Union Agriculture and Rural Development Minister Shivraj Singh Chouhan said that the new GST reforms will reduce farming costs and increase profits for farmers. The biggest relief comes from the reduction of GST on tractors, harvesters, and other agricultural equipment from 18% to just 5%. This means machines will now be much cheaper, helping especially small and medium farmers.
For example, farmers will now save:
- ₹41,000 on a 35 HP tractor
- ₹45,000 on a 45 HP tractor
- ₹53,000 on a 50 HP tractor
- ₹63,000 on a 75 HP tractor
Other equipment like threshers, paddy planters, power tillers, and weeders have also become cheaper, saving farmers thousands of rupees.
Support for Dairy Farmers and Consumers
The government has removed GST on milk and cheese. This will make dairy products cheaper for people and also increase demand. As a result, milk producers, cattle rearers, and dairy farmers will directly benefit. GST has also been reduced on butter, ghee, and milk cans, which will further help the dairy sector grow.
Boost for Organic and Natural Farming
To encourage farmers to shift from chemical to natural methods, GST has been cut on bio-pesticides, micronutrients, and raw materials like ammonia and sulphuric acid. This will lower the cost of fertilisers and make organic farming more affordable.
The new GST rates are not limited to crops and dairy. They will also support:
- Fish farming: GST on preserved fish has been reduced.
- Beekeeping: GST on natural honey is now lower.
- Animal husbandry, poultry, and agro-forestry: all will gain from cheaper equipment and tax exemptions.
Women Self-Help Groups (SHGs) working in handicrafts, milk products, and food processing will also benefit, giving more strength to the “Lakhpati Didi” movement that empowers rural women.
Push for Food Processing and Cold Storage
GST has also been cut on preserved fruits, vegetables, and dry fruits, which means better returns for farmers involved in food processing. Cheaper cold storage facilities will help reduce post-harvest losses.
Energy-based and drip irrigation equipment will now be cheaper with GST reduced from 12% to 5%. This will save water, increase crop yields, and make advanced technology more affordable for farmers.
GST on cement and iron has been reduced, which will lower the cost of building houses under the Pradhan Mantri Awas Yojana. Schools, Anganwadis, and Panchayat buildings in villages will also be built at a lower cost, improving rural infrastructure.
A Step Towards Integrated Farming
The government wants farmers to move towards integrated farming, combining crop cultivation with animal husbandry, poultry, beekeeping, fish farming, and forestry. The GST reforms will support this vision and ensure farmers have multiple sources of income.
Shivraj Singh Chouhan thanked Prime Minister Narendra Modi and the Finance Minister for these reforms, calling them a “boon for farmers and rural India.” He said these steps will increase demand, strengthen the rural economy, and improve the lives of farmers and common people alike.
Date : 21 September 2025 Time : 10 AM to 5 PM Fee : Rs. 1180
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