TFP Bureau, <\/i>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 \u201ca boon for agriculture, dairy, fisheries, and allied sectors,\u201d noting that they will particularly benefit small and marginal farmers.<\/p>\n
Highlighting the wide-ranging impact of the reforms, Chouhan said that GST on agricultural machinery and equipment has been slashed from 18% to 5%. \u201cThis step alone will reduce the cost of essential tools such as tractors, harvesters, rotavators, threshers, and planting machines, helping lakhs of farmers,\u201d he said.<\/p>\n
According to estimates shared by the Minister, farmers can now save anywhere between \u20b925,000 and \u20b963,000 on tractors of various horsepower capacities. For example, a 35 HP tractor that earlier cost about \u20b96.5 lakh will now be cheaper by \u20b941,000, while a 75 HP tractor will be cheaper by nearly \u20b963,000. Similarly, savings of up to \u20b915,400 can be made on paddy planting machines, \u20b914,000 on multi-crop threshers, and nearly \u20b932,800 on advanced automatic planters.<\/p>\n
\u201cFrom ploughing to harvesting, the farmer\u2019s burden will reduce,\u201d Chouhan said, adding that modern equipment will now be more accessible. \u201cOur resolve is to bring down the cost of production while boosting yield. With this reform, farmers\u2019 profits will rise,\u201d he asserted.<\/p>\n
Relief for Dairy and Allied Sectors<\/strong> 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.<\/p>\n Boost to Organic and Natural Farming<\/strong> \u201cThis will accelerate the transition of farmers from chemical fertilizers to bio-fertilizers, improving soil health and promoting natural farming,\u201d Chouhan said.<\/p>\n Support for Rural Infrastructure and Economy<\/strong> \u201cCheaper building materials will ease the lives of rural families, while also cutting costs for public infrastructure projects,\u201d he said.<\/p>\n Value Addition and Food Processing<\/strong> Savings for Farmers Across Equipment Range<\/strong> \u201cThese are not just numbers \u2013 they mean real savings in the hands of farmers and a chance for them to invest more in productivity,\u201d Chouhan said.<\/p>\n A Farmer-Friendly Reform<\/strong> He added that the government\u2019s integrated approach to farming \u2013 combining agriculture with allied sectors such as dairy, poultry, fishery, beekeeping, and agro-forestry \u2013 would get a further boost from these changes.<\/p>\n \u201cMy 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,\u201d Chouhan concluded.<\/p>\n 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\u2019s journey towards becoming a global agricultural powerhouse.<\/p>\n","protected":false},"excerpt":{"rendered":" Reduced tax rates on tractors, equipment, dairy, and organic inputs expected to ease costs and increase profits for small and medium farmers<\/p>\n","protected":false},"author":1,"featured_media":3403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[116,27,488],"tags":[391],"class_list":["post-3402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-national","category-union-fertilizer-ministry-and-agriculture","tag-gst-amendment"],"yoast_head":"\n
\nThe 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. \u201cThis will not only benefit the common man but also cattle rearers, dairy farmers, and women self-help groups involved in milk-based products,\u201d Chouhan said. He added that the move would strengthen the \u201cLakhpati Didi\u201d initiative, which has empowered thousands of rural women entrepreneurs.<\/p>\n
\nThe 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.<\/p>\n
\nChouhan pointed out that the impact of the GST changes will extend beyond farms. With reduced GST on cement and iron, construction of rural infrastructure \u2013 including houses under the Pradhan Mantri Awas Yojana, schools, Anganwadi centres, and Panchayat Bhawans \u2013 will become more affordable.<\/p>\n
\nThe 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. \u201cThis step will ensure that farmers earn more from their produce by reducing post-harvest losses and creating new markets,\u201d he explained.<\/p>\n
\nChouhan detailed savings on a range of farm equipment:<\/p>\n\n
\nChouhan, himself a farmer, expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the reforms. \u201cThe 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,\u201d he said.<\/p>\n