SMAM Scheme: Financial Assistance of 40% to 80% for Farmers to Purchase Agricultural Machinery

The role of modern agricultural machinery is crucial in enhancing agricultural production and productivity. These machines help in improving the efficient use of expensive inputs like seeds, fertilizers, and irrigation water, while also reducing human labor in various agricultural operations.

The government's aim is to expand the reach of farm mechanization to small and marginal farmers, especially in regions where the availability of farm power is low. In addition, the government promotes the establishment of 'Custom Hiring Centers' (CHCs) to address the challenges posed by small landholdings and the high cost of individual ownership of agricultural machinery.

Financial Assistance under SMAM Scheme for Farmers:

The centrally sponsored 'Sub-Mission on Agricultural Mechanization' (SMAM) scheme has been implemented in all states and union territories since 2014-15, including Uttar Pradesh. Under this scheme, farmers are provided financial assistance of 40% to 50% of the cost of agricultural machinery, depending on their category.

Financial Assistance for Agricultural Machinery and Custom Hiring Centers:

Additionally, rural entrepreneurs (including rural youth and farmers as entrepreneurs), farmers' cooperative societies, registered farmers' societies, Farmer Producer Organizations (FPOs), and Panchayats are given financial assistance ranging from 40% to 80% for setting up custom hiring centers and hi-tech hubs for agricultural machines.

For the establishment of village-level Farm Machinery Banks (FMBs), farmers' cooperative societies, registered farmers' societies, FPOs, self-help groups (SHGs), and Panchayats are provided 80% financial assistance for projects costing up to ₹30 lakhs. This scheme promotes nearly all types of agricultural machines and equipment for crop production and post-production activities.

Government Initiatives for Crop Residue Management: The Department of Agriculture and Farmers Welfare aims to support the efforts of state governments in Punjab, Haryana, Uttar Pradesh, and Delhi to address air pollution caused by the burning of paddy stubble and to provide subsidies for machinery required for crop residue management. Under this scheme, farmers are provided 50% financial assistance for purchasing crop residue management machinery. The scheme promotes the use of machines like the Super Straw Management System, Happy Seeder, Super Seeder, Smart Seeder, Surface Seeder, Zero Till Seed-cum-Fertilizer Drill, and others.

80% Financial Assistance for Drones: The central government has approved a scheme for providing drones to Women's Self Help Groups (SHGs) for the period from 2023-24 to 2025-26, with an outlay of ₹1261 crores. Under this scheme, selected women SHGs will receive 80% financial assistance (CFA) for the cost of drones and accessories, with a maximum subsidy of ₹8 lakhs per drone.

10,769 Custom Hiring Centers Established: From 2014-15 to 2024-25, the central government has released ₹656.56 crores to Uttar Pradesh under the SMAM scheme. The state has distributed 176,722 machines and equipment to farmers on subsidy and has established 10,769 Custom Hiring Centers (CHCs), high-tech hubs, and Farm Machinery Banks (FMBs). Under the Crop Residue Management Scheme, ₹763.67 crores has been released to Uttar Pradesh from 2018-19 to 2024-25, with over 70,500 crop residue management machines distributed to farmers and 8,804 CHCs established.