# GST rate: Fertilizers to come under 12% tax slab, prices likely to rise

> India's GST Council set a 12% goods and services tax rate on fertilizers, up from the current 4-8%, effective under the new regime. Retail urea could rise by Rs300-400 per tonne, and DAP could rise up to Rs3,000 per tonne in states that currently levy no tax. A proposed 5% GST on road transport could add further cost.

- Date: 2017-05-26 · published 2017-05-26T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/71317-gst-rate-fertilizers-to-come-under-12-tax-slab-prices-likely-to-rise
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Higher Indian fertilizer retail prices could raise farm costs and push government subsidy burdens up, potentially increasing import demand for urea and DAP to offset domestic tightness.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2021-10-20 | [Rice Prices Set to Rise as Fertilizer Rally Drives Up Farm Costs - Caixin Global](https://feedsoft.ai/events/44642-rice-prices-set-to-rise-as-fertilizer-rally-drives-up-farm-costs-caixin-global.md) | -2.0% | +9.0% |
| UREA | 2025-10-13 | [Fertilizer prices rise amid China export limits](https://feedsoft.ai/events/22327-fertilizer-prices-rise-amid-china-export-limits.md) | -0.5% | +2.8% |
| UREA | 2026-10-28 | [U.S. Corn Growers Urge Faster Fertilizer Antitrust Action as Prices Keep Rising - Fertilizer Daily](https://feedsoft.ai/events/293-u-s-corn-growers-urge-faster-fertilizer-antitrust-action-as-prices-keep-rising.md) | -1.3% | — |
| UREA | 2021-12-08 | [Farmers ask US Justice Department to investigate fertilizer price spikes \| Reuters](https://feedsoft.ai/events/43923-farmers-ask-us-justice-department-to-investigate-fertilizer-price-spikes-reuters.md) | +0.1% | -18.9% |
| UREA | 2021-12-13 | [The Complex Truth About Fertilizer Prices - The Fertilizer Institute](https://feedsoft.ai/events/43506-the-complex-truth-about-fertilizer-prices-the-fertilizer-institute.md) | 0.0% | -12.1% |
| DAP | 2021-10-20 | [Rice Prices Set to Rise as Fertilizer Rally Drives Up Farm Costs - Caixin Global](https://feedsoft.ai/events/44642-rice-prices-set-to-rise-as-fertilizer-rally-drives-up-farm-costs-caixin-global.md) | +0.0% | +4.3% |
| DAP | 2025-10-13 | [Fertilizer prices rise amid China export limits](https://feedsoft.ai/events/22327-fertilizer-prices-rise-amid-china-export-limits.md) | -0.2% | -4.7% |
| DAP | 2020-09-29 | [IFFCO Says It Does Not Plan To Raise Prices Of DAP And NPK Fertilizers](https://feedsoft.ai/events/51415-iffco-says-it-does-not-plan-to-raise-prices-of-dap-and-npk-fertilizers.md) | +1.7% | +1.7% |

## Sources

- livemint.com: https://www.livemint.com/Politics/KQOY1h7dQrkOdbQKrMAI2M/GST-rate-Fertilizers-to-come-12-tax-slab-prices-likely-to.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.