Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan today held a meeting with representatives of leading agricultural machinery manufacturers at his residence in New Delhi to ensure that farmers directly benefit from the reduction in GST rates. The government recently slashed GST on farm machinery and implements from 18% to 5%, a move expected to bring significant relief to cultivators across the country.
During the meeting, Chouhan said the government’s top priority is to reduce costs for farmers and make agriculture more profitable. “Farmers are our grain providers; it is through their hard work that the country’s granaries are filled. Reducing their expenses and ensuring prosperity is our foremost responsibility,” he noted. The minister also emphasized that manufacturers and dealers must immediately pass on the benefits of the tax reduction to farmers without delay.
Farmers are now set to receive a dual benefit: lower taxation along with subsidies under existing government schemes. The move is expected to encourage wider adoption of mechanisation, particularly among small and marginal farmers, while also giving domestic manufacturers a stronger competitive edge under the Atmanirbhar Bharat initiative.
From September 22, farmers will begin to see the direct benefits of the revised GST rates. To ensure widespread awareness, the Agriculture Ministry will launch an extensive promotion campaign.
According to the minister, the new rates are expected to result in substantial savings for farmers across different categories of machinery. On tractors, farmers could save between Rs 41,000 and Rs 63,000, while a power tiller will now cost about Rs 11,875 less. Seed drills will become cheaper by Rs 3,220 to Rs 4,375, and multi-crop threshers by nearly Rs 14,000. Similarly, a harvester will see a sharp reduction of Rs 1,87,500, straw reapers by Rs 21,875, and balers by up to Rs 93,750.
Chouhan also announced that he would be visiting Jammu and Kashmir later today to meet disaster-affected farmers, reaffirming the government’s commitment to stand with cultivators during times of crisis under the leadership of Prime Minister Narendra Modi.
The meeting was attended by the Secretary, Agriculture & Farmers’ Welfare, Government of India, along with representatives from leading industry bodies including the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Harvester Manufacturers Association (AICMA), and the Power Tiller Association of India (PTAI).
