Agricultural Boost: GST Cuts Lead to Tractor Price Reductions

In a significant move aimed at bolstering farmers' financial prospects, Agriculture Minister Shivraj Singh Chouhan has called on tractor and farm equipment manufacturers to transfer the benefits of GST reductions to farmers effective September 22. This initiative is expected to yield substantial price cuts across diverse tractor categories.

Chouhan, speaking to the media post a meeting with farm equipment stakeholders, emphasized that the GST cut will make farm machinery cheaper at Custom Hiring Centres nationwide, which should consequently lower rental prices. Custom Hiring Centres serve to provide farm machinery at subsidized rates, empowering marginal and small farmers.

The government's strategy is to enhance farmers' incomes by not just boosting production but also by lowering cultivation costs. Notably, the GST reduction is expected to slash prices by ₹41,000 for 35 HP tractors and up to ₹63,000 for 75 HP models. Compact tractors used in horticulture will also see a price dip of approximately ₹23,000.

(With inputs from agencies.)