Lok Sabha Question No. 299 (UNSTARRED), answered on 2025-07-22
Subject: Farm Mechanization and Agricultural Workforce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Prabhakar Reddy Vemireddy

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

## LOK SABHA UNSTARRED QUESTION NO. 299

TO BE ANSWERED ON THE 22 ND  JULY 2025

## FARM MECHANIZATION AND AGRICULTURAL WORKFORCE

## 299. SHRI PRABHAKAR REDDY VEMIREDDY:

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

- (a) the reasons that the country's farm mechanization is only 45% when compared to US's 95%; Brazil's 75% and China's 60%;
- (b) whether it is a fact that the share of agricultural  workforce has dropped from 60% in 1991 to just 39% in 2023;
- (c) whether  it  is  also  a  fact  that  a  uniform  GST  rate  of  5%  or  0%  on  all  agricultural machinery  and  their  components  make  mechanization  affordable  for  small  and  marginal farmers,  stimulate  demand  in  under-mechanized  regions  and  encourage  adoption  of  new technologies; and
- (d) if  so,  the  details  of  the  plans  that  the  Government implement  to push  mechanization and increase workforce in agriculture?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

- (a):    The  adoption  of  mechanization  by  the  farmers  of  various  States  in  India  depends  on varying  factors  such  as  socio-economic  conditions,  geographical  conditions,  crops  grown, irrigation  facilities  etc.    As  per  the  estimates  of  2020-21  of  Indian  Council  of  Agricultural Research (ICAR), agricultural mechanization level varies across different crops and their farm operation  in  the  country.  Overall,  the  operation-wise  average  mechanization  levels  across crops  are  70%  for  seed-bed  preparation,  40%  for  sowing/planting/transplanting,  33%  for weeding  and  inter-culture,  and  34%  for  harvesting  and  threshing,  resulting  in  an  overall average mechanization level of 45%.
- (b): The shift in workforce from primary (agriculture) sector to secondary and tertiary sectors is  a  normal  phenomenon of  the  development  process experienced by countries  across the world and the same is true for India, as well. As per Periodic Labour Force Survey (PLFS) conducted by National Statistics Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI), the percentage of workers in the usual status engaged in agriculture and allied sector is given below:

|   S. No. | PLFS Survey year   |   Percentage of workers engaged in Agriculture |
|----------|--------------------|------------------------------------------------|
|        1 | 2020-21            |                                           46.5 |
|        2 | 2021-22            |                                           45.5 |
|        3 | 2022-23            |                                           45.8 |

Source: Annual Reports, Periodic Labour Force Survey, MoSPI. (2019-20 to 2022-23)

(c):  Agricultural  implements  like  hand  tools  and  animal-driven  tools  are  exempt  from  GST, while machinery for soil preparation and harvesting is taxed at 12%. Machines for cleaning and sorting agricultural produce are taxed at 18%.

(d):  Agriculture  is  a  State  subject  and  Government  of  India  supports  the  efforts  of  States through appropriate policy measures, budgetary allocation and various schemes/ programmes. Various schemes implemented by Department of Agriculture & Farmers Welfare supports  modem  agricultural  practices  and  technology  adoption,  boosting  productivity, promoting diversification into various agro-based sectors aiming to transform rural agriculture, enhance market access, and improve the livelihoods of farmers, encourages entrepreneurship among farmers, Farmers Producers Organization (FPOs), and start-ups for creating job opportunities.

The  Sub-Mission  on  Agricultural  Mechanization  (SMAM)  is    implemented    with  the specific aim of increasing the reach of farm mechanization to small and marginal farmers  and to  the  regions    where    availability    of    farm  power  is  low      and  promoting    'Custom  Hiring Centers (CHCs)' to offset  the adverse  economies of scale arising due to small land holding and  high  cost  of  individual  ownership  of  agricultural  machines.    Under  SMAM,  in  order  to make farm machinery more accessible and affordable to farmers, financial assistance @ 4050% of the cost of machinery depending on the category of farmers is provided for purchase of agricultural machines.  With a view to make available machines and equipments to farmers on rental basis, financial assistance for establishment of CHCs of the project cost up to Rs. 250 lakhs is provided @ 40% of the  project cost and financial  assistance for establishments of Farm Machinery Banks (FMBs) of the project cost up to Rs. 30 Lakhs is provided @ 80% of the project cost. The rate of financial assistance for establishing FMBs in the North Eastern States is @ 95% of the project cost.

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