Government is Offering 50-80% Subsidy for Purchasing Agri Machines and Equipment

Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar said that the adoption of modern machines and equipment by the farmers depends on various factors like socioeconomic conditions, geographical conditions, irrigation facilities, crop grown etc. 

However, the Central Government supports and facilitates the State Governments through different Centrally Sponsored as well as Central Sector Schemes to endorse agriculture throughout the nation by introducing modern technologies into the agriculture sector.

Sub-Mission on Agricultural Mechanization’ (SMAM)

For the promotion of agricultural mechanization in the country, a Centrally Sponsored Scheme known as ‘Sub-Mission on Agricultural Mechanization’ (SMAM) is being implemented by the State Governments since 2014-15, with the main objective of expanding the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low.

And by promoting ‘Custom Hiring Centres’ to balance the adverse economies of scale arising due to small landholding & high cost of individual ownership.

50% subsidy is provided for buying machines

In order to make machines and equipment affordable to the farmers, a financial assistance at 40 percent to 50 percent of the cost depending on the categories of growers, is provided under the SMAM scheme for the purchase of agricultural machines. 

Moreover, financial assistance at 40 percent of the project cost is also given to the rural youth and farmer as an entrepreneur, Cooperative Societies of Farmers, Registered Farmers Societies, Farmer Producer Organizations (FPOs) & Panchayats for the establishment of Custom Hiring Centres (CHCs) and Hi-tech hubs of high-value agricultural machines.

80 percent subsidy is given for setting up village-level Farm Machinery Banks (FMBs)

In addition, financial assistance at 80 percent of the project cost for projects costing up to Rs. 10 Lakhs is given to the Cooperative Societies, Registered Farmer Societies, FPOs & Panchayats for setting up of village-level Farm Machinery Banks (FMBs). The rate of financial assistance for the North Eastern States for the establishment of FMBs is 95 percent of the project cost for the projects costing up to Rs. 10 lakhs.

Source - PIB