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India: New tax may negatively impact organic farming

The implementation of the goods and service tax (GST) may have an adverse impact on organic produce, according to exporters and industry views cited in an online survey by the Indian Council of Food and Agriculture (ICFA).

The current tax rates of 0-5 per cent on bio-inputs are set to rise to a flat GST rate of 18 per cent.

As a result, exporters of organic food are worried that the higher production cost may hit their international prospects.

Farmers, too, are apprehensive about the higher production cost, which they may not be able to recover from buyers, ICFA said in a release.

Read more at The Hindu
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