Union Minister for Agriculture and Farmers’ Welfare & Rural Development Shri Shivraj Singh Chouhan today chaired an important meeting to discuss the latest GST (Goods and Services Tax) reforms for agricultural machinery, in New Delhi. Representatives from the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA and Power Tiller Association of India (PTAI), among others, participated both in person and virtually.

Speaking to media persons after the meeting, Shri Chouhan thanked Prime Minister Shri Narendra Modi for the GST rate cuts and shared the details of the discussions. He said that GST on agricultural machinery, earlier at 12% and 18%, has now been reduced to 5%, effective from September 22. This reduction will directly benefit farmers, the Minister said. He stressed that the Central Government has pledged to ensure an increase in farmers’ incomes, which requires both raising productivity and reducing costs, and mechanisation is vital to achieving both.

The Union Minister said that, during the meeting, all representatives of machine manufacturers associations were told that the reduced GST rates, effective from September 22, should directly benefit farmers with full transparency. Shri Chouhan said that the reduction in GST rates is a big step, which will have a widespread impact. Later, pointing out the significant price reductions, he said:

• A 35 HP tractor will now be cheaper by ₹41,000
• A 45 HP tractor will now be cheaper by ₹45,000
• A 50 HP tractor will now be cheaper by ₹53,000
• A 75 HP tractor will now be cheaper by ₹63,000

Even small tractors used in horticulture and weeding will see cost reductions. A 4-row paddy transplanter will now be cheaper by ₹15,400, while a 4-tonne-per-hour multi-crop thresher will cost ₹14,000 less. A 13-HP power tiller will also cost ₹11,875 less.

Further price reductions include:

• Power weeder (7.5 HP): cheaper by ₹5,495
• Trailer (5-tonne capacity): cheaper by ₹10,500
• Seed-cum-fertiliser drill (11 tyne): cheaper by ₹3,220
• Seed-cum-fertiliser drill (13 tyne): cheaper by ₹4,375
• Harvester combine cutter bar (14 ft): cheaper by ₹1,87,500
• Straw reaper (5 ft): cheaper by ₹21,875
• Super seeder (8 ft): cheaper by ₹16,875
• Happy seeder (10 tyne): cheaper by ₹10,625
• Rotavator (6 ft): cheaper by ₹7,812
• Baler square (6 ft): cheaper by ₹93,750
• Mulcher (8 ft): cheaper by ₹11,562
• Pneumatic planter (4-row): cheaper by ₹32,812
• Tractor-mounted sprayer (400-litre capacity): cheaper by ₹9,375

Shri Chouhan announced that the government will widely disseminate information on these benefits through multiple communication channels to raise awareness among farmers.

The Minister also emphasised that custom hiring centres, which will now get machines at lower prices, must reduce rental rates to ensure affordability for farmers.

Information about the GST rate reduction will be communicated to farmers during the upcoming second phase of the ‘Viksit Krishi Sankalp Abhiyan’ for Rabi crops, beginning October 3, so that they can make the best use of it for advanced farming.

Shri Chouhan said that suitable measures will be taken to strengthen farm mechanisation. Suggestions from manufacturer associations will be considered while framing future plans. He urged the representatives to minimise the role of middlemen and ensure farmers directly receive the benefits of GST reforms.

Representatives of the machinery associations welcomed the government’s decision, pledged to faithfully implement the Minister’s directions, and reiterated their commitment to farmers welfare. After the meeting, Shri Chouhan joined the participants in a plantation drive, reaffirming the Central government’s resolve to work for the prosperity of farmers.

Agriculture Secretary Dr. Devesh Chaturvedi and other senior officials of the Ministry were also present the meeting.

Click here to know the new prices of agricultural equipment after the reduction in GST rates

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