Lok Sabha Question No. 1500 (UNSTARRED), answered on 2020-02-11
Subject: Farm Mechanisation for Doubling Farmers’ Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: K. Shanmuga Sundaram

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.1500

TO BE ANSWERED ON THE 11 TH  FEBRUARY, 2020

## FARM MECHANISATION FOR DOUBLING FARMERS' INCOME

1500.  SHRI SHANMUGA SUNDARAM K.:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government has chosen large scale farm mechanisation as a tool to fulfil its promise of helping farmers to double their agricultural income by 2022;
- (b) if  so,  whether  the  Government  is  having  any  proposal  to  substitute  human  labour  on farms with machinery to save agricultural costs and to boost the production;
- (c) if so, the details thereof;
- (d) whether the Government is having any agencies to rent out the farm machineries to the farmers at a concessional rate;
- (e) if so, the details thereof;
- (f) whether  the  Government  is  having  any  proposal  to  grant  soft  loans  with  a  reduced interest rate for purchase of farm machineries to the farmers; and
- (g) if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (c): Improved agricultural implements and machinery are essential inputs for modern agriculture. It enhances productivity besides reducing human drudgery and cost of cultivation. It also helps in improving utilization efficiency of other inputs.

Taking  into  consideration  the  above,  to  boost  the  farm  mechanization  in  the country, a special dedicated scheme Sub Mission on Agricultural Mechanization (SMAM) has been introduced by Government, under which subsidy is provided for purchase of various types of Agricultural implements and machinery used for tillage, sowing, planting, harvesting, reaping, threshing, plant protection, inter cultivation and residue management.

A special Scheme to support the efforts of the Governments of Haryana, Punjab, Uttar  Pradesh  and  the  NCT  of  Delhi  to  address  air  pollution  due  to  stubble  burning  and  to subsidize  machinery  for  the  farmers  for  in-situ  management  of  crop  residue,  a  new  Central Sector Scheme on ''Promotion of Agricultural Mechanization for In-Situ  Management of Crop Residue  in  the  States  of  Punjab,  Haryana,  Uttar  Pradesh  and  NCT  of  Delhi'  (CRM)  for  the period from 2018-19 to 2019-20 has been also launched.

(d) & (e):     Some of the State Governments like Kerala, Tamil Nadu and Madhya Pradesh are providing  farm  machineries  to  the  farmers  at  a  concessional  rate  through  their  Agricultural Departments.

However, to make available costly and bigger advance farm machinery at the door steps  of  the  farmers  on  rent  basis,  Government  is  promoting  Custom  Hiring  Centres  (CHC) through  a  SMAM scheme;  under  which  subsidy  is  provided  @  of  40%  of  the  project  cost  to individual  farmer  upto  a  project  cost  of  Rs.60  lakh  and  80%  to  the  group  of  farmers  upto  a project cost of Rs. 10 lakh.  A special consideration for the farmers of North Eastern Region (NER) is available, 95% subsidy upto a project cost of Rs. 10 lakh is provided to group of NER farmers for establishment of Custom Hiring Centres. For establishment of Hi-tech and Hi-value agricultural machinery CHC,  assistance @ of 40% of the project cost to individual farmer upto a project cost of Rs.250 lakh is provided. Under the CRM scheme to establish Custom Hiring of in-situ crop residue management machinery a financial assistance @ 80% of the project cost is provided to the farmers.

The Government has also developed and launched Multi lingual Mobile App 'CHCFarm Machinery' which helps the farmers for getting  rented  farm  machinery and implements through  Custom  Hiring  Service  Centers  (CHC)  in  their  area.  As  on  date,  44,607  CHCs  with 1,39,319 Agricultural machinery for renting out are registered on this Mobile app. Total 1,14,461 farmers as users are registered on this Mobile App.

(f)  &  (g): The  Government  has  introduced  the  Kisan  Credit  Card  (KCC)  Scheme,  which enables farmers to purchase agricultural inputs and draw cash to satisfy their agricultural and consumption  needs.    The  KCC  Scheme  has  since  been  simplified  and  converted  into  ATM enabled  RuPay  debit  card  with,  inter  alia,  facilities  of  one-time  documentation,  built-in  cost escalation in the limit, any number of drawals within the limit, etc.

With a view to ensure availability of agriculture credit at a reduced interest rate of 7% p.a. to the farmers, an interest subvention scheme for short term crop loans upto Rs.3.00 lakh is implemented.  The scheme provides interest subvention of 2% per annum to Banks on use of their own resources.  Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.

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