In a major move aimed at boosting the rural economy, the recent GST reforms are set to bring significant benefits to India’s farmers and the agriculture sector. Union Agriculture Minister Shivraj Singh Chouhan has stated that these changes will lower farming costs and increase profits, particularly for small and medium-scale farmers.
A key change is the reduction of GST on essential agricultural equipment, including tractors, harvesters, and rotavators. This will make these crucial tools more affordable. For example, the Minister explained that on a tractor costing ₹9 lakh, a farmer can now save approximately ₹65,000.
In a push towards natural farming, the GST on bio-pesticides and micro-nutrients has also been slashed. This is expected to encourage more farmers to move away from chemical fertilisers and adopt eco-friendly alternatives. Additionally, the tax on raw materials for fertilisers, like ammonia and sulphuric acid, has been reduced from 18% to 5%, which should lead to lower prices for the end product.
The dairy sector receives a substantial boost as well. GST has been completely waived on milk and cheese. The tax has also been reduced on products like butter, ghee, and even milk cans. This will benefit everyone from the common consumer to the milk producer, cattle breeder, and farmer.
Minister Chouhan credited Prime Minister Narendra Modi for these “next-generation reforms,” reiterating the government’s commitment to reducing production costs and increasing farmers’ income. He emphasized that by making farming and its allied sectors more integrated and profitable, these GST revisions will provide great relief and directly contribute to the progress of India’s agricultural community.
