Agriculture minister asks farm equipment & tractor makers to pass on GST cut benefits to farmers

New Delhi [India] September 19 (ANI): Agriculture Minister Shivraj Singh Chouhan held a meeting with leading manufacturers of farm equipment on Friday and asked them to pass on the benefits of reduced GST, which is effective from September 22, to the farmers.
"The GST rates on agricultural machinery, which were earlier 18% and 12%, have now been reduced to 5%, and these significantly reduced rates will come into effect from 22nd September. This reduction will directly benefit the farmers," Chauhan said.
While giving information on how reduced GST will lower the prices of tractors, the minister said that for a 35 HP tractor, the price will come down by Rs 41,000, and for a 45 HP tractor, the reduction will be Rs 45,000. Similarly, for a 50 HP tractor, the benefit will be Rs 53,000, and for a 75 HP tractor, the reduction is Rs 63,000.
Even smaller tractors, such as those used for horticulture or inter-cultivation, will become Rs 3,000 cheaper. So, from the smallest to the largest tractors, the benefit ranges from Rs 3,000 to Rs 63,000. Machines like rice transplanters will be Rs 15,400 cheaper, Threshers (4-ton/hour capacity) will be Rs 14,000 cheaper while Power weeders (7.5 HP) will be Rs 5,495 cheaper.
"This price reduction offers substantial benefits to our farmers. However, it's essential that companies and their dealers pass this benefit on directly to the farmers, he reiterated. That's why we held today's meeting, and apart from that, we will run a massive awareness campaign through media, through your platforms, and other mediums, so that farmers are informed in real-time and receive these benefits," Shivraj Singh Chouhan said.
The minister met with associations which includes Tractor and Mechanization Association (TMA), All India Combine Manufacturers Association (AICMA), Agricultural Machinery Manufacturers Association (AAMA) and Power Tiller Manufacturers Association of India.
The minister said, "Representatives of these four bodies joined us some physically, some virtually. And I made a clear request: the benefit of reduced GST, effective from 22nd September, must be passed directly to the farmers. It should not be lost in the middle."
Under the Viksit Krishi Sankalp Abhiyan, the teams visiting villages will inform farmers properly about these benefits, so that they can make use of the reduced GST rates and improve their farming, reducing costs furthe.
"We are also planning one more step, Custom Hiring Centers (CHCs) will also get these machines at reduced prices, so the rental rates should also come down, and we will work towards that as well. The Prime Minister's focus has been on technology and promoting mechanization in agriculture, and it is likely because of this focus that in the last decade, agricultural production has increased significantly. So can it be said that this has been the main focus, especially with GST reductions, to accelerate mechanisation," Chouhan said.
The agirculture ministry is now exploring the next phase of mechanization, such as mechanized cotton picking and similar activities. The Minister said that the government is committed to increasing farmer productivity, reduce the cost of production, and promote mechanization. (ANI)