Business · India Bureau
Farm expert urges GST cuts to stem rural exodus, boost food security
An agricultural extension specialist has called for reduced GST rates on farming inputs to make agriculture economically viable and prevent farmer migration to cities. The move, the expert argues, is critical for maintaining India's food security amid changing rural demographics.
LSN India ·
A leading agricultural extension professional has advocated for lower Goods and Services Tax rates on farming sector inputs, warning that current taxation levels are pushing cultivators away from agriculture and threatening the nation's food production capacity.
The expert contends that reduced GST on essential agricultural inputs and equipment would improve farmer profitability and create stronger economic incentives for rural communities to remain engaged in farming. Without such fiscal interventions, the argument goes, accelerating rural-to-urban migration could undermine domestic food supply chains.
Current GST structures on agricultural machinery, seeds, fertilizers, and other farming essentials have been identified as a significant cost burden on cultivators, particularly small and marginal farmers who operate on thin margins. The proposal seeks to realign tax policy to support agricultural viability across income levels.
The push for GST rationalization comes as India grapples with broader agricultural challenges, including labor shortages in farming communities and declining youth participation in cultivation. Policy experts increasingly recognize that fiscal measures may be necessary to sustain agricultural productivity and rural livelihoods while securing national food requirements.