The new GST rates and slabs announced by the central government will have a big impact on the agriculture sector. Small and medium farmers will get direct benefit from this. The cut in GST on farm equipment will lower the cost of farming and increase farmers’ profit.
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan said in a press conference in Bhopal today that the new GST rates and slabs will help farmers in many ways. He said small and medium farmers will benefit the most. With lower GST on farm equipment, the cost of farming will go down and farmers’ profit will rise.
He also said GST has been cut on bio-pesticides and micro-nutrients. This will help farmers and also push them to move from chemical fertilizers to bio-fertilizers. In the dairy sector, GST has been removed on milk and cheese. This will benefit not only the common people but also farmers, cattle keepers, and milk producers.
Agricultural equipment will be cheaper, farmers will save more
The new GST reforms will give big benefits to farmers. Some companies have already started passing this benefit. The GST on farm equipment like tractors, harvesters, and rotavators has been reduced to 5%. This will prove to be a boon for farmers.
For example, if a tractor earlier cost ₹9 lakh, now a farmer will save about ₹65,000 on it. On a 35 HP tractor worth ₹5.8 lakh, the saving will be ₹41,000. On a 45 HP tractor, the saving will be ₹45,000. On a 50 HP tractor, the saving will be ₹53,000. On a 75 HP tractor, the saving will be about ₹63,000. So farmers can save from ₹25,000 to ₹63,000 on tractors alone.
Dairy and farming sector will benefit
In the dairy sector, there will now be no GST on milk and cheese. This will benefit both common people and milk producers. Farmers, cattle rearers, and dairy businesses will also earn more. GST has been cut on butter, ghee, and milk cartons, which will increase their demand and help the dairy sector grow.
GST has also been reduced on bio-pesticides and micro-nutrients. These will now cost less, which will promote natural and organic farming. Farmers will shift from chemical fertilizers to bio-fertilizers. GST on fertilizers like ammonia, sulphuric acid, and nitric acid has also come down from 18% to 5%. These are raw materials for making fertilizers, so prices will fall and farmers will benefit.
Boost to rural economy and women’s groups
GST has been cut on cement and iron, which will make building houses in rural areas cheaper under Pradhan Mantri Awas Yojana. Costs of schools, Anganwadis, and Panchayat Bhawans will also go down. This will strengthen the rural economy and increase demand.
The reforms will also support women’s groups and the Lakhpati Didi movement. With higher demand and lower costs, more money will flow into the market, giving direct benefit to farmers and rural women.