New Delhi, Sep 4 (PTI) Industry leaders across agriculture and dairy sectors on Thursday welcomed the government’s decision to reduce GST rates on key agricultural inputs and dairy products, calling it a major relief for farmers grappling with rising input costs and weather uncertainties.
The GST Council’s move to slash rates on fertilisers, biopesticides, farm equipment and dairy products is expected to boost farmer incomes while making nutritious food more affordable for consumers.
Sunil Kataria, CEO and MD of Godrej Agrovet Ltd, said the GST reduction on fertilisers and biopesticides would provide “big relief” to farmers at a time when agricultural crops have been adversely impacted by erratic weather patterns.
“With average input costs making up around 30-40 per cent of total cultivation expenses, lowering these costs will increase accessibility of quality crop protection solutions, thereby helping farmers enhance yield and boost income,” Kataria said in a statement.
The executive added that the decision to reduce GST on dairy products to 5 per cent would impro affordability and consumption, addressing the country’s protein deficiency while uplifting sdairy farming families.
Narinder Mittal, President & Managing Director of CNH India, hailed the GST reduction on farm equipment, components and tyres to 5 per cent, saying it would accelerate mechanisation by making tractors, harvesters and implements more affordable.
“These reforms will empower industry players to address labour shortages, enhance farmer productivity, and promote sustainable practices,” Mittal said, adding that the move provides the right environment for further localisation and innovation.
He noted that the reform was particularly timely ahead of the harvesting season, as lower costs would enable more farmers to adopt baling solutions, potentially reducing crop residue burning.
Divya Kumar Gulati, Chairman of the Compound Livestock Feed Manufacturers’ Association of India (CLFMA), termed the GST reduction on dairy products a “progressive step” that would benefit India’s 80 million dairy farmers.
With UHT milk becoming tax-free and products like condensed milk, butter, ghee, paneer and cheese moving from 12 per cent to 5 per cent, the reforms are expected to boost rural incomes and encourage greater investment in feed and animal care.
Devendra Shah, Chairman of Parag Milk Foods Ltd, said the move would particularly benefit price-sensitive rural and semi-urban consumers. “Higher demand will allow farmers better income stability and confidence to invest in better cattle care and feed,” he said.
RG Agarwal, Chairman Emeritus of Dhanuka Agritech, called the GST reduction a “big Diwali gift” for farmers, particularly praising cuts on agri-drones, gibberellic acid and bio-pesticides, including trichoderma, pseudomonas fluorescens and neem-based products.
“This will encourage farmers to shift toward safer biological options, contributing to improved soil health and long-term agricultural performance,” Agarwal said.
A He added that correcting the inverted duty structure on fertiliser raw materials would enhance production viability and ensure timely supply of essential nutrients at reduced costs.
Welcoming the reforms, Agarwal noted opportunities for further rationalisation, particularly in crop protection chemicals based on advanced chemistries and certain raw materials that continue to be taxed at elevated rates. PTI LUX TRB.
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