Reduced prices of farm equipment under the GST 2.0 will help air pollution abatement efforts

NEW DELHI: Reduced Goods and Services Tax (GST) from 12%-18% to 5% on various agricultural machinery will not just directly benefit farmers in terms of reducing retail prices of farm equipment by 7%-13% but also help in air pollution abatement efforts by making all those farm equipment which are used for handling paddy stubble cheaper.As a result, farmers may opt for such equipment/machinery — happy seeder, super seeder, straw reaper, baler square and mulcher — more widely instead of resorting to stubble burning that leads to air pollution crisis every winter.Data shows that the price of these farm equipment will be reduced by Rs 21,875 for straw reaper (five ft), Rs 16,875 for super seeder (eight ft), Rs 10,625 for happy seeder (10 tyne), Rs 93,750 for baler square (six ft) and Rs 11,562 for each mulcher (eight ft) with effect from Sept 22.

These machines are used for either in-situ or ex-situ management of paddy straw.Reduced prices under the GST 2.0 regime will also make the hiring of these farm equipment on rent cheaper at custom hiring centres (CHC), which will now get machines at lower prices. It will ensure affordability for small and medium farmers, encouraging them to opt for managing stubble sustainably either within their farms or transporting it outside for other usage.

Union agriculture minister Shivraj Singh Chouhan on Friday held a meeting with industry players to ensure the smooth implementation of the recent cut in GST on tractors and other farm equipment.The minister after the meeting shared a detailed list, outlining the extent of price reduction of different farm equipment and tractors. He also urged the representatives of machine manufacturers associations to minimise the role of middlemen and ensure that the farmers directly receive the benefits of GST reforms.Information about GST rate reduction will be communicated to farmers during the upcoming second phase of the ‘Viksit Krishi Sankalp Abhiyan’ for Rabi crops, beginning Oct 3, so that they can make the best use of it for advanced farming and better management of paddy straw in different states.