Overview

• After meeting farm-equipment manufacturers on September 19, Agriculture Minister Shivraj Singh Chouhan urged a full pass-through of the tax cut to farmers from the September 22 rollout.
• He cited estimated tractor price reductions of Rs 41,000 for 35 HP models, Rs 45,000 for 45 HP, Rs 53,000 for 50 HP, and Rs 63,000 for 75 HP units.
• The Centre has lowered GST on agricultural machinery to 5% from 12% and 18%, with the new rate taking effect on September 22.
• Chouhan said equipment supplied to Custom Hiring Centres should become cheaper so rental rates fall, and the ministry will monitor pass-through and run an awareness campaign.
• Industry bodies including the Tractor and Mechanization Association, the Agricultural Machinery Manufacturers Association, the All India Combine Harvester Manufacturers Association, and the Power Tiller Association participated, as the government also flagged expected price drops for implements like rice transplanters, threshers, and power weeders.