Coromandel International: To compete with importers, the GST rate should be at 5%

GST rates on phosphoric acid have been cut to 12 percent from 18 percent.

Discussing the impact of the above development, A Vellayan, CMD, Coromandel International said if the government really wants to incentivize Make in India and domestic fertilizer companies over imports then the rate should be competitive at 5 percent.

Moreover, the Input Tax Refund money is still stuck in the system, which is impacting the cash flow of the companies.

The domestic companies which make in India, the cycle is much longer than for an importer who just opens an LC and sells, said Vellayan.

Moreover, the rate reduction in bio-pesticides is not very material for their industry.

When asked about his expectations from the Budget 2018, which is expected to be farm focused, he said one, they should link MNREGA subsidy to labour costs because the biggest cost element in farming is labour.

Two, the subsidy is weighed towards tractors because tractors are only hauling, instead it should be directed towards implements like rotavators, tillers, planters, applicators etc.

And three, the MSP linkage should become flexible like it is for sugar industry.