Union Agriculture Minister Shivraj Singh Chouhan hailed Prime Minister Narendra Modi's leadership for delivering on promises made to the people of the country, saying the recent Goods and Services Tax (GST) rate cuts will bring enormous relief to the agriculture sector. Speaking at a press conference, Chouhan emphasised that the government's commitment is to reduce the cost of farming while boosting production. Notably, the central government has announced that agricultural equipment will now be moved from the 18 per cent GST slab to the 5 per cent slab, keeping in mind the interests of millions of farmers across the country.
"Our resolve is to lower the input cost and increase farm output in the agriculture sector... When production rises and costs fall, the profits of farmers will automatically grow... The GST reforms made recently will directly benefit farmers across the country... The reduction of GST on agricultural machinery including tractors, harvesters and other tools from 18 per cent to 5 percent will prove to be a boon for the farming community," Chouhan added. The minister further said that women Self-Help Groups (SHGs) are contributing significantly in sectors like handicrafts, handmade goods, leather products, and dairy. Many women associated with these groups have now become "Lakhpati Didis" and their lives are witnessing positive transformation, he added.
Sharp price reductions on tractors and other equipment
With the GST cut, the prices of several agricultural machines have dropped significantly. Farmers are set to save thousands of rupees on essential equipment.
| Equipment | Savings (Approx) |
| 35 HP Tractor | Rs 41,000 |
| 45 HP Tractor | Rs 45,000 |
| 50 HP Tractor | Rs 53,000 |
| 75 HP Tractor | Rs 63,000 |
| Power Tiller (13 HP) | Rs 11,875 |
| Paddy Transplanter (4-row, walk-behind) | Rs 15,400 |
| Multi-crop Thresher (4 tonnes) | Rs 14,000 |
| Power Weeder (7.5 HP) | Rs 5,495 |
| Seed-cum-Fertiliser Drill (11 tines) | Rs 10,500 |
| Seed-cum-Fertiliser Drill (13 tines) | Rs 3,220 |
| Harvester Combine | Rs 1,87,000 |
| Straw Reaper (5 feet) | Rs 21,875 |
| Super Seeder (8 feet) | Rs 16,875 |
| Happy Seeder (10 tines) | Rs 10,600 |
| Rotavator (6 feet) | Rs 7,812 |
| Square Baler (6 feet) | Rs 93,750 |
| Mulcher (8 feet) | Rs 11,562 |
| Tractor Mounted Sprayer (400 litres) | Rs 9,375 |
GST rate cuts
It is to be noted here that the GST Council has approved a fresh two-tier tax structure of 5 per cent and 18 per cent which will come into effect on September 22. Union Finance Minister Nirmala Sitharaman made the announcement after the 56th GST Council meeting on Wednesday, calling it a step towards simplifying the tax system and boosting consumer confidence. Almost all personal use items will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.
