New Delhi. As the GST is set to be implemented from 1st July 2017, both the organic farmersand the organic food industry appears apprehensive about this new taxation system, under GST,which is a four to six fold tax increase on some of the critical bio-inputs from 0% – 5% current rates to flat GST rates of 18%. In an online survey done by ICFA over the last two weeks reveals the fear amongst the exporters of organic food that the increased production cost may cost them international market,
while farmers are apprehensive about the increased production cost, which they may not be able to recover from the buyers. Equally concerned sounded the producers of bio fertilizers and bio-pesticides, saying that lower GST rates on chemical fertilizers @12% will push farmers to prefer chemical products over bio, defeating the national vision of establishing India as the Organic Hub of the World.