India’s agriculture sector is getting a big boost as both Central and State governments have slashed GST rates on key agricultural equipment and related goods. The new GST rates, effective from September 22, mean that many tools and machines—such as tractors, soil preparation implements, harvesters, sprayers, and even essential spare parts—now attract just 5% tax, down from the previous 12% or 18%.
At a recent awareness rally in Bhimavaram, attended by Union Minister Bhupathi Raju Srinivasa Varma and other leaders, farmers were encouraged to take full advantage of these reforms. Notably, the event included a tractor rally, with the local District Collector and Deputy Speaker joining in to demonstrate support for the farming community.
These GST reductions are expected to ease the financial burden on farmers by significantly lowering the cost of new equipment, spare parts, and maintenance. For example, the price of popular machines like paddy transplanters, power tillers, and small tractors could drop by thousands of rupees. Lower equipment costs enable more farmers to upgrade to modern technology, resulting in improved productivity and profitability.
Leaders at the event stressed that these new rates also apply to a range of other daily essentials and sectors like healthcare, education materials, and insurance, helping Indian households save an estimated ₹3,000–₹5,000 per month.
Officials are urging custom hiring centres and farm machinery sellers to pass these benefits on directly to farmers. Alongside reduced taxes, the move is seen as a major step toward lowering agricultural production costs, raising farm incomes, and securing a brighter future for rural India.
