Agriculture Minister Shivraj Singh Chouhan urges tractor makers to pass on GST cuts to farmers

New Delhi: Union Agriculture Minister Shivraj Singh Chouhan on Friday urged tractor and farm equipment manufacturers to pass on the benefits of GST reductions to farmers from September 22.

The Minister said that reduction in GST rates on farm equipment would lead to significant price cuts ranging from Rs 23,000 to Rs 63,000 across different tractor categories.

The GST Council has slashed rates on tractors and related equipment from 12 per cent to 5. This move, Chouhan said, will make farming equipment more affordable and reduce the cost of cultivation.

Chouhan who chaired a meeting with representatives of farm equipment makers, said that the GST reduction would make farm machinery at Custom Hiring Centres across the country cheaper, and rentals should also come down accordingly.

The primary purpose of Custom Hiring Centres (CHC) is to provide marginal and small farmers with access to farm equipment and machinery at subsidized rates on hire.

The minister pointed out that price reductions were 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.

"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.

He also said that the government will focus on enhancing the production of small farm equipment that small farmers can use to boost farm mechanisation.

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.