India's micro-irrigation firms rally on hopes of zero tax on farm equipment

Jain Irrigation Systems

20/08/2025 07:05

** Shares of micro-irrigation companies Jain Irrigation Systems JAIR.NS and Mahindra EPC Irrigation MHID.NS rise 3.5% and 20%, respectively, extending previous session gains of 6.3% and 2.5%

** Rally fueled by expectations of zero GST on sprinklers and other irrigation equipment, which are currently taxed at 12%

** NDTV Profit reports, citing sources, about a government proposal to remove GST on key farm tools, signaling relief for agri-input costs

** Indian government is pushing for the country's biggest tax overhaul in eight years, aiming to cut levies on everyday goods and shift to a simplified two-slab GST structure

** GST Council likely to decide on tax reforms in September–October meeting

** Year-to-date, JAIR down 25%, while MHID up 35%

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))