TFP Bureau, Bhopal/Delhi, September 6, 2025: Union Agriculture and Rural Development Minister Shivraj Singh Chouhan on Saturday said that the revised Goods and Services Tax (GST) rates announced by the Centre will significantly reduce the cost of farming and increase profitability for farmers across India. Addressing a press conference in Bhopal, the Minister described the reforms as “a boon for agriculture, dairy, fisheries, and allied sectors,” noting that they will particularly benefit small and marginal farmers.
Highlighting the wide-ranging impact of the reforms, Chouhan said that GST on agricultural machinery and equipment has been slashed from 18% to 5%. “This step alone will reduce the cost of essential tools such as tractors, harvesters, rotavators, threshers, and planting machines, helping lakhs of farmers,” he said.
According to estimates shared by the Minister, farmers can now save anywhere between ₹25,000 and ₹63,000 on tractors of various horsepower capacities. For example, a 35 HP tractor that earlier cost about ₹6.5 lakh will now be cheaper by ₹41,000, while a 75 HP tractor will be cheaper by nearly ₹63,000. Similarly, savings of up to ₹15,400 can be made on paddy planting machines, ₹14,000 on multi-crop threshers, and nearly ₹32,800 on advanced automatic planters.
“From ploughing to harvesting, the farmer’s burden will reduce,” Chouhan said, adding that modern equipment will now be more accessible. “Our resolve is to bring down the cost of production while boosting yield. With this reform, farmers’ profits will rise,” he asserted.
Relief for Dairy and Allied Sectors
The GST overhaul also extends major relief to dairy producers and consumers. Milk and cheese have been fully exempted from GST, while reduced rates have been announced for butter, ghee, and milk cans. “This will not only benefit the common man but also cattle rearers, dairy farmers, and women self-help groups involved in milk-based products,” Chouhan said. He added that the move would strengthen the “Lakhpati Didi” initiative, which has empowered thousands of rural women entrepreneurs.
In the fisheries sector, preserved and processed fish products will now attract lower GST, reducing costs for fish farmers. Similarly, GST on natural honey has also been reduced, benefiting bee-keepers and honey producers across the country.
Boost to Organic and Natural Farming
The Minister stressed that the reforms would also promote sustainable agricultural practices. GST on 12 bio-pesticides and micronutrients has been reduced, making natural and organic inputs more affordable. Fertilizer raw materials like ammonia, sulphuric acid, and nitric acid have also seen a steep reduction from 18% to 5%, lowering overall fertilizer prices.
“This will accelerate the transition of farmers from chemical fertilizers to bio-fertilizers, improving soil health and promoting natural farming,” Chouhan said.
Support for Rural Infrastructure and Economy
Chouhan pointed out that the impact of the GST changes will extend beyond farms. With reduced GST on cement and iron, construction of rural infrastructure – including houses under the Pradhan Mantri Awas Yojana, schools, Anganwadi centres, and Panchayat Bhawans – will become more affordable.
“Cheaper building materials will ease the lives of rural families, while also cutting costs for public infrastructure projects,” he said.
Value Addition and Food Processing
The Minister said that GST cuts on processed and preserved fruits, vegetables, and dry fruits would encourage food processing industries, cold storage facilities, and value addition in agriculture. “This step will ensure that farmers earn more from their produce by reducing post-harvest losses and creating new markets,” he explained.
Savings for Farmers Across Equipment Range
Chouhan detailed savings on a range of farm equipment:
- Power tiller (13 HP): ₹11,875 cheaper
- Multi-crop thresher (4 tonne): ₹14,000 cheaper
- Paddy planting machine (4-row walk behind): ₹15,400 cheaper
- Power weeder (7.5 HP): ₹5,495 cheaper
- Seed cum fertilizer drill: ₹10,500 cheaper
- Cutter bar for combine harvesters (14 ft): ₹1,87,500 cheaper
- Straw reaper: ₹21,875 cheaper
- Super Seeder: ₹16,875 cheaper
- Mulcher: ₹11,500 cheaper
- Automatic planters: ₹32,800 cheaper
“These are not just numbers – they mean real savings in the hands of farmers and a chance for them to invest more in productivity,” Chouhan said.
A Farmer-Friendly Reform
Chouhan, himself a farmer, expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the reforms. “The Prime Minister had promised next-generation GST reforms from the Red Fort. Today, these reforms are becoming a reality for farmers, workers, and rural families,” he said.
He added that the government’s integrated approach to farming – combining agriculture with allied sectors such as dairy, poultry, fishery, beekeeping, and agro-forestry – would get a further boost from these changes.
“My prayer on this day of Anant Chaturdashi is that every farmer, every household, and every citizen sees greater happiness and prosperity. These reforms are a step towards that vision,” Chouhan concluded.
The Minister said that the GST reforms will not only reduce costs for farmers but also increase rural demand, stimulate the economy, and strengthen India’s journey towards becoming a global agricultural powerhouse.
