The Chairman of the Twenty-Point Programme, Andhra Pradesh, has urged the Union Government to provide GST relief to farmers cultivating Subabul and Eucalyptus as agro-forestry crops.
In separate representations to Union Finance Minister Nirmala Sitharaman and Union Minister for Commerce and Industry Piyush Goyal, Mr. Dinakar highlighted the difficulties faced by farmers due to the prevailing GST treatment of their produce. The representations followed a memorandum submitted by the West Wood Farmer Producer Company Limited and other Farmer Producer Organisations (FPOs).
The FPOs said Subabul and Eucalyptus were cultivated mainly by small and marginal farmers and supplied largely to the paper and pulp industries. They said the 18% GST burden, coupled with increased imports of wood chips, had reduced demand for domestic produce and affected farmers’ incomes.
He sought recognition of Subabul and Eucalyptus as agricultural produce and exemption from GST. As an interim measure, he sought a reduction of the GST rate to 5%.
He also requested the constitution of a committee to examine the issue and recommend a permanent policy framework. He urged the Union Government to place the matter before the GST Council on priority.
