The Union Budget 2022-23 has approved the Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, Government of India recommendations for separate HS Code Classification for Technical Grade Pesticides thereby moving Technical Grade products from Chapter 38 to Chapter 29. 

 

This was a long pending demand from the industry and industry associations and both the finance ministry and DCPC has taken a proactive step which will benefit domestic pesticide manufacturers in a big way. 

 

Presently, both Technical Grade products and Formulation products are classified under Chapter 38 and this creates problems when same customs duties are applied on both Technical Grade Pesticides (which are manufacturing use products) and Formulated Pesticides which are ready to use finished products.  

 

Commenting on separate HS Code Classification, Pradip Dave, President, Pesticides Manufacturers & Formulators Association of India (PMFAI) said, "We are sure, separate HS Code classification of Technical Grade Products and Formulation products will encourage indigenous manufacturing."

 

Above decision of government will help encouraging and increasing local production of agrochemicals/pesticides, boosting the vision of “Make in India” and “Aatmanirbhar” agrochemical sector, added Dave.