A New Era for Indian Agriculture: PM Modi’s GST Reforms
The new Goods and Services Tax (GST) rates are being hailed as a major win for India’s agriculture and dairy sectors. With significant reductions in taxes, farmers, agricultural workers, and livestock owners across the country are expressing their gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. Agriculture Minister Shivraj Singh Chouhan has called the new rates a “revolutionary decision” poised to bring historic change.
These reforms will have a widespread impact, especially on small and medium farmers. Lower GST on crucial equipment and inputs will reduce farming costs and boost profits. The changes are set to benefit a wide range of sectors, from animal husbandry and beekeeping to fisheries and poultry farming.
Key Benefits of the GST Rate Cuts
- Cheaper Machinery: GST on agricultural equipment like tractors, power tillers, and harvesters has been reduced from as high as 18% to just 5%. This will make essential machinery more affordable, helping farmers save time, cut labor costs, and improve productivity. The table in the provided text shows a potential savings of over ₹41,000 on a 35 HP tractor and ₹1,87,500 on a harvester combine.
- Reduced Farming Costs: The GST on bio-pesticides, micronutrients, and fertilizers has been cut, encouraging farmers to shift towards more sustainable, eco-friendly practices. Lower taxes on solar-powered devices will also reduce irrigation costs.
- Zero Tax on Essential Dairy Products: Milk and cheese now have zero GST, which directly benefits consumers, dairy farmers, and producers. The GST on other products like butter and ghee has been reduced to 5%.
- Boost for Food Processing: GST on prepared and preserved fruits and vegetables has been lowered to 5%, which will help reduce wastage, support the food processing industry, and make India a stronger agri-export hub.
- Support for Allied Sectors: The GST on “prepared or preserved fish” is now 5%, encouraging the aquaculture sector. The tax on natural honey has also been reduced, a move that benefits beekeepers and tribal communities. The livelihood of tribal communities will also be strengthened by the GST cut on tendu leaves from 18% to 5%.
Overall, these GST reforms are a pro-farmer and pro-sustainability move designed to lower costs, increase profits, and make India’s domestic food production more competitive.