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Mechanization & Technology Division,Department of Agriculture & Cooperation,
Ministry of Agriculture,Krishi Bhawan,
New Delhi
04/19/231
Farm Mechanization
Farm Mechanization: EverywhereFarm Mechanization: Everywhere
04/19/232
Tillage & seedbed
Preparation
Tillage & seedbed
Preparation
Sowing/ PlantingSowing/ Planting
Fertiliser ApplicationFertiliser
Application IrrigationIrrigation HarvestingHarvesting Post Harvesting
Post Harvesting
Inter CultivationInter Cultivation
Plant ProtectionPlant Protection
Mechanized Solutions for whole chain
Mechanisation is clearly the answer to key performance parameter at every stage of cropping
cycle
Mechanisation is clearly the answer to key performance parameter at every stage of cropping
cycle
INDIAN AGRICULTURE STRENGTH
04/19/233
•Highest Arable Land - 47% of total land
against Avg. 11 % in the world
•Round the Year Cultivation - 20
Agro-climatic regions and 46 Soil types suited
for round the year cultivation
•Ranks first in production of Pulses, Tea, Jute
and allied fibers
•Second largest producer of Wheat, Rice,
Groundnut, Fruits and Vegetables, Sugarcane &
Third largest producer of Mustard, Potatoes,
Cotton lint, etc.102.8 Million Farmers, over 7.5% owns > 4 ha. Avg farm land size <2 ha,
LARGE > 10 ha
(1.2 mil)Medium 4-10 ha
(6.3 mil)
Semi medium 2-4 ha
(13.1 mil)
Small 1 -2 ha
( 20.9 mil)
Marginal < 1 ha
(61.3 mil)
Average Land Holding and Number of Farmers
Farm Mechanization: Key Driver
04/19/234 Productivity has positive correlation with Mechanization level
FICCI-YES Bank Report, 2009
Farm Mechanization : Key Driver for ProductivityFarm Mechanization : Key Driver for Productivity
04/19/235
Increase in Production
Productivity increase [Yield/ha]
Enhancing Cropping intensity
Farm MechanisationKey Driver
Means
Objective
Need For Accelerated Farm MechanizationNeed For Accelerated Farm Mechanization
04/19/236
Essential driver for sustaining agricultural growth
Positive correlation between farm power availability and agricultural productivity
Addressing scarcity of agricultural labourClimate Change MitigationNotwithstanding advantages:
Growth of farm mechanization (farm power/ha) is poor in last decade ; and
Level of mechanization is significantly low in many potential regions ( Eastern, North Eastern)
The Need The Need
04/19/237
To bridge existing policy gaps and to envisages an inclusive growth of farm mechanization;
One integrated Mission aiming an accelerated but inclusive growth of agricultural mechanization in India;
Sub Mission on Agricultural Mechanization (SMAM)
Focus AreasFocus Areas
04/19/238
Small and Marginal Farmers;Reaching the unreached:
Lowly mechanized villages;Custom Hiring Services:
Entrepreneurship;Creating ownershipCapacity/Awareness
building
Mission Objectives
04/19/239
Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low;
Offsetting adverse ‘economies of scale’ and ‘higher cost of ownership’ of high value farm equipment by promoting ‘Custom Hiring Centre’ for agricultural machinery;
Passing on the benefit of hi-tech, high value and hi-productive agricultural machinery to farmers through creating hubs for such farm equipment.
Mission Objectives
04/19/2310
Promoting farm mechanization by creating awareness among stakeholders through demonstration and capacity building activities;
Ensuring quality control of newly developed agricultural machinery through performance evaluation of newly developed agricultural machinery and equipment and certifying them at designated testing centers located all over the country.
Proposals on Agricultural Mechanization during 12th Five Year Plan
04/19/2311
Sr.No. Components
1 Promotion & Strengthening of Agricultural Mechanisation through Training Testing & Demonstration
2 Post Harvest Technology and Management
3 Financial assistance or Procurement Subsidy for selected Agriculture Machinery and Equipments
4 Establishment of farm Machinery Banks for Custom Hiring
5 Establishing Hi-Tech Productive Equipment Centres to Target Low Productive Agricultural Regions.
6 Enhancing Farm Productivity at Village Level by introducing appropriate farm mechanization in selected villages.
7 Creating ownership of appropriate farm equipment among small and marginal farmers in the eastern/north eastern regions.
