 8,000 more for each acre from this kharif season due to implementation of GST.

A farmer has to spend Rs10, 000 for preparing seed beds, watering, fertilisers and for hiring agriculture labour. “For preparation of seed beds, we have to use urea, apart from complex fertilisers and it will cost about Rs 5, 000 per acre,” said Guntaka China Venkata Reddy, a farmer from Nunna village near Vijayawada.

Till now, paddy farmers used to spend Rs 25,000 for each acre. Now, it may reach Rs 32,000 to Rs 35,000 due to the burden of GST.

“As many as three fertiliser bags will be used per acre and it will cost about Rs 10,000. With GST kicking in from July 1, price of fertilizers and pesticides are set to increase and we farmers will have to bear these additional costs,” he felt. Venkata Reddy lamented that even in the wake of increasing fertiliser and pesticide costs, the government has not increased the minimum support price for paddy. “It is still Rs 1,500 per quintal,” he noted.

Krishna Eastern Delta is in 13.07 lakh acres, as monsoons were early this year farmers are busy with preparing seed beds for July first week plantations.

Another farmer Mareedu Srinivasa Rao also opined that government should increase minimum support price for paddy. “Without enhancing paddy support price farmers cannot bear the investment,” he said and added that increasing cultivation costs might leave farmers with a loss of Rs 5,000 per acre in the kharif season.

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