Flip side of GST and Border liberalization

Farm sector is totally depend on input which include seed, pesticide, fertilizer, farm chemical,
machineries including tractors. Though farm sector is exempted from all GST slabs but input cost has
increased considerably. This is the main reason that output price has increased and will increase
further more.

Though farmer is crucial stakeholder amongst all other stakeholder irony is he has no control over
what he produce, all the price regulated by other player. All the increased cost of input are eventually
absorbed by farmer. In this case revenue of farmer remain constant but considerable change in cost
leads to reduction in profit figure.

All the above effect lead us to one common problem which is inflation. As agriculture input cost has
raised which has increased price of agriculture produce. Agriculture produce are main input in some
industries like food industry, cosmetic industry, processing industry etc. increase in price of raw
material to this industry ultimately affect increase in their price of product.

There is proposal of transportation tax (5%) on road transport and agriculture is fully depend on supply
chain this will increase price of retailing of agriculture inputs.