All You Need to Know About Farm Mechanization Scheme

By Tori 4 years ago

Farm mechanization in India is lower when compared to other countries like China, the United States of America, and Brazil. The Government of India introduced a sub-mission on Agricultural Mechanization (SMAM) in 2014 – 2015. Under this scheme, the state governments will provide demonstration and training for various agricultural machinery. Additionally, it offers assistance to the farmers for procuring different equipment and machinery.

Farm mechanization scheme

Total fund allocation from 2014–2015 to 2018–2019 was INR 3377.07 crore and for 2018 – 2019, it was INR 1027.46 crore. In the last four years, the Government of India has focused on promoting the latest agricultural equipment, such as power weeders, laser leveler, and happy seeders.

The steady growth in tractor sales indicates the increasing mechanization in the farming industry. Over the last four decades, the compounded annual growth rate (CAGR) in the tractor industry is estimated at 10%. The thrust given by the farm mechanization scheme has increased the CAGR of this market by 7.53% during 2016 – 2018.

Benefits of the scheme

The SMAM scheme offers between 50% to 80% as subsidies on various agricultural implements. It is available for farmers across the country, which includes female farmers too. Here is how farmers may apply for the scheme:

  • Visit the government portal Direct Benefit Transfer (DBT) in Agriculture
  • Complete the registration procedure
  • Click on the ‘Farmer’ option
  • Input all the details correctly

Documents needed include

  • Aadhar card
  • Caste category certificate, if applicable
  • Right to land (ROR)
  • Identity proof
  • Copy of the first page of the bank passbook
  • Passport size photo

It is important to provide accurate details to avail of the subsidy.

Tractor loans

Farmers may also opt for an affordable tractor loan to make their purchase. Several leading banks and non-banking financial companies (NBFCs) like Mahindra Finance offer such loans with beneficial features, such as;

  • Quick approval procedure
  • Available for different types of tractors
  • Reasonabletractor loan interest rates
  • No additional requirement of mortgaging the agricultural land
  • Flexible repayment options between three months to five years
  • Higher loan amounts based on individual requirements and financial status
  • Simple and hassle-free tractor loan documentsrequired; these include know-your-customer (KYC), land ownership, and income proof
  • Versatile down payment as per the financial situation of the applicants

Borrowers may consider using an online equated monthly installment (EMI) calculator to know the approximate amount they need to pay towards loan repayment. To know more about tractor loan eligibility and other norms, applicants may visit the Mahindra Finance website.