Shivraj Singh Chouhan Speaks with Farm Mechanisation Associations, Urges Transfer of Reduced GST Benefits to Farmers
19 September 2025, New Delhi: Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan chaired a key meeting in New Delhi today on the Goods and Services Tax (GST) reforms for agricultural machinery. Representatives from leading farm mechanisation industry associations, including the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA), and Power Tiller Association of India (PTAI), participated in the discussions both in person and virtually.
Chouhan announced that GST on agricultural machinery, previously set at 12% and 18%, has been reduced to 5% effective from 22 September. He stated that this reform would significantly reduce costs for farmers while supporting the government’s broader objective of enhancing farmers’ income through improved productivity and lower expenses. Mechanisation, he said, remains central to this goal.
During the meeting, the Minister urged manufacturers to ensure that the benefits of reduced GST rates reach farmers directly, avoiding middlemen. He highlighted specific price reductions across tractors and machinery: a 35 HP tractor will be cheaper by ₹41,000, a 50 HP tractor by ₹53,000, and a 75 HP tractor by ₹63,000. Other equipment, such as paddy transplanters, threshers, power tillers, seed drills, combines, straw reapers, seeders, sprayers, balers, and mulchers, will also see reduced prices, making farm mechanisation more affordable.
The Minister further announced that these benefits will be communicated widely during the upcoming second phase of the Viksit Krishi Sankalp Abhiyan beginning 3 October. He directed custom hiring centres to pass on the cost savings to farmers through reduced rental rates. The government will also incorporate suggestions from industry associations to strengthen the farm mechanisation ecosystem.
Industry representatives welcomed the GST rate cuts, reaffirmed their commitment to implement the government’s directions transparently, and pledged to continue supporting farmers’ welfare. The meeting concluded with a plantation drive, symbolising the government’s continued focus on agricultural sustainability.
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