Agriculture extension expert seeks reduction in GST rates for agriculture sector to keep farmers in agriculture and ensure food security

K. Narayana Gowda has written a letter to the Chief Minister demanding a reduction in GST rates for the agriculture sector as it is essential to retain farmers in the sector and ensure food security of the country. | Photo credit: File Photo

Ahead of the GST Council meeting scheduled for Wednesday in Delhi, International Society for Extension Education President and former Vice-Chancellor of UAS-B K. Narayana Gowda demanded a reduction in GST rates for the agriculture sector, citing the need to retain farmers in the sector and ensure the country’s food security. He argued that it had become more relevant now because of the drought.

Dr. Gowda has written to Karnataka Chief Minister DK Shivakumar, appealing to him to ask for a rate cut when he attends the GST Council meeting.

He said in the letter that farmers were directly affected as all farm inputs, including fertilizers and micronutrients, were placed on the higher 18% GST threshold and plant protection chemicals, weedicides and bio-nutrients were placed on the 9% GST slab. Agricultural implements and farm machinery have also been placed on a higher slab with 18% GST and micro irrigation kits such as sprinklers and drip irrigation components have been placed on a slab with 12% GST.

He said there was also an indirect impact as secondary agriculture such as value addition and processing sector, which is key to turning agriculture into a profitable business, has yet to take off due to high GST rates, despite the establishment of a separate ministry for food processing.

“The cost of machinery used for value added and processed food products is covered by 18% GST. This policy comes in the way of many enthusiastic and aspiring entrepreneurs involved in value addition and processing of agricultural products,” he argued.

“Under these circumstances, it is appropriate to fix GST at 3% on all agricultural inputs as it would increase profit margins for farmers, besides increasing food production and also food security of the country in the long run,” he suggested.

It also proposed a reduced GST rate of 5% on machinery used for value addition and processing and 3% GST on value added and processed agricultural products. “This will attract entrepreneurs to take up value addition and processing in a big way, besides minimizing huge post-harvest losses estimated at over ₹ 92,000 crore annually as per General Agricultural Data-March 2023,” he said.

Published – 06 Oct 2026 20:55 IST