Agriculture Minister Meets Industry Associations On Recent GST Cuts For Farm Machinery

(MENAFN- KNN India) New Delhi, Sep 20 (KNN) Union Minister for Agriculture and Farmers' Welfare and Rural Development Shivraj Singh Chouhan on Friday chaired a meeting in New Delhi with representatives of major agricultural machinery associations to discuss the recent Goods and Services Tax (GST) reforms in the sector.

Associations including the Tractor and Mechanisation Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA), and the Power Tiller Association of India (PTAI) participated in the deliberations.

Addressing the media after the meeting, Chouhan said the Centre's decision to reduce GST on agricultural machinery from the previous slabs of 12 and 18 percent to 5 percent, effective September 22, would significantly lower costs for farmers.

He added that the move aligns with the government's commitment to increase farm incomes through higher productivity and reduced input expenses.

The Minister underscored the importance of transparency, directing manufacturers to ensure that the benefits of the reduced GST rates are passed on directly to farmers.

He highlighted examples of the expected price cuts: a 35 HP tractor will be cheaper by Rs 41,000, a 50 HP tractor by Rs 53,000, and a 75 HP tractor by Rs 63,000.

Smaller implements, including a 13 HP power tiller, will see reductions of nearly Rs 12,000, while a 14 ft harvester combine cutter bar will be cheaper by Rs 1.87 lakh.

Other machines such as seed drills, threshers, transplanters, sprayers, and mechanised equipment like balers, mulchers, and super seeders will also see significant reductions in price.

Chouhan announced that the benefits would be widely publicised through multiple channels and during the upcoming second phase of the Viksit Krishi Sankalp Abhiyan for Rabi crops, starting October 3.

He further stressed that custom hiring centres must pass on the cost benefits through reduced rental rates to ensure affordability for small and marginal farmers.

The Minister also assured stakeholders that inputs from industry associations would be considered in shaping future mechanisation policies.

He urged manufacturers to minimise middlemen involvement and ensure that farmers receive the benefits directly.

(KNN Bureau)

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