04/19/2312
Sub ComponentPattern of Assistance
Implementing Agencies
Beneficiaries
Human Resource Development and Capacity building in the field of farm mechanization through in house/ at farmers’ field training conducted by FMTTI’s
Not ApplicableFarm Machinery Training & Testing Institutes
Farmers & other stake holders
Testing of agricultural machines and equipments for their performance evaluation and quality up-gradation through existing FMTTIs.
Not Applicable
Farm Machinery Training & Testing Institutes
Manufacturers/Trade /Importer of agriculture equipments
Procurement and Demonstration of newly developed agricultural / horticultural equipments at farmers’ fields. An illustrative list of equipment eligible for demonstration is at Annexure-A
100% on procurement of equipment and Rs. 5000/-per demonstration in all areas except in hilly regions where it will be Rs. 7500/- per demonstration.
State Governments/ICAR Institutions
Farmers
Training of farmers/users/stakeholders by Institutions identified by State
Govt./ICAR
Rs. 4000/- per trainee per week. Including boarding/lodging and transport
Institutions identified by State Governments/ICAR
Farmers & other stake holders
Strengthening of designated SAU’s/ICAR Institutions/Govt.
Agencies for undertaking testing of agricultural equipment
One time grant upto Rs. 1.5 crore
Designated SAUs /ICAR Institutions/Government agencies
Designated SAUs /ICAR Institutions/Government agencies
Component No.1:Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration
04/19/2313
Sub Component Pattern of Assistance Implementing
AgencyBeneficiaries
Establishment of units for transfer of primary processing technology, value addition, low cost scientific storage, packaging units and technologies for bi-product management in the production catchments. An illustrative list of equipment eligible for this sub component.
50% of the project cost subject to ceiling of Rs. 6 lakh per project for SHG/UG/Cooperatives/NGO;sOR 50% of the project cost subject to ceiling Rs. 2.5 lakh per for individual beneficiary.
State Governments/ICAR
Self Help Group (SHG)/ User Groups (UG) of farmers, Cooperative Societies of Farmers and NGOs /Farmers/Rural Entrepreneurs
Procurement and Demonstration of newly developed /appropriate Post Harvest Technologies.An illustrative list of equipment eligible for demonstration.
100% of the procurement cost of the equipment AND
Rs. 5000/- per demonstration
For hilly region assistance will be Rs. 7500/- per
demonstration
State Governments/ICAR
Farmers/End users
Training of Farmers, Entrepreneurs and Scientists in areas related to Post Harvest Technology.
Rs. 4000/- per trainee per week. Including
boarding/lodging and transport
State Governments/ICAR
Farmers and other stake
holders
Component No.2: Post Harvest Technology & Management
Sub Component Pattern of AssistanceImplementing
AgenciesBeneficiaries
Tractor upto 25 hp (PTO)
50% of cost of procurement subjected to a ceiling of Rs. 1.75 lakh. Additional 20% assistance to small and marginal farmers
State Government
Individual farmers
Tractor above 25 hp (PTO)
50% of cost of procurement subjected to a ceiling of Rs. 2.0 lakh
State Government
Individual farmers
Power Tiller with
implements
50% of cost of procurement subjected to a ceiling of Rs. 1.25 lakh. Additional 20% assistance to small and marginal farmers
State Government
Individual farmers
Combine Harvesters of
all types
50% of cost of procurement subjected to a ceiling of Rs. 5.0 lakh
State Government
Individual farmers
All other self propelled equipment
including Plant Protection equipment
50% of cost of procurement subjected to a ceiling of Rs. 1.25 lakh. Additional 20% assistance to small and marginal farmers
State Government
Individual farmers
04/19/2314
Component No.3:Financial assistance or Procurement Subsidy for selected Agriculture Machinery and Equipments
All kind of tractor driven equipment/
implements including Plant
Protection equipment
50% of cost of procurement subjected to a ceiling of Rs. 0.75 lakh. Additional 20% assistance to small and marginal farmers
State GovernmentsIndividual farmers
All manual /animal drawn
equipment/implements/Tools
including Plant Protection equipment
50% of cost of procurement subjected to a ceiling of Rs. 0.50 lakh. Additional 20% assistance to small and marginal farmers.
