By Mohammad Haris,News18

Copyright news18

Union Agriculture Minister Shivraj Singh Chouhan on Friday underlined the need to ensure that the recent Goods and Services Tax (GST) rate reduction on tractors and agricultural machinery is passed on directly to farmers. Chairing a meeting in New Delhi with representatives of the farm equipment industry, the minister said the tax cut would significantly reduce the cost of modern machinery and support agricultural mechanisation.
The GST Council has slashed rates on tractors and related equipment from 12% to 5%. This move, Chouhan said, will make farming equipment more affordable and ease the financial burden on cultivators.
The meeting was attended by representatives of the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Harvester Manufacturers Association (AICMA), Power Tiller Association of India (PTAI), and other related organisations.
The reduction is substantial and will boost farmers’ incomes. The benefit must not get absorbed midway but should directly reach farmers, starting from September 22, Chouhan said.
“The GST reduction will directly benefit farmers. The government’s aim is to increase farmers’ income, for which it is not only necessary to enhance production but also to reduce the cost of cultivation,” Chouhan said.
“Farm machinery like tractors is required to increase production and also helps reduce the cost of cultivation. I urged them to pass on the GST reductions to farmers from September 22. The benefit that farmers will gain is huge,” he said.
Big Savings for Farmers
The GST cut is set to translate into notable price drops across a wide range of equipment. According to estimates, tractors will become cheaper by Rs 41,000 to Rs 63,000 depending on horsepower. Power tillers will cost about Rs 11,875 less, while harvesters will see one of the biggest reductions, becoming cheaper by nearly Rs 1.88 lakh. Other machinery, too, will see price cuts: seed drills by up to Rs 4,375, multi-crop threshers by Rs 14,000, straw reapers by Rs 21,875, and balers by about Rs 93,750.
Chouhan outlined specific price reductions expected across tractor categories: Rs 41,000 for 35 HP tractors, Rs 45,000 for 45 HP tractors, Rs 53,000 for 50 HP tractors, and Rs 63,000 for 75 HP tractors. Compact tractors used in horticulture will see a price reduction of about Rs 23,000.
The minister added that the government is committed to making modern farming tools more accessible to small and marginal farmers, enabling them to increase productivity and incomes.