Staff Reporter
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan on Saturday said that the recent changes in Goods and Services Tax (GST) rates will prove to be a “boon” for farmers, especially small and medium cultivators, by making agricultural equipment, inputs, and allied sector products more affordable. Addressing a press conference in Bhopal on September 6, 2025, he emphasised that the reforms reflect Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat and will ease the financial burden on rural households while boosting productivity.
Chouhan noted that GST on bio-pesticides and micronutrients has been reduced substantially, encouraging farmers to shift from chemical to organic and natural farming practices. In the dairy sector, milk and cheese have been completely exempted from GST, which will directly benefit farmers, milk producers, and cattle rearers while also reducing costs for consumers. “Lowering the tax on essentials like butter, ghee, and milk cans will further strengthen India’s traditional dairy economy,” he added.
Explaining the financial impact of the reforms, the Minister highlighted the sharp fall in GST on agricultural machinery—from 18% to 5%—which will translate into significant savings for farmers. For instance, a 35 HP tractor that earlier cost about ₹6.5 lakh will now save farmers nearly ₹41,000, while a 75 HP tractor will be cheaper by ₹63,000. Smaller implements too have seen price reductions: a paddy planting machine now costs ₹15,400 less, a multi-crop thresher is cheaper by ₹14,000, and a power weeder by nearly ₹5,500. Similar savings are expected on super seeders, mulchers, straw reapers, and automatic planters. “For farmers, this means lower investment costs, higher access to modern equipment, and better yields,” Chouhan said.
The Minister further underlined that integrated farming—covering animal husbandry, poultry, fish farming, beekeeping, and agro-forestry—will receive a strong push as GST has been rationalised on many allied activities. He pointed out that the exemption on fish, honey, preserved fruits, and vegetables will create new opportunities for farmers engaged in processing and allied sectors. Cold storage and food processing units are also expected to gain from lower GST rates, thereby expanding the rural economy.
Chouhan placed special emphasis on the role of women self-help groups in rural development. “Our Lakhpati Didi movement is gaining strength, and with exemptions on handicrafts, leather goods, and dairy products, rural women entrepreneurs will see their incomes rise further,” he said.
Beyond agriculture, the reforms also reduce costs in rural housing and infrastructure. Lower GST on cement and iron will make houses built under the Pradhan Mantri Awas Yojana cheaper and help in constructing schools, Anganwadi centres, and Panchayat Bhawans. The cut in GST on energy-based equipment, including drip irrigation systems, will lower water usage while improving crop productivity, ensuring that modern, climate-friendly technologies reach small farmers at affordable prices.
On fertilisers, Chouhan pointed out that raw materials such as ammonia, sulphuric acid, and nitric acid now attract only 5% GST instead of 18%. This is expected to bring down fertiliser costs and encourage the use of organic inputs, giving a further boost to natural farming.
“Taken together, these reforms are not just about taxation; they are about transforming rural India,” the Minister asserted. He stressed that lower costs will raise demand, increase market circulation, and ultimately strengthen the national economy. “By 2047, when we celebrate 100 years of independence, these reforms will help realise the dream of a Viksit Bharat,” he said.
Chouhan expressed gratitude to Prime Minister Modi and the Finance Ministry for implementing what he called “revolutionary changes” in GST. He concluded by reaffirming that the government’s resolve is to reduce the cost of production, raise agricultural output, and ensure that farmers earn higher profits. “These steps will boost integrated and sustainable farming, empower rural families, and bring prosperity to every village,” he said.
