The All India Isabgol Processors Association (AIIPA) has announced that it will stop procuring psyllium (Isabgol) seeds from October 6, citing ongoing confusion over the Goods and Services Tax (GST) treatment. The move is expected to affect farmers in Gujarat and Rajasthan, the country’s key Isabgol-producing states.
The association said that until there is clarity on GST rates and compliance requirements, continuing procurement could create legal and financial complications for processors. This sudden halt has raised concerns among farmers who rely on timely procurement to sell their crops and manage cash flow.
Industry experts warned that delays in procurement could impact sowing and harvesting cycles, potentially affecting production in the coming season. Farmers have urged authorities to resolve the GST ambiguity swiftly to avoid disruptions in the Isabgol market.
“This is a critical period for psyllium farmers, and any delay in seed procurement could have far-reaching consequences,” said an industry representative. “Clear guidelines on GST are essential to maintain smooth operations and protect farmers’ interests.”
The AIIPA’s decision underscores the challenges faced by India’s agricultural sector when taxation policies intersect with commodity markets, highlighting the need for timely regulatory clarity to support farmers and processors alike.
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