NABARD ARDNABARD Grade AState AAO
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Context:
India’s marine fisheries sector witnessed a major transformation in 2025!Tap to play · from the C4S channel
The Biological Agri Solutions Association of India (BASAI) has urged the government to clarify GST applicability on biostimulants, which are vital for sustainable agriculture and climate resilience.
What Are Biostimulants?
- Definition: Substances or microorganisms that enhance plant growth, nutrient uptake, and stress tolerance.
- Regulation: Brought under the Fertiliser (Control) Order (FCO), 1985 since 2021.
- Approved Products: As of August 2025, the government has officially notified and approved 146 biostimulant products under FCO.
Key Issues Highlighted by BASAI
- GST Confusion
- At present, some authorities classify biostimulants under 5% GST, while others under 18% GST.
- Notices have recently been issued to some companies, asking them to pay 18% GST.
- BASAI argues they should be taxed at 5%, similar to fertilizers, to make them affordable for farmers.
- HSN Code Ambiguity
- Lack of clarity on the correct Harmonized System of Nomenclature (HSN) code for biostimulants is causing compliance issues.
- Invalidation of Provisional Registrations
- Government recently invalidated 8,000+ provisional registrations of biostimulants.
- Only notified products remain valid; others must align with standards to re-enter the market.
Significance
- Promotes sustainable farming and reduces dependency on chemical fertilizers.
- Helps farmers combat climate change challenges (heat, drought, soil degradation).
- A GST clarification will boost industry growth and farmer adoption.
