A time-tested fungicide, the Bordeaux mixture is used to control fruit rot disease in arecanut plantation.
With the monsoon a fortnight away, arecanut growers are preparing to spray Bordeaux mixture, a fungicide containing copper sulphate, on their crops. However, the price of copper sulphate has increased because of higher copper scrap prices. Another reason for this hike is its classification: copper sulphate used in the Bordeaux mixture is categorised as an industrial product instead of a fertilizer. And, industrial products are taxed at 18 per cent GST, while fertilizers attract a lower 5 per cent GST.
A Kishore Kumar Kodgi, President of the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told businessline that copper sulphate is primarily used in agriculture, especially by small growers to control fungal diseases in crops such as arecanut, coffee, rubber, cardamom, pepper, and ginger. Despite being an essential agricultural input, copper sulphate is taxed at 18 per cent GST.
Same product, different rates
Multiple GST rates such as 5 per cent, 12 per cent, and 18 per cent on products used for the same agricultural purpose (crop nutrition and protection) create classification ambiguities and compliance challenges, he said.
Stating that the same product is being taxed under different rates and chapters, he said it leads to confusion and inconsistency in application. Explaining this, he said copper sulphate is listed under Chapter 28 with HSN code 28332500 as a sulphate, attracting 18 per cent GST. It is also categorised under the same chapter without a HSN code as a micro nutrient, attracting a GST of 12 per cent. When classified as a fungicide under Chapter 38 with HSN code 3808, it attracts 18 per cent GST.
Aligning GST on copper sulphate with other agricultural inputs would support farmers economically and promote better crop protection practices.
Stressing the need to introduce a distinct HSN code or unified classification for copper sulphate used in agriculture, he said this would eliminate interpretational issues and streamline taxation.
How it helps farmers
Bordeaux mixture is an important fungicide containing copper sulphate, and it is widely used by small and marginal farmers. Lower taxation would directly benefit them, he said, adding, uniform GST rate of 5 per cent for all agricultural inputs, including copper sulphate, would ensure fairness, clarity, and affordability.
A time-tested fungicide, the Bordeaux mixture is used to control fruit rot disease in arecanut plantation. Based on the intensity of rainfall, farmers resort to its spraying at least three-four times during the monsoon season, he said.
Price movement
Referring to the increase in the price of copper scrap and sulphuric acid used in the manufacture of copper sulphate, he said the copper scrap, which was available at around ₹400-450 a kg (plus GST) in 2020, costs around ₹850 a kg (plus GST) now. Sulphuric acid, which was costing around ₹9,000 a tonne in 2024, costs around ₹17,000 a tonne now.
This year, Campco has been selling Bordeaux mixture to its grower members at ₹330 a kg against ₹310 a kg last year. In addition, it offers a subsidy of ₹40 per kg for up to three kg to members who supplied at least 200 kg of arecanut to the cooperative in the previous year, he said.
Campco has been maintaining the price at the affordable level despite the increase in the price of copper scrap and sulphuric acid, he said. Meanwhile, private traders are selling it above ₹350 a kg, he said.
A reduction in GST rate from 18 per cent to 5 per cent would bring down the cost of Bordeaux mixture substantially to the farmers, he said.
Terming Bordeaux mixture as an effective fungicide for arecanut plantation, Gopalakrishna Vaidya, President of the Sirsi-based Totagars’ Cooperative Sale Society (another arecanut cooperative), said his cooperative has given a representation to the Karnataka Revenue Minister, Krishna Byre Gowda (who represents Karnataka in GST council), seeking reduction in GST rate.
Mahesh Hulkuli, Vice-President of the Shivamogga-based Malnad Areca Marketing Cooperative Society (Mamcos) Ltd, told businessline that the cooperative sector, including Campco and Mamcos, have been making representations to the ministries concerned seeking reduction in GST rates for the past five years. The major arecanut growing regions such as coastal Karnataka and Malnad Karnataka are heavily dependent on copper sulphate considering the heavy rainfall in the region.
Stating that a majority of small and medium farmers are dependent on this crop, he said a reduction in GST rates would help the cooperatives to sell this at a lower price to the farmers.
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Published on May 14, 2025
