Chouhan’s GST Push
New Delhi
Agriculture Minister Shivraj Singh Chouhan on Friday urged farm equipment and tractor manufacturers to ensure farmers directly benefit from the recent reduction in Goods and Services Tax (GST). The new rates, effective September 22, lower GST on agricultural machinery from 18% and 12% to just 5%.
Chouhan explained how the move will reduce equipment costs significantly. For tractors, prices will drop by ₹41,000 for a 35 HP model, ₹45,000 for a 45 HP, ₹53,000 for a 50 HP, and ₹63,000 for a 75 HP tractor. Smaller horticulture tractors will become cheaper by ₹3,000. Among other machines, rice transplanters will cost ₹15,400 less, threshers ₹14,000 less, and power weeders nearly ₹5,500 less.
“This price cut provides a direct advantage to farmers. But it is essential that companies and dealers transfer these benefits fully, without holding them back,” the minister stressed. He added that awareness campaigns will be run through media and outreach programs to ensure farmers know about the reductions.
Chouhan met representatives from the Tractor and Mechanization Association, All India Combine Manufacturers Association, Agricultural Machinery Manufacturers Association, and Power Tiller Manufacturers Association of India. He insisted that the reduced GST benefit must reach farmers without delay.
The minister also said Custom Hiring Centers will get machines at reduced costs, which should lower rental rates for farm equipment. He highlighted Prime Minister Narendra Modi’s focus on agricultural mechanization as a driver of higher production over the last decade.
Looking ahead, the ministry is exploring advanced mechanization, such as cotton-picking machines, to boost productivity and reduce farming costs.
