What's Happening?
Agriculture Minister Shivraj Singh Chouhan has urged farm equipment and tractor manufacturers to ensure that the benefits of the recent Goods and Services Tax (GST) reduction are passed directly to farmers. The GST on agricultural machinery has been reduced from 18% and 12% to a uniform 5%, effective September 22. This reduction aims to make equipment more affordable and promote mechanization in farming. The minister emphasized that the price cuts should directly benefit farmers, with tractors seeing reductions of up to Rs 63,000.
Why It's Important?
The GST reduction on agricultural machinery is a significant move to lower input costs for farmers, thereby enhancing their profitability and encouraging wider adoption of mechanization. This policy change is expected to boost agricultural productivity and support the government's focus on technology-driven farming. By ensuring that the tax benefits reach farmers, the initiative aims to strengthen the agricultural sector and improve the livelihoods of millions of farmers across the country.
What's Next?
The Agriculture Ministry plans to launch awareness campaigns to inform farmers about the revised GST rates. Additionally, government teams will visit villages to educate farmers on the benefits of mechanization. Custom Hiring Centres will also procure equipment at reduced prices, potentially lowering rental charges for farmers. The ministry is exploring further mechanization opportunities, such as mechanized cotton picking, to enhance productivity.
