The Centre has asked agricultural machinery manufacturers to reduce their product prices in line with the revised Goods and Services Tax (GST) rates effective from September 22, so that the benefit directly reaches farmers “with full transparency.”

Union Agriculture Minister Shivraj Singh Chouhan, after a meeting with farm machinery manufacturers here on Friday, said the reduction in GST rates was a significant step that would have a widespread impact.

Representatives from the Tractor and Mechanisation Association, Agricultural Machinery Manufacturers Association, All India Combine Manufacturers Association, and Power Tiller Association of India, among others, participated in the meeting.

Mr. Chouhan said the GST on agricultural machinery, earlier at 12% and 18%, has been reduced to 5%. As a result, tractors will now be cheaper by ₹41,000 to ₹63,000, a four-row paddy transplanter by ₹15,400, and a four-tonne-per-hour multi-crop thresher by ₹14,000.

He said the measure would promote mechanisation of agriculture. “Suggestions from manufacturer associations will be considered while framing future plans,” he added.

According to a government release, the machinery associations welcomed the decision, assured faithful implementation of the Minister’s directions, and reiterated their commitment to farmers’ welfare.

Source: The Hindu