Major Savings on Agricultural Equipment
The Minister detailed savings for farmers on key machinery. For instance, a 35 HP tractor will now cost approximately ₹6.09 lakh, down from ₹6.50 lakh, saving ₹41,000. Similarly, 45 HP, 50 HP, and 75 HP tractors will see savings ranging from ₹45,000 to ₹63,000. Power tillers, multi-crop threshers, seed drills, and harvesters will also become more affordable, encouraging mechanization in farming.
Boost to Integrated and Allied Farming
Shri Chouhan emphasized integrated farming, including animal husbandry, fish farming, poultry, beekeeping, and agroforestry. GST reductions on equipment and supplies for these allied activities will increase farmer incomes and diversify revenue sources. Women-led self-help groups producing handicrafts, milk products, and leather goods will also benefit from the lower tax rates, strengthening rural entrepreneurship.
Impact on Fertilizers and Organic Inputs
Fertilizer raw materials, such as ammonia, sulphuric acid, and nitric acid, now attract a 5% GST, down from 18%. Twelve types of biological pesticides and micro-nutrients also benefit from reduced GST, lowering the cost of organic and sustainable farming practices. This reform is expected to accelerate the shift from chemical to organic fertilizers across Indian agriculture.
Dairy and Food Processing Advantages
Exemption of GST on dairy products and related equipment will benefit milk producers, cattle rearers, and processors. Lower taxes on preserved vegetables, fruits, dry fruits, honey, and processed fish will increase value addition and rural income. Cold storage, food processing, and energy-efficient irrigation systems like drip irrigation will also become more accessible to farmers.
Rural Infrastructure and Economic Growth
Reduced GST on cement and iron will decrease construction costs under schemes like Pradhan Mantri Awas Yojana. Lower costs for rural schools, anganwadis, and panchayat buildings will strengthen infrastructure while boosting local economies. Overall, these GST reforms are expected to increase demand, improve market liquidity, and provide a substantial boost to rural India.
Shri Chouhan expressed gratitude to Prime Minister Narendra Modi and Finance Minister for implementing reforms that reduce production costs, promote integrated farming, and empower farmers and rural women.
