GST Slashed to Boost Farm Mechanization: Ministers Urge Direct Farmer Benefits

Agriculture Minister Shivraj Singh Chouhan urged equipment manufacturers to relay the newly reduced GST benefits to farmers, highlighting significant price reductions on farm machinery effective September 22. The ministry is advancing mechanization, enhancing productivity, and reducing costs, supported by awareness campaigns and reduced rates for Custom Hiring Centers.

Agriculture Minister Shivraj Singh Chouhan convened a meeting with top farm equipment manufacturers, emphasizing the need for them to pass on the benefits of the recent reduction in GST to farmers. The reduced GST rates, effective from September 22, will decrease from previous rates of 18% and 12% to 5%, directly benefiting the agricultural community.

Chouhan highlighted how the price of various tractors will drop significantly due to the GST cut. A 35 HP tractor will see a price decrease of Rs 41,000, with reductions for other tractor models ranging up to Rs 63,000 for a 75 HP tractor. Additionally, machinery such as rice transplanters and threshers will become considerably cheaper, enhancing the profitability for farmers across the board.

The minister stressed the importance of manufacturers and dealers passing these savings to farmers, ensuring the advantages of reduced GST aren't lost in the supply chain. A comprehensive awareness campaign is planned to inform farmers about these benefits, with efforts to ensure machines at Custom Hiring Centers are also offered at reduced rates, aligning with the Prime Minister's push for increased agricultural mechanization.