New Delhi: Union Minister for Agriculture and Farmer’s Welfare & Rural Development Shri Shivraj Singh Chouhan convened a pivotal meeting on GST reforms for agricultural machinery on September 19, 2025, in New Delhi. The meeting included representatives from leading farm mechanisation organisations such as the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA), and Power Tiller Association of India (PTAI). Participants joined both in person and virtually to discuss the recent GST rate cuts impacting the sector.
Major GST Rate Cuts Announced
Shri Chouhan expressed gratitude to Prime Minister Narendra Modi for the GST reduction on agricultural machinery from previous 12% and 18% slabs to a uniform 5%, effective September 22, 2025. This reform aims at providing direct, transparent financial relief to farmers by significantly lowering the cost of farm equipment. The Minister emphasized that increased farmer income hinges not only on enhanced productivity but also on cost reductions facilitated by mechanisation.
Detailed Price Reductions for Agricultural Equipment
The GST reduction translates into considerable savings across a broad range of machinery:
-
35 HP tractor: cheaper by ₹41,000
-
45 HP tractor: cheaper by ₹45,000
-
50 HP tractor: cheaper by ₹53,000
-
75 HP tractor: cheaper by ₹63,000
Smaller equipment also benefits substantially:
-
4-row paddy transplanter: ₹15,400 less
-
4-tonne-per-hour multi-crop thresher: ₹14,000 less
-
13 HP power tiller: ₹11,875 less
-
Power weeder (7.5 HP): ₹5,495 less
-
Trailer (5-tonne capacity): ₹10,500 less
-
Seed-cum-fertilizer drills, harvesters, balers, mulchers, and sprayers also see sizeable price drops, reflecting a comprehensive effort to make mechanisation affordable.
Steps to Maximise Farmer Benefits and Future Initiatives
Shri Chouhan called upon manufacturers to minimize middlemen’s role, ensuring GST benefits reach the farmers directly and transparently. Custom hiring centres equipped with machines at lower prices are encouraged to offer reduced rental rates for greater farmer accessibility. Awareness campaigns regarding these GST reforms will be extensively conducted, including during the second phase of the Viksit Krishi Sankalp Abhiyan slated to start on October 3, focusing on Rabi crop farmers.
The Minister assured that suggestions from farm mechanisation associations will inform future policy planning to strengthen mechanisation further. The meeting concluded with a plantation drive symbolizing the government’s commitment to sustainable agriculture and farmer prosperity. Agriculture Secretary Dr. Devesh Chaturvedi and other senior ministry officials were also in attendance.
Conclusion
The GST reform for agricultural machinery marks a watershed moment in reducing input costs for farmers and promoting agricultural mechanisation. With potential cost savings exceeding tens of thousands of rupees across various equipment types, this move will empower farmers with affordable technology, driving increased productivity and income. Continued collaboration between government, manufacturers, and farmers will be pivotal to ensuring the reforms’ full impact across India’s vast agricultural landscape.
For more real-time updates, visit Channel 6 Network.
Source: PIB
