Union Minister for Agriculture and Rural Development, Shivraj Singh Chouhan, announced that the Central Government has reduced the Goods and Services Tax (GST) on several agricultural inputs and products from 18% to 5%. This move aims to lower farming costs and strengthen the rural economy, offering direct benefits to farmers.
The tax cut will significantly reduce the prices of tractors, power tillers, threshers, power weeders, happy seeders, super seeders, mulchers, seed-cum-fertilizer drills, and paddy transplanters. Farmers can now save substantially on machinery purchases:
35 HP Tractor – Approx. ₹41,000 savings
45 HP Tractor – ₹45,000 savings
50 HP Tractor – ₹53,000 savings
75 HP Tractor – ₹63,000 savings
Similarly, other implements will bring farmers savings of ₹5,000 to ₹30,000. Additionally, the reduced tax on bio-pesticides and micronutrients will encourage natural and organic farming. Fertilizer costs will also fall as GST on raw materials such as ammonia, sulphuric acid, and nitric acid has been reduced to 5%.
The Minister highlighted that GST has been removed on milk and cheese, making them more affordable for consumers while increasing incomes for farmers, dairy producers, and livestock rearers. Lower taxes on butter, ghee, and packaged milk products are also expected to raise demand for indigenous dairy items.
Women-led Self-Help Groups (SHGs) engaged in handicrafts, leather goods, and dairy products will benefit directly from tax relief, empowering rural women and improving their livelihoods.
GST cuts on processed fruits, vegetables, and dry fruits will help farmers add value to their produce and expand their market reach. The fisheries sector will also gain, as lower tax on processed and preserved fish will benefit fish farmers nationwide. Similarly, reduced GST on natural honey will boost earnings for beekeepers.
GST on energy-based equipment and drip irrigation systems has been reduced from 12% to 5%. This will make advanced irrigation tools more affordable, helping farmers conserve water, improve yields, and increase profitability.
Reduced taxes on cement and iron will cut the cost of rural infrastructure and housing projects under the Pradhan Mantri Awas Yojana. This will make it easier for low-income families to build homes and reduce expenses on schools, Anganwadis, Panchayat Bhawans, and other rural facilities.
A Boon for Farmers and “Lakhpati Didis” Minister Chouhan emphasized that these GST reforms will not only benefit farmers but also rural women entrepreneurs linked to schemes like “Lakhpati Didi.” Lower taxes will strengthen rural livelihoods, enhance employment opportunities, and drive growth in the rural economy.
