Noida: National Fertilizers Limited (NFL), a leading public sector undertaking under the Ministry of Chemicals and Fertilizers, has lauded the recent Goods and Services Tax (GST) reforms announced by the government, terming them a game-changer for India’s fertilizer sector.
Major GST Rate Cuts on Key Fertilizer Inputs
Under the revised GST regime, the tax on essential raw materials used in fertilizer manufacturing — including Ammonia, Sulphuric Acid, and Nitric Acid — has been reduced from 18% to just 5%. Additionally, the GST on micronutrients has also been slashed from 12% to 5%.
According to NFL, these changes will significantly lower input costs, making the domestic production of fertilizers more viable and competitive. The company expects this to lead to improved supply, reduced dependency on imports, and timely availability of fertilizers to farmers across the country.
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Direct Benefits to Farmers & Sustainable Agriculture
This reduction in GST will also make fertilizers more affordable for farmers, enhancing their access to quality inputs. Notably, the cut in GST on micronutrients aligns with the objectives of the PM-PRANAM Scheme (PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth).
NFL emphasized that this move will encourage the adoption of sustainable farming practices, promote balanced nutrient use, and support the government’s ongoing Natural Farming Mission aimed at ensuring the long-term health of soil and crops.
Supporting Balanced and Sustainable Fertilizer Use
With chemical fertilizer usage on the rise in several regions, the new GST rates are expected to act as an incentive for states and union territories to shift towards more organic and environment-friendly alternatives.
NFL stated that the reform not only supports the economic interests of the fertilizer industry, but also reinforces India’s commitment to sustainable agriculture and food security.
About NFL
NFL is a Navratna Central Public Sector Undertaking under the administrative control of the Ministry of Chemicals & Fertilizers. The company is engaged in the manufacturing and marketing of chemical fertilizers and other agricultural inputs, playing a key role in India’s food security mission.
