PTI New Delhi

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% 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. The executive added that the decision to reduce GST on dairy products to 5% would improve affordability and consumption, addressing the country's protein deficiency while uplifting dairy farming families.

Narinder Mittal, President & Managing Director of CNH India, hailed the GST reduction on farm equipment, components and tyres to 5%, 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.