SMAM: Spreading the Usage of Farm Machinery in India

Table of Contents

• Introduction
• What is Sub Mission on Agricultural Mechanisation?
• Objectives of Sub Mission on Agricultural Mechanisation
• Strategies of Sub Mission on Agricultural Mechanisation
• Components of Sub Mission on Agricultural Mechanisation
  • Central Sector Scheme Components
  • Centrally Sponsored Scheme Components
• Financial Assistance under Sub Mission on Agricultural Mechanisation
• Who can Avail Benefits Under the Sub Mission on Agricultural Mechanisation?
• Application Process of Sub Mission on Agricultural Mechanisation
• Documents Required under Sub Mission on Agricultural Mechanisation
• Present Status of Sub Mission on Agricultural Mechanisation

Introduction

The agricultural land area to feed more than 1 billion human population and 300 million livestock population of India is limited. It necessitates the need to increase the productivity in agriculture through agricultural mechanisation. The pace of farm mechanisation is not evenly distributed across the country. States like Punjab, Haryana, Western Uttar Pradesh and Rajasthan have higher penetration of farm equipment, whereas Eastern and North Eastern States have lower penetration.

To promote the usage of farm mechanisation and increase the ratio of farm power to cultivable unit area up to 2.5 kW/ha, the government launched the Sub Mission on Agricultural Mechanisation (SMAM) in 2014-15.

What is Sub Mission on Agricultural Mechanisation?

Sub Mission on Agricultural Mechanisation (SMAM) is a scheme of Indian government that seeks to promote the use of farm machinery by enabling the farmers to purchase at a subsidised rate or lower cost. It provides a subsidy up to 40 – 50% on purchase of farm machinery.

The scheme is a part of National Mission on Agriculture Extension and Technology (NMAET).

What are the Objectives of Sub Mission on Agricultural Mechanisation?

• Expanding the reach of farm mechanisation to the areas where farm power availability is low and to small & marginal farmers (SMF).
• To offset the unfavourable economies of scale due to small landholdings and high individual ownership cost, the scheme aims to establish Custom Hiring Centres (CHCs).
• Create hubs for high value and hi-tech agricultural equipment.
• Ensure performance testing and certification of designated testing centres all over the country.
• Create awareness among stakeholders through capacity building activities and demonstration.

What are the Strategies of Sub Mission on Agricultural Mechanisation?

• Conduct performance testing of different agricultural equipment at four Farm Machinery Training & Testing Institute (FMTTIs), designated institutions under Indian Council of Agricultural Research (ICAR) and State Agricultural Universities (SAUs).
• Conduct on-field and off-field training and demonstrations to promote farm mechanisation among stakeholders.
• Establish CHCs of location and crop-specific agricultural machinery and equipment.
• Enable farmers to procure farm machinery and implements by providing financial assistance.
• Enable SMFs to hire agricultural machinery and implements in low mechanised regions by providing them financial assistance.

What are the Components of Sub Mission on Agricultural Mechanisation?

100% Funding from the Centre (Central Sector Scheme)

1. Promotion and strengthening of farm mechanisation through testing, training and demonstration.
2. Training, demonstration and distribution of post-harvest technology & management (PHTM).

Centre and State Funding with 60:40 share pattern (Centrally Sponsored Scheme)

1. Financial assistance for procurement of farm machinery and implement.
2. Establish agricultural machinery banks for custom hiring.
3. Establish hi-tech, high productive farm equipment hub for custom hiring.
4. Promote farm mechanisation in selected villages.
5. Financial assistance for promotion of mechanised operations per hectare carried out through CHCs.
6. Promotion of agricultural machinery and implement in North-Eastern region.

In case of North-eastern states and Himalayan states the funding pattern between the Centre and the State for the components are in the ratio of 90:10.

What is the Financial Assistance under Sub Mission on Agricultural Mechanisation?

Under the SMAM, the allocation for the SC/ ST farmers is proportionate to their population in the district, the allocation for women beneficiary is 30% and at least 50% for SMFs.

Further, the subsidy component or financial assistance under the scheme for different components of the scheme are as under:

• SC, ST, SMFs, Women & North-east Farmers: 50% subsidy on the cost of agricultural equipment subject to a maximum ceiling.
• Others: 40% subsidy on the cost of farm equipment subject to a maximum ceiling.
• Post-Harvest Technology (PHTs): 50% financial assistance subject to a ceiling of INR 1.25 lakhs per machine/ technology. Additional 10% assistance up to a limit of INR 1.50 lakhs to SMFs, SC/ST farmers, women and North-east farmers.
• Custom Hiring Centres (CHCs): Financial assistance of 40 – 50% will be provided to the rural entrepreneurs and progressive farmers.
• Farm Machinery Banks (FMBs): Financial assistance of 80% of the project cost for setting up Farm Machinery Banks in selected villages.
• Drone Technology: Financial assistance of at 100% of the cost of drone up to a maximum of INR 10 lakhs per drone.

Who are Eligible to Avail Benefits Under Sub Mission on Agricultural Mechanisation?

• Small & Marginal Farmers residing in low farm power region.
• Individual Farmers, Self-Help Groups (SHGs), User Groups, Cooperative Societies and Farmer Producers Organisation (FPOs).
• Schedule Caste/ Schedule Tribes farmers, Women, and North-east farmers.
• Rural entrepreneurs and progressive farmers.

How to Apply Under Sub Mission on Agricultural Mechanisation?

To avail the benefits under SMAM, the eligible beneficiaries must fill the application form through Direct Benefit Transfer (DBT) mode. For this,

First, you need to visit the argi machinery website of the Department of Agriculture & Farmer Welfare.

Second, click the Registration tab on top ribbon of website and select the appropriate category that represents you.

Third, upon clicking the right category, registration portal will open, wherein you can register through either your Aadhar Number, Mobile Number or Name as per Aadhar.

Finally, fill the application form for purchasing of implement and submit the form.

What are the Documents Required Under Sub Mission on Agricultural Mechanisation?

• Aadhar card for identifying the beneficiary.
• Farmers’ passport size photo.
• At the time of adding land details, need to upload Record of Right (RoR) of land.
• Bank pass book’s first page copy which carries the details of beneficiary.
• For ID proof, copy of any one document out of Aadhar Card, Voter ID Card, PAN Card, Driving License or Passport.
• Caste Category Certificate copy, if you are SC, ST, or OBC.

What is the Present Status of Sub Mission on Agricultural Mechanisation?

Since the launch of the SMAM scheme, more than INR 2800 crores has been disbursed to states between the period 2014-15 and 2021-22 for distribution of farm machinery & equipment and establishment of CHCs & PHTs.

The amount of subsidy approved for single implement till date stands at more than INR 1,234 crores and for setting up CHCs stand at INR 156.96 crores.

So far, 5472 manufacturer/ dealers out of 46,239 and 11.57 lakh farmer/ entrepreneur/ SHGs/ FPOs have registered under the scheme. Also, more than 8.55 lakhs applications for single implement and 25,000 applications for CHCs have been received.