On recommendations of the Gujarat Electricity Regulatory Commission, the government had effected a three-fold hike in the power tariff for the farm sector.
This was to reduce the mounting power subsidy running to over Rs 55 crore a month and pave way for reforms in the sector.
The government aimed at bringing down the subsidy to around Rs 35 crore a month, but with this rollback, the government will still have to pay a subsidy of over 40 crore a month.
The farmers were also told to pay a five per cent electricity duty and this had sparked off protests in several districts of the state.
Bharatiya Kisan Sangh has not agreed to the new rates and is demanding full withdrawal of the tariff hike.
State agriculture minister Bhupendrasinh Chudasama said the rollback would hit power reforms and the revenues of the Gujarat Electricity Board (GEB).
However, the minister said the reforms are an ongoing process and the sentiments of farmers could not be ignored.