By Dr. Waseem Ahmad

Agriculture still drives the economy and puts food on millions of tables in India. So even small changes in taxes can affect a lot of lives. The government's latest GST reforms are one of those changes. For farmers in Jammu and Kashmir, they might bring a long-awaited relief.

By lowering GST rates on key agricultural goods and services, the government has lifted a heavy weight from the shoulders of small farmers. Fertilizers now attract just 5% tax instead of 12%, and machinery like tractors and threshers has become more affordable.

These changes mean more savings, higher productivity, and a better chance at survival for farmers who often operate on the edge.

For decades, agriculture in Jammu and Kashmir has been defined by hard terrain, harsh weather, and high costs.

Many farmers here work small patches of land where mechanisation has long felt out of reach. With lower taxes on equipment, that barrier begins to fall.

Harvesters, solar-powered irrigation pumps, and threshers can now reach more fields, saving time and labour while improving the quality of produce.

For an apple grower in Shopian or a saffron cultivator in Pampore, that difference could mean the leap from subsistence to sustainability.

The ripple extends to Farmer Producer Organisations (FPOs) and rural agri-startups. These collectives give small farmers the power to pool resources, share technology, and find markets beyond their villages.

Earlier, complicated compliance rules and high taxes slowed their expansion. Simplified GST procedures now open new paths for these groups, especially in high-value sectors like apple packaging, walnut processing, and saffron branding.

The reforms also energize the food processing industry, which has long suffered under high taxes and low investment.

India loses nearly 30% of its farm produce to poor storage and lack of processing facilities. For Jammu and Kashmir, where fruits and organic products are abundant, affordable machinery could change that.

Local entrepreneurs can set up small units to dry fruits, extract oils, or brand indigenous produce, creating jobs and keeping value within the region.

Women stand to gain immensely. Across India, nearly half of self-employed farmers are women, many of whom in Kashmir manage farms as men migrate for work.

Cheaper agri-inputs and equipment give women-led Self-Help Groups a chance to launch micro-enterprises, from pickle making and seed production to small nurseries. These ventures could redefine empowerment.

There's also a sustainability dividend. Lower GST on solar pumps and drip irrigation systems encourages climate-smart farming, a vital step in regions where unpredictable rain and shrinking glaciers already threaten yields.

These incentives align farming with climate resilience, making the sector both greener and more stable.

Of course, tax cuts alone can't solve deep-rooted agricultural challenges. Awareness will be key. Farmers must know their new rights and rates to ensure they actually benefit.

Training programs and simplified GST systems for FPOs and SHGs can help bridge that gap.

The bigger picture, though, is encouraging.

These reforms reflect a change in how the country values its farmers as partners in growth.

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