National Farm Mechanisation Policy
Source: PIB
GS III: Agriculture- Technology Missions
Overview
- India is promoting agricultural mechanisation through financial support, shared machinery services, technology and private-sector participation.
- The focus is on improving machinery access for small and marginal farmers facing high ownership costs and small landholdings.
- Key initiatives include SMAM, CRM, MIDH and AIF, supported by agricultural mechanisation research through ICAR.
- The broader aim is to make mechanisation productive, affordable and sustainable while reducing farm drudgery.
- International cooperation supports research, technology transfer and capacity building in agricultural mechanisation.
Why in the News?
The Ministry of Agriculture & Farmers Welfare highlighted measures being implemented to promote agricultural mechanisation, particularly for small and marginal farmers.
News in Brief
- The government’s mechanisation approach seeks to address the low level of farm power availability and the challenges posed by India’s predominantly small and fragmented holdings.
- Agricultural mechanisation is being complemented by R&D, private-sector participation and domestic manufacturing, including support for agri-startups developing machinery and digital solutions.
- India also undertakes bilateral and multilateral cooperation in agricultural mechanisation through research, technology transfer, capacity building and exchange of expertise.
Key Highlights
Sub-Mission on Agricultural Mechanization (SMAM)
- It is centrally sponsored scheme under the umbrella of Rashtriya Krishi Vikas Yojana (RKVY) .
- It aims to increase the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low.
- Promote ‘Custom Hiring Centers’ to offset the adverse economies of scale arising due to small land holding and high cost of individual ownership of agricultural machines.
- Encourage adoption of modern farm machinery, including precision agriculture tools, drones and other advanced mechanization technologies and women-friendly farm implements.
- Under SMAM, farmers receive 40–50% financial assistance for purchasing agricultural machinery and equipment.
- The scheme also provides 40% assistance for establishing Custom Hiring Centres (CHCs) for projects costing up to ₹250 lakh, while Farm Machinery Banks (FMBs) receive 80% assistance for projects up to ₹30 lakh. In the North-Eastern States, assistance for FMBs is higher at 95% of the project cost.
Crop Residue Management (CRM) Scheme
- The CRM Scheme aims to reduce stubble burning by promoting sustainable crop residue management through the provision of subsidized agricultural machinery, establishment of Custom Hiring Centres (CHCs), including other measures.
- Implemented in the State of Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and NCT of Delhi.
Mission for Integrated Development of Horticulture (MIDH)
- Under this mission Horticulture mechanization is promoted to improve farm efficiency and reduce drudgery of farm work force.
- Provide assistance for procurement of power operated machines and tools including plant protection equipment including import of new machines.
Agriculture Infrastructure Fund (AIF)
- Support is provided in the form of interest subvention, credit guarantee coverage, and medium to long term debt financing for eligible agriculture infrastructure projects like CHCs and FMBs.
Indian Council of Agricultural Research (ICAR)
- ICAR undertakes Research and Development in agricultural mechanization.
- Reviews global technological developments and adopts suitable innovations and best practices, wherever appropriate, to improve the efficiency, productivity and sustainability of Indian agriculture.
Foreign Direct Investment (FDI)
- The Government permits 100% Foreign Direct Investment (FDI) under the automatic route in the agricultural machinery manufacturing sector.
- This encourage global Original Equipment Manufacturers (OEMs) to establish domestic production units.
- This promotes domestic manufacturing, strengthens the agricultural machinery ecosystem and facilitates the induction of advanced technologies in Indian agriculture.
Private-Sector Participation- Agri Startups
- Participation of domestic and private sector enterprises in manufacturing, innovation, and mechanization services are also encouraged to accelerate the adoption of modern agricultural technologies.
- The Agri Startups develops innovative agricultural machinery and digital mechanization solutions.
- They receive support through incubation, innovation challenges and funding under RKVY- Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RAFTAAR) programme.
- The Government promotes private-sector-led mechanization service delivery through CHCs and machinery rental platforms, allowing farmers to hire equipment instead of purchasing it.
- The Government has also simplified testing and certification procedures for agricultural machinery to promote quality standards and ensure faster market access for manufacturers.
Bilateral and Multilateral Cooperation
- International cooperation in the field of agriculture, including agricultural mechanization, is undertaken with various countries.
- Such cooperation encompasses collaborative research, technology transfer, capacity building, exchange of expertise, and other mutually agreed activities in accordance with the provisions of the respective agreements.
Conclusion
A farmer-centric approach to mechanisation, supported by affordable access to modern technology, shared machinery services and capacity building, can enhance farm productivity while reducing cultivation costs and drudgery.
Strengthening such interventions can make agricultural mechanisation more inclusive, efficient and sustainable.
Key Takeaways
UPSC Prelims and Mains Practice Question
Consider the following statements regarding agricultural mechanisation in India:
- SMAM is implemented under the Rashtriya Krishi Vikas Yojana (RKVY).
- Custom Hiring Centres (CHCs) enable farmers to access agricultural machinery without purchasing it individually.
- The Government permits 100% FDI under the automatic route in agricultural machinery manufacturing.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (d) 1, 2 and 3
Mains Practice Question
Q. “Agricultural mechanisation can play a significant role in improving farm productivity and reducing the cost of cultivation in India. Discuss the challenges and suggest measures to promote inclusive agricultural mechanisation.” (250 Words)
Daily Current Affairs: Click Here