Hyderabad: Telangana Agriculture and Handloom Minister Tummala Nageswara Rao on Thursday urged the Union government to remove GST on farm equipment and handloom products. He also demanded restoration of import duty on crude palm oil to protect farmers and weavers.
During a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi, Rao submitted three separate representations. Each one outlined the adverse impact of current tax policies on the state’s rural economy.
GST duty demand farmers weavers: 12% levy slowing agri modernisation
In the first memorandum, the minister sought a full exemption from the 12% Goods and Services Tax (GST) on agricultural machinery, equipment, and micro-irrigation systems. He said the tax was a major burden on small and marginal farmers. As a result, mechanisation and modern irrigation adoption were slowing down.
“The financial strain from GST is delaying the use of essential tools that can improve productivity and food security,” Rao stated. He urged the Centre to act swiftly in farmers’ interest.
Handloom sector hit by 5% GST, says minister
In the second appeal, Rao called for the removal of 5% GST on handloom products. According to him, the tax was forcing traditional weavers to abandon their craft.
Telangana has over 23,000 registered weavers and 34,000 support workers. Many work on heritage textiles such as Pochampally Ikkat, Gadwala Silk, Narayanpet Silk, Gollabhama Sarees, Warangal Durries, and Karimnagar bedsheets.
“The high cost of production, coupled with GST, has made handloom items non-competitive in the market,” he said. Therefore, he demanded a complete GST exemption, similar to that offered to Khadi products.
Rollback of palm oil duty crucial for oil palm farmers
In his third representation, Rao raised concerns over the reduced customs duty on crude palm oil. The Centre recently slashed it from 27.5% to 16.5%. This move, he said, had harmed domestic growers by reducing the price of Fresh Fruit Bunches (FFBs).
Telangana has India’s largest oil palm cultivation area, spread over 1.06 lakh hectares. Nearly 72,000 farmers depend on it. Rao asked the Centre to restore the earlier 44% duty and maintain a stable import policy. This, he said, was crucial during the implementation of the National Mission on Edible Oils – Oil Palm (NMEO-OP).
Rao stressed that Telangana remains committed to protecting rural livelihoods. However, he added, urgent support from the Centre is vital. “Protecting farmers and weavers is not just a welfare issue it’s about securing food security and preserving cultural heritage,” he said.
