The Sub-Mission on Agricultural Mechanization (SMAM) was launched in the financial year 2014-15 by the Government of India under the administrative control of the Ministry of Agriculture and Farmers Welfare. It operates as a Centrally Sponsored Scheme aimed at increasing the reach of farm mechanization to small and marginal farmers and regions where the availability of farm power is notably low. The scheme acts as a critical catalyst in shifting Indian agriculture from traditional labor-intensive practices to modern, technology-driven, and highly efficient mechanized farming operations.
Core Objectives of the SMAM Scheme
- The primary objective is to increase the reach of farm mechanization to small and marginal farmers, who constitute more than 86 percent of India’s total agricultural landholdings.
- The scheme aims to promote Custom Hiring Centres (CHCs) to offset the adverse economies of scale arising from small landholdings and the high capital cost of agricultural machinery.
- It seeks to create hubs for high-tech and high-value farm machinery to facilitate their availability to farmers on a rental basis.
- The initiative focuses on creating awareness among stakeholders through demonstration and capacity-building activities conducted by designated testing and training institutes.
- It aims to ensure performance testing and certification of agricultural machineries at designated testing centers located across the country to maintain quality standards.
Key Components and Strategic Interventions
The scheme is executed through a multi-pronged strategy that encompasses financial assistance, institutional support, and technology demonstration.
Custom Hiring Centres (CHCs) and Farm Machinery Banks
- The scheme provides financial assistance for the establishment of Custom Hiring Centres (CHCs) at the village level to provide agricultural machinery on a rental basis to farmers who cannot afford to purchase them.
- Farm Machinery Banks (FMBs) are established at the village level specifically to address regional disparities in farm mechanization and provide localized access to essential equipment.
- High-Tech Hubs are established at the district or block levels to provide advanced and high-value agricultural machinery like sugarcane harvesters, cotton pickers, and multi-crop planters on a custom hiring basis.
Financial Assistance and Subsidy Structure
- Individual farmers are provided with financial assistance ranging from 40 percent to 50 percent of the cost of the machinery for the procurement of essential agricultural equipment like tractors, power tillers, and specialized crop-specific tools.
- Targeted beneficiaries, including Small and Marginal Farmers, Women, and farmers belonging to Scheduled Castes (SC) and Scheduled Tribes (ST), receive a higher subsidy of up to 50 percent for machinery procurement.
- To promote collective ownership, rural entrepreneurs, cooperative societies, and Farmer Producer Organizations (FPOs) receive up to 80 percent financial assistance for setting up Custom Hiring Centres with a project cost of up to Rupees 10 Lakh.
Funding Pattern and Administrative Architecture
The Sub-Mission on Agricultural Mechanization is implemented as a Centrally Sponsored Scheme with a defined cost-sharing mechanism between the Central and State Governments.
Technological Interventions: Drones and Digital Ecosystem
The Ministry has continuously updated the SMAM guidelines to integrate cutting-edge technology and digital solutions into the Indian agricultural framework.
Promotion of Kisan Drones
- The government has amended SMAM guidelines to explicitly promote drone technology in agriculture by providing heavy financial assistance for drone procurement and demonstration.
- Institutions like the Indian Council of Agricultural Research (ICAR), Krishi Vigyan Kendras (KVKs), and State Agriculture Universities receive a 100 percent grant, up to a maximum of Rupees 10 Lakh per drone, for purchasing drones for demonstration purposes.
- Farmer Producer Organizations (FPOs) are eligible to receive grants up to 75 percent of the cost of the agriculture drone for its demonstration on farmers’ fields.
- Individual farmers purchasing drones receive specific subsidies: 50 percent (up to Rupees 5 Lakh) for SC, ST, small and marginal farmers, and women, while other farmers receive 40 percent (up to Rupees 4 Lakh) financial assistance.
FARMS Mobile Application
- The government launched the Multi-lingual Mobile App FARMS (Farm Machinery Solutions) to connect farmers seamlessly with Custom Hiring Centres.
- The application functions similarly to prominent ride-hailing services, allowing farmers to book agricultural machinery on rent from nearby CHCs, thereby bridging the gap between service providers and end-users.