Gujarat’s farmers are in for some good news! The state government has just extended the deadline for buying tractors and other farm equipment under the Agricultural Mechanisation Scheme. This smart move lets farmers grab the benefits of new GST rate cuts, which kick in from September 22. It’s all part of efforts to make farming easier and more affordable in Gujarat.
Agriculture Minister Raghavji Patel shared this update in the Assembly. He explained that these changes come from GST reforms led by Prime Minister Narendra Modi. The big wins? GST on tractors drops from 12% to just 5%. Tyres and tractor parts see a similar slash from 18% to 5%. Farm mechanisation tools and micro-irrigation equipment now face only 5% GST instead of 12%. Even micro-nutrients, bio-pesticides, and key fertiliser raw materials like ammonia and sulphuric acid get a cut from 12-18% to 5%.
“Tractor prices will drop a lot now,” Patel said. “Farmers can save an extra Rs 35,000 to Rs 45,000 on top of the state’s Rs 1 lakh subsidy for tractor purchases.” This extension means around one lakh farmers in Gujarat can jump on these savings right away. It won’t just lower costs for mechanisation and irrigation tools—it’ll also ramp up domestic fertiliser production for better, timely supplies to growers.
Gujarat’s government is all in on boosting agricultural mechanisation and cutting financial stress for farmers. After all, farming powers more than half the state’s workforce. The latest Agriculture Census from 2015-16 shows about 61.2 lakh operational holdings, with nearly 75% being small and marginal farmers with less than two hectares of land. These cover around 9.5 million hectares of farmland, making Gujarat a top player in India’s agriculture scene.
The state grows key crops like cotton, groundnut, wheat, rice, bajra, maize, sugarcane, and plenty of horticultural produce. Livestock farming is huge too, especially in areas like Kutch and Saurashtra. With these GST reductions on tractors, farm equipment, and fertilisers, Gujarat farmers can gear up for a stronger season ahead!
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