New GST Reforms to Boost Farmers’ Income: Shivraj Singh Chouhan
Bhopal, September 6, 2025 – Union Agriculture and Rural Development Minister Shivraj Singh Chouhan said that the revised Goods and Services Tax (GST) rates will significantly benefit India’s farmers, particularly small and medium cultivators. He aws addressing a press conference in Bhopal. He described the reforms as a “boon for farmers.” They would lower input costs, improve profits, and accelerate the shift towards sustainable farming practices.
The minister highlighted that the GST on agricultural equipment has been reduced from 18 per cent to 518 per cent, substantially cutting the cost of tractors, harvesters, threshers, paddy planters, power tillers, and other machinery. For instance, farmers will now save between ₹25,000 and ₹63,000 on tractors, depending on horsepower. Similarly, paddy planters, threshers, weeders, and seed drills will all see price reductions. All this will ease the financial burden on cultivators.
In the dairy sector, GST exemptions on milk and cheese, along with reduced rates on butter, ghee, and milk cans, are expected to benefit both producers and consumers. “This will strengthen dairy farming and provide direct relief to milk producers and cattle rearers,” Chouhan said.
The minister also underlined the impact of reduced GST on bio-pesticides, micronutrients, and raw materials for fertilisers. It will encourage farmers to adopt organic and natural farming. Additionally, GST reductions on preserved fruits, vegetables, fish, and honey will support food processing, fisheries, and apiculture, creating new income avenues in rural India.
Chouhan emphasised that new GST rates align with Prime Minister Narendra Modi’s vision of next-generation GST reforms aimed at easing the lives of common people while boosting the rural economy. He noted that the reforms will also lower costs for infrastructure development in rural areas. It wi;; benefit houses under Pradhan Mantri Awas Yojana, schools, and Anganwadis.
“These steps will not only reduce the cost of cultivation but also enhance production and profits. They will strengthening the rural economy. Farmers, women self-help groups, and lakhpati didis will all gain from these changes,” Chouhan added.
Vishal Duggal possesses over two decades of journalistic experience across print and web domains. He headed the editorial team of “Sahara Time” a 48-page general interest English weekly newspaper. He was also a senior editor with Exchange4media group’s real estate magazine “Realty Plus” and prior to that Consulting Editor with “Geopolitics” a magazine on defence and strategic affairs, and Executive Editor with Pravasi Indians, a magazine on the global Indian diaspora. Currently, he lends his professional expertise to several publications and websites.
