New Delhi, In a move set to boost rural incomes and curb inflation, the government has announced GST rate cuts across dairy products, agricultural inputs, tractors, and logistics services, a decision expected to directly benefit over 10 crore farmers, according to the Ministry of Cooperation.
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🥛 Dairy Sector Relief
- Milk and paneer exempted from GST.
- Lower tax on dairy processing equipment will improve operating margins for cooperatives and individual farmers.
- Major brands like Amul have welcomed the move, citing it as a push to strengthen the dairy cooperative model that supports millions of small producers.
🚜 Support for Agriculture & Inputs
- Tractors and key components now taxed at lower rates, cutting input costs for small and marginal farmers.
- Fertiliser GST restructuring resolves the inverted duty structure, preventing a rise in prices during sowing seasons.
- Bio-pesticides made cheaper, supporting the government’s natural farming mission and reducing reliance on chemicals.
📦 Food Processing & Logistics Boost
- Reduced GST on food processing machinery to encourage value addition and rural entrepreneurship.
- Lower tax on commercial vehicles expected to cut logistics costs, reduce freight rates, and enhance India’s export competitiveness.
🌱 Broader Impact
- Strengthens cooperative sector and supports rural supply chains.
- Expected to reduce household expenditure on essential food items.
- Encourages sustainable farming practices through cheaper bio-inputs.
The Ministry of Cooperation described the reform as “one of the most comprehensive sector-focused GST restructurings”, with cascading benefits for rural employment, entrepreneurship, and food security.
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