Farm Push
Pass on full GST cut benefits, Minister Chouhan tells farm equipment bodies
This story was originally published at 19:02 IST on 19 September 2025
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NEW DELHI – Agriculture Minister Shivraj Singh Chouhan on Friday chaired a meeting with representatives from farm equipment associations such as the Tractor and Mechanization Association, Agricultural Machinery Manufacturers Association, and Power Tiller Association of India, in an effort to ensure that the benefits of the GST rate cuts are passed on to farmers, according to a statement by the Ministry of Agriculture.
The GST rate on agricultural machinery has been reduced to 5% from the 12% and 18% brackets earlier, effective Sept. 22. This significant reduction is expected to have a widespread impact, making farm equipment more affordable for farmers, Chouhan said. According to him, the price reductions will be substantial, with prices likely to be reduced by INR 3,000 for a seed-cum-fertiliser drill to over INR 187,000 for a harvester combine cutter bar.
The government said it plans to widely disseminate information about such benefits through multiple communication channels to raise awareness among farmers. Chouhan emphasised that custom hiring centres must reduce rental rates to ensure affordability for farmers. Information about the GST rate reduction will also be communicated to farmers during the upcoming second phase of the 'Viksit Krishi Sankalp Abhiyan' for rabi crops, beginning Oct. 3.
Chouhan said suitable measures would be undertaken to strengthen farm mechanisation in the country and suggestions from manufacturer associations would be considered while framing future plans. He urged representatives to minimise the role of middlemen and ensure farmers directly receive the benefits of GST reforms, according to the statement. End
Reported by Pallavi Singhal
Edited by Avishek Dutta
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