GST Cut: Tractor Prices to Fall for Farmers Sept 22

New Delhi, Sep 19 (PTI) Agriculture Minister Shivraj Singh Chouhan on Friday called upon tractor and farm equipment manufacturers to ensure that the benefits of GST reductions are passed on to farmers from September 22, saying the move would lead to significant price cuts ranging from Rs 23,000 to Rs 63,000 across different tractor categories.

Addressing the media after a meeting with representatives of farm equipment makers, Chouhan said the GST reduction would make farm machinery at Custom Hiring Centres across the country cheaper, and rentals should also come down accordingly.

The primary purpose of Custom Hiring Centres (CHC) is to provide marginal and small farmers with access to farm equipment and machinery at subsidized rates on hire.

"The GST reduction will directly benefit farmers. The government's aim is to increase farmers' income, for which it is not only necessary to enhance production but also to reduce the cost of cultivation," Chouhan said.

The minister outlined specific price reductions expected across tractor categories: Rs 41,000 for 35 HP tractors, Rs 45,000 for 45 HP tractors, Rs 53,000 for 50 HP tractors, and Rs 63,000 for 75 HP tractors. Compact tractors used in horticulture will see a price reduction of about Rs 23,000.


"Farm machinery like tractors is required to increase production and also helps reduce the cost of cultivation. I urged them to pass on the GST reductions to farmers from September 22. The benefit that farmers will gain is huge," he said.

Emphasising that the reduction would benefit farm equipment across all categories, Chouhan said it was necessary for manufacturers and dealers to pass on this benefit to farmers.

The minister also said Custom Hiring Centres would get farm machines at cheaper rates, and rentals should come down accordingly. "We will work on this," he added.

The government will focus on enhancing the production of small farm equipment that small farmers can use to boost farm mechanisation, he said.

The meeting was attended by representatives of the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Harvester Manufacturers Association (AICMA), Power Tiller Association of India (PTAI), and other related organisations.