Agricultural Machinery And Tractors To Become Cheaper In Major Relief For Farmers: Minister

2025-09-19 08:30:48

(MENAFN- IANS) New Delhi, Sep 19 (IANS) The 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, Union Agriculture Minister Shivraj Singh Chouhan said on Friday.

Addressing a meeting to discuss the latest GST reforms for agricultural machinery here in the presence of industry representatives, Chouhan thanked Prime Minister Narendra Modi for the GST rate cuts.

He said that GST on agricultural machinery, earlier at 12 per cent and 18 per cent, has now been reduced to 5 per cent, effective from September 22 which will directly benefit farmers.

The representatives of machine manufacturers associations were told that the reduced GST rates should directly benefit farmers with full transparency.

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.

A 35 HP tractor will now be cheaper by Rs 41,000, a 45 HP tractor will now be cheaper by Rs 45,000, a 50 HP tractor will now be cheaper by Rs 53,000 and a 75 HP tractor will now be cheaper by Rs 63,000.

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

Chouhan said 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.

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