Lok Sabha Question No. 2517 (UNSTARRED), answered on 2021-03-09
Subject: Farm Mechanization
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: P. Velusamy, D. M. Kathir Anand

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2517

TO BE ANSWERED ON 9 th  MARCH, 2021

## FARM MECHANISATION

2517. SHRI VELUSAMY P: SHRI D.M. KATHIR ANAND:

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

- (a) whether the Government has chosen large scale farm mechanization as a tool to fulfill its promise of helping farmers to double their agricultural income by 2022;
- (b) 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 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  if  so,  the details thereof;
- (g) whether the Government has set up any committee to look into the same;

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (e): 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  dedicated  scheme  'Sub  Mission  on  Agricultural  Mechanization  (SMAM)'  has  been introduced by Government. Under the scheme subsidy is provided to the extent of 4050% for States other than NER States and for NER States it is 100% limited to Rs.1.25 lakhs  per  beneficiary  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, etc.

The  Government of India do not have agency to rent the farm machineries to the farmers at a concessional rate. However, to make available costly and bigger advanced farm machinery at the door steps of the farmers on rent basis, Government is promoting Custom  Hiring  Centres  (CHCs)  through  a  SMAM  scheme;  under  which  subsidy  is provided  @  of  40%  to  individual  farmer  upto  a  project  cost  of  Rs.60  lakh  for establishment of CHC and 80% to the group of farmers upto a project cost of Rs.10 lakh for  establishment  of  Farm  Machinery  Banks  (FMBs).    A  special  consideration  of  95% subsidy  for  the  group  of  farmers  of  North  Eastern  Region  (NER)  is  available  upto  a project  cost  of  Rs.  10  lakh  for  establishment  of  FMBs.  For  establishment  of  Hi-tech hubs, assistance @ of 40% upto a project cost of Rs.250 lakh to rural youth, farmer as an entrepreneur, farmer groups, societies, etc. is provided.

The  Government  has  also  developed  and  launched  Multi  lingual  Mobile  App 'FARMS- Farm Machinery Solutions' which  helps  the  farmers  for  getting  rented  farm machinery and implements through Custom Hiring Service Centers (CHC) in their area.

(f): The  Government  implements  the  Interest  Subvention  Scheme  (ISS)  under which  interest  subvention  is  provided  on  short  term  agri  loans  which  includes  crop Husbandry, Animal Husbandry, Dairying and Fisheries. The loan is provided upto Rs.3 lakh for a period of one year which is made available to farmers at subvented interest rate of 7% per annum and in case of timely repayment, the same gets reduced to 4% per annum.

(g):

No

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