Bihar Government Changes Subsidy Scheme on Agricultural Equipment

Bihar government’s subsidy scheme on Agricultural equipment is soon going to stop. For the new Financial Year, agricultural mechanization has not been included in the plans being made in the state. 

However, the scheme of the Central Government will provide subsidy to the farmers. However, the grant on any installment shall not exceed 50 percent under any circumstances. Up to 80% subsidy can be given on some equipment related to fodder management, but the permission will have to be taken by the department.  

But earlier government used to give up to 90% subsidy on many instruments. 

Previous Years’ Condition 

Note that the Bihar government has already ceased to provide diesel subsidy to the farmers. And now stopping the subsidy on equipment. It was already guessed from the plan of the previous year. The government had made a provision of only Rs. 23 crore for the grant on the instruments that year. Department used to have around 165 crore in the previous year, and about 200 crore before that. But this year, this scheme will not get a single penny from the state head.  

There was a significant increase in agricultural mechanization in the state when the government started a scheme to provide subsidy on agricultural implements.  

Before the year 2005, no equipment other than the tractor was visible in the fields. By that time, mechanization in the agricultural sector had stagnated at 0.5 to 0.8 kilowatt per hectare for the years.  

After the creation of the agricultural roadmap, there was a lot of emphasis on increasing the seed replacement rate and mechanization rate.  

Every year, the government started giving about two hundred crore rupees as a grant to the farmers and many modern instruments started running in the fields. And surpassing the National average of 1.5, the mechanization boosted to 1.8 kilowatt per hectare. But now the pace of its progress is slowing down.  

Present Scenario 

The government believes that there is no point in giving subsidy on diesel if the power supply increases, as farmers get irrigation from the electricity. 

And likewise, when the instrument bans started being set up in the state, then the number of people buying equipment will be reduced. And those who purchase the equipment will get the grant from the Central Scheme itself.