GST reforms to benefit one lakh farmers in Gujarat, purchase deadline extended
Gujarat Agriculture Minister Raghavji Patel announced that the state government has extended the deadline for farmers to purchase tractors and farm equipment under the Agricultural Mechanisation Scheme, enabling them to benefit from the revised GST rates, set to take effect from September 22.
Under the reforms, GST on tractors has been reduced from 12 per cent to 5 per cent, while tyres and other tractor parts have seen a cut from 18 per cent to 5 per cent. Similarly, GST on farm mechanisation tools and micro-irrigation equipment has been slashed from 12 per cent to 5 per cent, and micro-nutrients and bio-pesticides will now attract only 5 per cent GST instead of 12 per cent. The rate on ammonia and sulphuric acid- key raw materials for fertiliser production - has also been lowered from 18 per cent to 5 per cent.
Minister Patel informed the Assembly that the move, undertaken in line with GST reforms spearheaded by Prime Minister Narendra Modi, would substantially reduce input costs in agriculture.
"The price of tractors will come down significantly. Farmers will now save an additional Rs 35,000 to Rs 45,000 over and above the state subsidy of Rs 1 lakh on tractor purchases," he told the Assembly.
He added that nearly one lakh farmers across Gujarat are expected to gain from the decision, which will not only lower the cost of mechanisation and irrigation tools but also boost domestic fertiliser production, ensuring a timely supply for cultivators.
The state government, he stressed, remains committed to strengthening agricultural mechanisation and easing financial pressure on farmers. Gujarat is home to a large agrarian population, with agriculture engaging more than half of the state’s workforce.
According to the Agriculture Census 2015-16 (the latest comprehensive dataset available), the state had around 61.2 lakh operational holdings, of which nearly 75 per cent were small and marginal farmers owning less than two hectares of land. These holdings together cover about 9.5 million hectares of cultivated land, making Gujarat one of India’s major agricultural states.
The main crops grown are cotton, groundnut, wheat, rice, bajra, maize, sugarcane, and various horticultural crops. Livestock rearing also plays an important role, particularly in districts like Kutch and Saurashtra.
