ADITYA RAJ DAS / New Delhi
Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan today emphasised that the recent GST rate cut on tractors and agricultural equipment should directly benefit farmers. Chairing a meeting with representatives of agricultural machinery manufacturers in the capital, Chouhan said the tax relief must not be absorbed midway by companies or dealers but should translate into lower costs for farmers.
The GST Council recently reduced the tax on tractors and farm machinery from 12% to 5%, making modern equipment significantly more affordable. Representatives from the Tractor and Mechanization Association, All India Combine Manufacturers Association, Agricultural Machinery Manufacturers Association, and the Power Tiller Association of India participated in the meeting, both physically and virtually.
The reduction is expected to bring substantial savings:
- Tractors: ₹41,000 to ₹63,000 cheaper, depending on horsepower.
- Power Tillers: Price cut of nearly ₹11,000.
- Harvesters: Savings of up to ₹1,87,500.
- Straw Reapers: Cheaper by around ₹21,875.
Chouhan highlighted that the revised prices will take effect from September 22, easing farmers’ financial burden by reducing both purchase and maintenance costs. He noted that the move will encourage mechanisation, improve farm productivity, and strengthen rural incomes.