Ensure GST benefits reach farmers, Agriculture Minister tells farm equipment & tractor makers

Agriculture Minister Shivraj Singh Chouhan has asked farm equipment and tractor manufacturers to ensure that the benefits of the recent Goods and Services Tax (GST) cut are passed on directly to farmers. The minister held a meeting with industry associations on Friday, stressing that the reduced rates, which take effect from September 22, could lower the cost of tractors by up to Rs 63,000 and other machines by several thousand rupees, ANI reported.

GST cut on farm machinery

The GST on agricultural machinery has been cut from 18 per cent and 12 per cent to a uniform 5 per cent. The Agriculture Ministry said the reduction is aimed at making equipment more affordable and promoting mechanisation in farming.

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For tractors, the cut translates into price drops of about Rs 41,000 on a 35-horsepower model, Rs 45,000 on a 45-HP unit, Rs 53,000 on a 50-HP machine and nearly Rs 63,000 on a 75-HP tractor. Smaller horticulture tractors will also be cheaper by around Rs 3,000.

Among implements, rice transplanters will cost about Rs 15,400 less, threshers with four-tonne per hour capacity will be cheaper by Rs 14,000, while a 7.5 HP power weeder will see a reduction of nearly Rs 5,500.

Farmer-first approach

Chouhan told companies and dealers that these benefits must reach farmers without delay. "This price reduction offers substantial benefits to our farmers. However, it's essential that companies and their dealers pass this benefit on directly," he said.

The ministry will also launch awareness drives through media and field campaigns to inform cultivators about the revised rates.

Industry associations on board

The meeting was attended by the Tractor and Mechanisation Association (TMA), All India Combine Manufacturers Association (AICMA), Agricultural Machinery Manufacturers Association (AAMA) and the Power Tiller Manufacturers Association of India. Chouhan said some representatives joined in person while others participated virtually. He emphasised that no middle layer should absorb the GST savings meant for farmers.

Push for wider mechanisation

Under the Viksit Krishi Sankalp Abhiyan, government teams will reach villages to inform farmers about the new benefits. Custom Hiring Centres (CHCs), which rent out machinery will also procure equipment at reduced prices, helping bring down rental charges.

Chouhan added that the ministry is exploring new areas such as mechanised cotton picking to further boost productivity. "The Prime Minister's focus has been on technology and promoting mechanisation in agriculture. It is because of this focus that agricultural production has increased significantly in the past decade," he said.

The ministry said the broader aim is to lower input costs, raise yields and speed up the adoption of technology in Indian agriculture.