Will GST Reforms Really Favor Small and Medium Farmers?

New Delhi, Sep 7 (NationPress) The recent GST reforms are set to significantly impact the agricultural landscape, providing substantial benefits to small and medium farmers. Union Agriculture Minister Shivraj Singh Chouhan stated that the reduction of GST rates on agricultural machinery will lead to lower farming costs and increased profits for farmers.

The newly revised GST rates on bio-pesticides and micro-nutrients will also positively affect farmers' productivity. Furthermore, a noticeable shift towards bio-fertilizers over chemical options is expected.

In the dairy sector, there will be a complete elimination of GST on milk and cheese products. This change aims not only to support consumers but also to enhance the livelihoods of farmers, cattle breeders, and milk producers, as mentioned by Chouhan in a press conference held in Bhopal.

“The government, under the leadership of the Prime Minister, is committed to alleviating challenges faced by ordinary people. From the Red Fort, he announced that transformative reforms in GST will be introduced, aimed at bringing significant relief,” the minister expressed.

As both a farmer and Agriculture Minister, Chouhan expressed gratitude towards Prime Minister Narendra Modi. He emphasized the goal of reducing agricultural production costs while simultaneously boosting output. An increase in production, coupled with a decrease in expenses, will ultimately enhance farmers' profits.

Chouhan elaborated that the recent GST reforms hold tremendous potential benefits for the farming community.

Some companies have already initiated changes; the reduction of GST to 5% on agricultural equipment such as tractors, harvesters, and rotavators is expected to be a significant advantage for farmers.

“Given that many farmers in our country operate on small landholdings, we are striving to promote integrated farming practices, where farmers can engage in multiple agricultural activities,” Chouhan stated.

For instance, if a tractor previously cost Rs 9 lakh, the farmer can now save Rs 65,000 due to the GST cut.

“The reduction of GST on products like butter and ghee will likely boost the sales of these indigenous items. Additionally, the GST reduction on milk cans will further benefit the dairy industry, leading to direct advantages for farmers and cattle rearers,” he noted.

Furthermore, the GST has been slashed on 12 biological pesticides and micronutrients. The GST on fertilizers such as ammonia, sulphuric acid, and nitric acid has also decreased from 18% to 5%, which will lower raw material costs for fertilizers, thus benefiting farmers.