ACFI Advocates for Reduced Pesticide Import Duty in Upcoming Union Budget

The Agro Chem Federation of India (ACFI) is urging the Indian government to reduce the import duty on pesticides from 10% to 5% in the upcoming Union Budget for 2026-27. This proposal aims to alleviate the financial burden on farmers and enhance their access to modern crop protection technologies. ACFI argues that the current import duty and the Goods and Services Tax (GST) structure, which imposes an 18% GST on pesticides compared to a 5% rate on fertilizers, creates a significant disparity that adversely affects small and marginal farmers, who constitute over 85% of the farming community in India.

ACFI Seeks Reduction in Pesticide Import Duty to 5% in India Ahead of Union Budget 2026ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costsKerala Budget 2026-27 is one that seeks fiscal stability amid demographic transitionKerala Budget 2026-27: A balanced, realistic and practical Budget

Dr. Kalyan Goswami, Director General of ACFI, emphasized that pesticides are essential for protecting crops and ensuring yield security. He stated, “We suggest reducing the import duty from 10% to 5% to ensure that farmers receive the benefit of newer technologies.” ACFI believes that this reduction should be part of a broader agricultural strategy that supports farmers in adopting cost-effective practices.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costs

The ACFI's representation highlights the critical inconsistency in the taxation of agricultural inputs. The higher GST burden on pesticides leads to increased cultivation costs, which in turn reduces the affordability and adoption of essential crop protection solutions. Dr. Goswami noted that maintaining two separate GST slabs undermines the principle of neutrality within the GST framework. He proposed that the GST on pesticides be reduced to 0% or aligned with fertilizers at 5% to ensure fairness across essential agricultural inputs.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costsACFI Seeks Reduction in Pesticide Import Duty to 5% in India Ahead of Union Budget 2026Kerala Budget 2026-27 is one that seeks fiscal stability amid demographic transitionKerala Budget 2026-27: A balanced, realistic and practical Budget

In its representation, ACFI acknowledged the government's ongoing efforts to empower farmers through various schemes, subsidies, and reforms. However, it called for additional measures to further support farmers in cultivating more cost-effectively. The organization underscored the need for a wider range of cost-effective products to address changing cropping patterns and agroclimatic conditions.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costs

While ACFI's proposal is aimed at benefiting farmers, some critics argue that reducing import duties and taxes may impact government revenue, which is crucial for funding other agricultural and welfare initiatives. Concerns have also been raised about the potential environmental implications of increased pesticide use if access to these products is expanded without adequate regulations.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costs

The Union Budget for 2026-27 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2026. The outcome of ACFI's proposals will be closely monitored, as they could significantly influence the agricultural landscape and the economic viability of farming in India.

ACFI Seeks Reduction in Pesticide Import Duty to 5% in India Ahead of Union Budget 2026

• “We believe that the decision should be made in the context of India’s overall agricultural strategy,” said Dr.” — Dr. Kalyan Goswami, Director General, Agro Chem Federation of India.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costs

• “In alignment with the 2025 GST reforms’ objective of rationalisation and fairness, we humbly submit that the GST on pesticides may kindly be reduced to 0 per cent (exempt) as an essential agricultural input, or at least aligned with fertilisers at 5 per cent GST, ensuring parity across essential farm inputs,” — Dr. Kalyan Goswami, Director General, Agro Chem Federation of India.

ACFI urges Budget 2026-27 to slash pesticide import duty to 5% to cut farmer costs