Sub-Mission on Agricultural Mechanization (SMAM) Promoting Custom Hiring Centres

Indian agrarian economy has nearly 82% of small and marginal farmers, here the amount spend on inputs during the crop cycle is much higher as compared to the cost received by the farmer at the end. To increase the cost-benefit ratio for farmers, farm mechanization practices play a crucial role. On-time availability of farm machines, implements, and equipment is the major concern for farmers. This will lead to an increased cost of cultivation by delay followed by post-harvest losses as these farmers cannot invest in costly farm machinery. Small and marginal farmers looking to get access to costly farm machinery to perform timely farm operations. Also, efficient use of inputs, machines at reasonable hiring charges, and a reduction in the cost of cultivation. Let’s discuss about Sub-Mission on Agricultural Mechanization (SMAM) Scheme for promoting Custom Hiring Centres.

SMAM Scheme:
Intending to fulfil these needs The Ministry of Agriculture and Farmers Welfare launched SMAM in 2014-15. Under it, a subsidy is provided for the purchase of various types of agricultural equipment and machinery to the extent of 40-50% for States other than NER (North Eastern Region) States and the NER States, it is 100% limited to Rs.1.25 lakhs per beneficiary. The agricultural ministry has also created a Multilingual Mobile App called 'CHC (Custom Hiring Centres) - Farm Machinery,' which connects farmers with Custom Hiring Service Centres in their area.

The Mechanization aids in boosting the efficiency of other inputs, making it one of the most significant parts of the agricultural sector for increasing farmer income and the agricultural economy's growth. For the country's agricultural mechanisation to be strengthened and more inclusion to be achieved The Sub-Mission on Agricultural Mechanization (SMAM) was established with the primary goal of promoting 'Custom Hiring Centres' and 'Hi-tech Hubs of High-Value Machines' to counteract the negative economies of scale caused by tiny and fragmented landholdings and high individual ownership costs.

About Custom Hiring Centres (CHC):
Customer hiring centres are a grouping of agricultural machinery, tools, and equipment available for bespoke hire by farmers. There is an electronic weighing machine, a power reaper, multifunctional pulverisers, a dal mill, a power tiller, a backpack sprayer, a power sprayer, a weeder, an SRI marker, seed treatment, a drum seed cum fertilizer driller, a chaff cutter, a maize sheller, and other agricultural gear available. CHC has the ability to meet farmers' agricultural machinery needs with all of these implements.

Benefits: 
CHC will make available various farm machinery/equipment to small and marginal farmers, reduce high-cost individual risk of machinery and keep mechanization in places. CHC also brings services for various agricultural machinery/implements applied for different operations at the doorstep and expand mechanized activity during the cropping season, which will reduce the cost of farmers. It will provide 40% subsidy assistance to farmers, farmer groups, and entrepreneurs for the establishment of block-based Custom Hiring Centres and 80% subsidy assistance to farmer cooperative societies, self-help groups, FPOs, and other organizations for the establishment of village-based Farm Machinery Banks.

Status of Scheme: 
Government of India to provide all modern and costly implements/equipment to small and marginal farmers set up 42000 CHC in the country which rent to farmers for carried out agriculture operations. Agricultural Mechanization Scheme assists up to 10 lakhs in which 80 per cent grant is payable and 20 percent of the amount raised by the farmer's groups itself or bank loan.  

Agricultural Mechanization is one of the key drivers for the development of the agriculture sector and in the case of CHC’s, it was discovered that the low rental rates set with the intention of serving farmers were unable to reach the breakeven point in the operation of CHCs. Furthermore, many of the devices were only used for a single season, resulting in a reduction in the number of operational hours. As a result, it is proposed that the government fund CHC’s benefit rural farmers. To be precise customer hiring centre can transform the country's agricultural mechanization landscape by including a wider range of players, from farmers to entrepreneurs with financial backing, and by providing all necessary equipment throughout the crop's life cycle.