Mysuru MP Yaduveer Krishnadatta Chamaraja Wadiyar on Tuesday thanked the Central government for continuing exemption of GST on black pepper. “It is great news for the black pepper growers of Kodagu,” the MP said, while sharing the news of the Centre’s decision.
Mr. Wadiyar, who represents Mysuru and Kodagu in the Lok Sabha, had met Finance Minister Nirmala Sitharaman a few months ago and sought continuation of GST exemption for black pepper, elaborating reasons for his appeal, on behalf of the growers from Kodagu district where it is predominantly cultivated. The MP had explained to the Finance Minister the problems faced by black pepper growers over the imposition of GST on their produce.
The MP took up the issue after a grower in Gonikoppal in Kodagu got a notice for paying a GST of ₹1 crore. The grower, along with the representatives of the Karnataka Planters’ Association, the Karnataka Growers’ Association and the Kodagu Planters’ Association, met the MP and made the appeal for relief from the GST. During his meeting, the MP met the Finance Minister and explained the concerns of the growers, especially in Kodagu.
The decision will benefit not just the growers in Kodagu but also in a few other districts, including Hassan and Chikkamagalur.
The planters have also thanked the MP for making efforts in reaching out their concerns to the Finance Minister and getting the GST on the crop exempted.
“On behalf of the growers from Kodagu and other places, I express my gratitude to the Finance Minister for considering his appeal and helping the growers, exempting GST on black pepper,” the MP said.
During his last meeting with Finance Minister, the MP had highlighted black pepper’s classification as agricultural produce and potential negative impact on farmers and exports if GST was imposed. Mr. Wadiyar had told the Finance Minister that the people from his constituency, primarily from Kodagu, brought to his attention the notices they received from the GST office in Mysuru stating that the sale of pepper grown at their plantation is subject to GST and that the planters also need to be registered under the GST Act.
In his memorandum, the MP said the GST notice stems from a misunderstanding about the nature of the drying process. The growers said the drying process does not alter the essential characteristics of pepper. It is primarily a preservation technique. The imposition of GST on the products could have significant negative consequences for the plantation districts of Karnataka, including Kodagu, Hassan, and Chikkamagaluru, as well as growers in Kerala and Tamil Nadu. It could lead to increased costs, reduced profit margins, and potential job losses. Additionally, it could negatively impact exports, reducing India’s competitiveness in the global market, Mr. Wadiyar had said in his memorandum.
