agri-minister-urges-tractor-makers-to-pass-on-gst-cut-to-farmers

In a meeting with manufacturers of tractors and farm equipment on Friday in New Delhi, Agriculture Minister, Shivraj Singh Chouhan, urged them to ensure that the benefits of Goods and Services Tax (GST) reductions are passed on to the real beneficiaries – the farmers – when the new tax regime is rolled out from September 22.

Addressing the media after the meeting, Chouhan said the GST reduction would make farm machinery at ‘Custom Hiring Centres’ (CHC) across the country cheaper, and that rentals should also come down accordingly.

Tax cuts would result in significant price cuts in farm machinery, ranging from ₹23,000 to ₹63,000, across different tractor categories, he added.

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

 

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"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," the minister said.

While outlining specific price reductions expected across tractor categories, Chouhan said: ₹41,000 will be the price reduction for 35 HP tractors, ₹45,000 for 45 HP tractors, ₹53,000 for 50 HP tractors, and ₹63,000 for 75 HP tractors. Compact tractors used in horticulture will see a price reduction of about ₹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 told reporters.

Emphasising on the significance of cheaper farm equipment in increasing production, Chouhan said that the reduction in GST rates would benefit farm equipment across all categories.

The minister also said Custom Hiring Centres would get farm machines at cheaper rates, and that his government will work on ensuring rentals also come down accordingly. 

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

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.