New Delhi : The Department of Agriculture and Farmers Welfare (DA&FW) is actively implementing the ‘Sub-Mission on Agricultural Mechanization’ (SMAM) under the Rashtriya Krishi Vikas Yojana (RKVY) at the national level. The primary objective of this centrally sponsored scheme is to increase the reach of farm mechanization to small and marginal farmers, particularly in regions where the availability of farm power is low.
Massive Subsidies for Machinery and Hiring Centers To offset the adverse economies of scale caused by small landholdings and the high cost of individual machine ownership, the government is heavily promoting Custom Hiring Centers (CHCs) and Farm Machinery Banks (FMBs).
Under the SMAM scheme, the following financial assistance is provided:
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Farmers receive 40-50% financial assistance for the direct purchase of agricultural machinery and equipment.
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The establishment of Custom Hiring Centres (CHCs) is supported with 40% financial assistance for projects costing up to Rs. 250 lakhs.
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Farm Machinery Banks (FMBs) are supported with an 80% subsidy for projects costing up to Rs. 30 lakhs, while North Eastern States receive 95% financial assistance for FMB projects.
The scheme also encourages the adoption of modern farm machinery, including precision agriculture tools, drones, and women-friendly farm implements.
Tackling Stubble Burning and Boosting Horticulture Integrated with SMAM since 2023-24 on a 60:40 Centre-State funding pattern, the Crop Residue Management (CRM) Scheme is being implemented in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and Delhi. This scheme aims to promote sustainable crop residue management and reduce stubble burning through subsidized agricultural machinery and the establishment of CHCs.
Additionally, horticulture mechanization is promoted under the Mission for Integrated Development of Horticulture (MIDH) to improve farm efficiency, while the Agriculture Infrastructure Fund (AIF) provides interest subvention and credit guarantee coverage for eligible projects like CHCs and FMBs.
100% FDI and Support for Agri Startups To strengthen the domestic agricultural machinery ecosystem, the government permits 100% Foreign Direct Investment (FDI) under the automatic route in the agricultural machinery manufacturing sector. This move encourages global Original Equipment Manufacturers (OEMs) to establish production units in India and facilitates the induction of advanced technologies.
Furthermore, Agri Startups developing innovative agricultural machinery and digital solutions receive funding and incubation support through the RKVY-RAFTAAR programme. Research and development are continuously driven by the Indian Council of Agricultural Research (ICAR), which operates 105 centres across India.
Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, clarified in a written reply in the Lok Sabha today that while there is currently no specific proposal for exclusive technology transfer partnerships with countries like South Korea, international cooperation in agricultural mechanization continues through various existing bilateral and multilateral agreements.
