The Untold Story of India’s Isabgol Export — Stuck in GST Trouble | BIZTALK

Описание: India is the world’s largest producer of Isabgol — the psyllium husk that’s known as the age-old natural remedy for constipation and digestive health.
From Rajasthan’s farmlands to Gujarat’s processing units, this humble crop powers a global industry worth over ₹3,500 crore.

But behind this export success lies a growing crisis — a tax confusion that has brought India’s Isabgol industry to its knees.

After the implementation of GST in 2017, the classification of Isabgol seeds became unclear.
While fresh seeds were declared tax-exempt, dry processed seeds — the ones used for export — were placed under 5% GST.
Processors began paying GST to stay compliant, but their refunds got delayed, blocking huge amounts of working capital.

This tax ambiguity created a domino effect:
▪️ Processors stopped procurement.
▪️ Farmers couldn’t sell their harvest.
▪️ Exporters faced order cancellations.
▪️ India’s reputation in the global market began to decline.

To make matters worse, the US imposed a 25% import tariff on Isabgol — hurting India’s price competitiveness even further.

Today, the industry that once exported over ₹3,500 crore worth of natural fiber faces a liquidity crunch, delayed payments, and policy uncertainty.

But every crisis also brings opportunity.

The Isabgol industry can bounce back if India takes these key policy steps:
🔹 Define Isabgol clearly under the Essential Agro Export category — tax-free.
🔹 Simplify and fast-track GST refunds to unblock working capital.
🔹 Offer export incentives to counter global tariffs.
🔹 Build a traceability framework (from seed to export) for better regulation.

Isabgol is more than just a health supplement — it’s a farmer’s livelihood, a processor’s business, and a silent contributor to India’s export economy.

This film uncovers how tax confusion turned a ₹3,500 crore success story into a struggle — and what India can do to fix it.

🎥 Watch till the end for solutions, hope, and insights that could help revive India’s natural export industry.