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Financial Assistance at 40% to 50% of the Cost is Provided under SMAM to make Machines and Equipments Affordable to the Farmers.
Apr 04, 2022
The adoption of modern machines and equipments by the farmers depends on various factors such as socioeconomic conditions, geographical conditions, crop grown, irrigation facilities etc. However, the Government of India supports and facilitates the State Governments through various Centrally Sponsored and Central Sector Schemes to promote agriculture throughout the country and infusing modern technologies into the agriculture sector. For promotion of agricultural mechanization in the country, a Centrally Sponsored Scheme ‘Sub-Mission on Agricultural Mechanization’ (SMAM) is being implemented through the State Governments w.e.f. 2014-15, with the major objectives of increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low and promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership.
In order to make machines and equipments affordable to the farmers, financial assistance @ 40% to 50% of the cost depending on the categories of farmers, is provided under SMAM for purchase of agricultural machines. Financial assistance @ 40% of the project cost is also provided to rural youth & farmer as an entrepreneur, Cooperative Societies of Farmers, Registered Farmers Societies, Farmer Producer Organizations (FPOs) and Panchayats for establishment of Custom Hiring Centres (CHCs) and Hi-tech hubs of high value agricultural machines. Financial assistance @ 80% of the project cost for the projects costing up to Rs. 10 Lakhs is provided to the Cooperative Societies, Registered Farmer Societies, FPOs and Panchayats for setting up of village level Farm Machinery Banks (FMBs). The rate of financial assistance for the North Eastern States for establishment of FMBs is @95% of the project cost for the projects costing up to Rs. 10 lakhs.
This information was given by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in a written reply in Rajya Sabha today.
pib.gov.in
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