Budget 2020: FM Nirmala Sitharaman may announce import duty cut on raw material for fertiliser industry
Union Budget 2020: Reduced customs duty on base materials such as rock phosphate and sulphur which are used in producing di ammonium phosphate (DAP) would aid in boosting local manufacturing as well as cut import bill
- Feb 1, 2020,
- Updated Feb 1, 2020 10:14 AM IST
Finance minister Nirmala Sitharaman is likely to announce cut in import duty on raw material used in the fertiliser industry in Union Budget 2020. The government is considering this step to strengthen local manufacturing in India.
Reduced customs duty on base materials such as rock phosphate and sulphur which are used in producing di ammonium phosphate (DAP) would aid in boosting local manufacturing as well as cut import bill, sources told PTI.
Presently, there is an import duty of 5 per cent on such imports and India imports about 95 per cent of its DAP requirement from global markets. The country also imports about 30 per cent of its urea requirements.
During April-December 2019-20, the country's crude and manufactured fertiliser imports grew by 8.47 per cent to $6.2 billion.
The commerce ministry has suggested its finance counterpart to rationalise basic customs duty on over 300 items to boost domestic manufacturing and cut in the rising import bill.It has proposed the removal of import duty on products like waste paper, and wood pulp which is currently 10 per cent and 5 per cent, respectively.
ALSO READ: Budget 2020 Date: When is Union Budget, Expectations from Modi govt, Time, where to watch
Finance minister Nirmala Sitharaman is likely to announce cut in import duty on raw material used in the fertiliser industry in Union Budget 2020. The government is considering this step to strengthen local manufacturing in India.
Reduced customs duty on base materials such as rock phosphate and sulphur which are used in producing di ammonium phosphate (DAP) would aid in boosting local manufacturing as well as cut import bill, sources told PTI.
Presently, there is an import duty of 5 per cent on such imports and India imports about 95 per cent of its DAP requirement from global markets. The country also imports about 30 per cent of its urea requirements.
During April-December 2019-20, the country's crude and manufactured fertiliser imports grew by 8.47 per cent to $6.2 billion.
The commerce ministry has suggested its finance counterpart to rationalise basic customs duty on over 300 items to boost domestic manufacturing and cut in the rising import bill.It has proposed the removal of import duty on products like waste paper, and wood pulp which is currently 10 per cent and 5 per cent, respectively.
ALSO READ: Budget 2020 Date: When is Union Budget, Expectations from Modi govt, Time, where to watch