The Union government’s decision not to reduce the Goods and Services Tax (GST) on copper sulphate has upset arecanut growers and cooperatives marketing arecanuts.
Only safeguard
Technical-grade copper sulphate, the key constituent of Bordeaux mixture, is an essential agricultural fungicide used almost entirely by small and marginal growers. It is the only proven effective safeguard against devastating crop diseases such as fruit rot (Mahali/Kole Roga) in arecanut and fungal diseases in other plantation crops like coffee, cardamom, rubber, and pepper.
“Since as early as 1910, when Dr. Leslie Coleman first investigated fruit rot disease in arecanut, no fungicide other than copper sulphate used in Bordeaux mixture has been found effective. It is a traditional, proven treatment for many diseases, in addition to being a soil health enhancer. In this context, the continued levy of 18% GST on technical-grade copper sulphate is unjust, insensitive, and unbearable for farmers already reeling under the burden of heavy rains, crop losses, and mounting input costs,” President, Central Arecanut and Cocoa Marketing and Processing Cooperative (CAMPCO) Ltd, told The Hindu.
“We fail to understand the rationale behind taxing technical-grade copper sulphate at 18%, while all other major fertilizers and farm inputs are taxed at only 5%,” he said.
Confusion
He said that copper sulphate is listed under Chapter 28 with HSN code 28332500 as a sulphate, which attracts 18% GST. It is also categorised under the same chapter as a micro-nutrient, attracting a 5% GST.
“This lack of uniformity, coupled with the absence of a distinct HSN Code for agricultural-grade copper sulphate, has opened the door for confusion, misinterpretation, and ultimately exploitation of farmers,” he said.
He said that the cooperative has appealed to the government to fix the GST at 5% on all copper sulphate manufactured under C1B/FCO 1985 licences and used for agricultural purposes.
“Introduce a separate HSN Code for technical-grade copper sulphate used in agriculture, clearly distinguishing it from industrial-grade copper sulphate,” he said.
He vice-president of the Shivamogga-based Malnad Areca Marketing Cooperative Society (MAMCOS) Ltd, said that leaders from the cooperative and farm sectors will meet Union Finance Minister Nirmala Sitharaman again to apprise her of the need to fix the GST on copper sulphate at 5%.
GST on paan masala
Referring to GST on Paan Masala fixed at 40%, the CAMPCO president said: “Since arecanut is the principal ingredient in paan masala, such taxation has unfairly reinforced the false and unscientific notion that arecanut itself is carcinogenic.”
Imposing 40% GST on paan masala will affect farmers in the long run though its impact may not be felt immediately, he said.
