New Delhi: Union Agriculture and Rural Development Minister Shivraj Singh Chouhan on Saturday said that the recent reduction in Goods and Services Tax (GST) rates on agricultural equipment will significantly lower farming costs and enhance farmer profits. Speaking to the media in Bhopal, Chouhan explained that GST on bio-pesticides and micro-nutrients has been reduced, encouraging a shift towards bio-fertilizers, which will further benefit farmers.

The minister also highlighted that GST exemption on milk and cheese will not only help consumers but also farmers, cattle breeders, and milk producers. “The government’s aim is to reduce the cost of production in agriculture while increasing overall output. If production goes up and costs come down, farmers’ profits will naturally rise,” Chouhan said, citing the Ministry of Agriculture & Farmers Welfare.

According to him, the reduction of GST to 5 per cent on key farm equipment such as tractors, harvesters, and rotavators will be a boon for farmers. He emphasized that sectors linked to agriculture, including animal husbandry, poultry, fish farming, beekeeping, and sheep-goat rearing, will also benefit from exemptions under the revised GST regime.

Chouhan further noted that GST on energy-based equipment has been reduced from 12 per cent to 5 per cent, making research-oriented tools more affordable. “These reforms will empower farmers to become energy providers themselves. Similarly, drip irrigation systems have also become cheaper, enabling water conservation, higher productivity, and increased farmer profits,” he added.

Finance Minister Nirmala Sitharaman earlier this week announced a major overhaul of GST slabs as part of the “Next-Generation GST” reform initiative. The government consolidated the 12 per cent and 18 per cent slabs into a simpler structure of 5 per cent and 18 per cent, with a 40 per cent rate reserved for sin goods. The reforms aim to make the tax system more efficient, boost affordability, and strengthen consumption.