State Governments Individual farmers
04/19/2315
Individual Ownership OR. Custom HiringIndividual Ownership OR. Custom Hiring
Key Question is How to cater marginal and small farmers who aggregate to > 80% of cultivators
04/19/2317
Establishment of farm Machinery Banks for Custom Hiring
a) Procurement subsidy for establishment of Custom Hiring Centers
b) Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Credit Guarantee Fund
c) Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Venture Capital Fund
Component No.4
Component No.4(a):Procurement subsidy for establishment of Custom Hiring Centers
04/19/2318
Pattern of Assistance
Implementing Agencies
Beneficiaries
50% of the total cost of procurement subject to a limit of Rs. 0.30 Crore per Centre.
State Govt.
Individual Entrepreneurs/Self Help Group (SHG)/ User Groups (UG)
of farmers, Cooperative Societies of
Farmers
Ministry of Agriculture
Government of India
Credit Guarantee Fund
Implementing Agency
Entrepreneurs
May be parked
with NABARD/
NCDC
In the beginning ,Government may be contribute
100% share of Corpus., Later
banks ,manufacturers may be join
increase the corpus.
04/19/2319
Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Credit Guarantee Fund.
May be NABOCNS/
NAFED/NCDC
04/19/2320
Sr.No
Silent Features of Credit Guarantee Fund
1. Upto 80% of Initial Capital Cost (including working capital) will be financed/refinanced by the CGF holders against inadequate/without collateral. Entrepreneurs will bring remaining 20% either through own or through financing. Assets thus created will be hypotheacated as per extent norms.
2. All individuals / cooperatives/ NGOs are eligible to avail the facility.
3. There will be a maximum limit of investment in each centre.
4. Entrepreneurs will be provided three years grace period that include EMI and interest. Opportunity cost for far going EMI / interest will be adjusted against CGF.
5. Implementing agency shall be the single – window –interface between entrepreneurs and CGF holders.
6. IA will help creating/building assets.
7. IA will charge the stipulated service fees both from entrepreneurs as well as from CGF holders.
8. Entrepreneurs will pack back the loan after grace period as per condition of the loan.
Ministry of Agriculture
Government of India
Venture Capital Fund
Implementing Agency
Entrepreneurs
May be parked
with NABARD/
NCDC
In the beginning ,Governmen
t may be contribute 100% share of Corpus.,
Later banks ,manufacturers may be join increase
the corpus.
04/19/2321
Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Venture Capital Fund
May be NABOCNS/
NAFED/NCDC
04/19/2322
Sr.No
Silent Features of Venture Capital Fund
1 Upto 80% of Initial Capital Cost (including working capital) will be funded. Entrepreneurs will bring remaining 20% either through own or through financing.
2 All individuals / cooperatives/ NGOs are eligible to avail the facility.
3. There will be a maximum limit of investment in each centre.
4 Entrepreneurs should pay back the VC amount within a stipulated period and after availing initial grace period.
5 Implementing agency shall be the single – window –interface between entrepreneurs and VCF holders.
6 Assets will be created / built by the IA on behalf of VCF holders and will be on lease to entrepreneurs.
7. There will be a profit sharing model between VCF holders and entrepreneurs.
8. IA will charge the stipulated service fees. After full realization of VC assets will be transferred to entrepreneurs.
Operationalisation of VCF/CGF
04/19/2323
The Implementing agency(IA):To act as sole ,single window interface between fund
holder and entrepreneurTo provide end –to –end solution to Entrepreneurs
starting from Project Appraisal sanctioning of Loan, assets creation ,technical support etc.
To monitor the performance of Custom Hiring Centres and appraisal potential strength /weaknesses.
To create awareness about the scheme and market it among potential users through road show ,print advertisement ,electronic media etc.
IA will charge service cum consultancy fees at a stipulated rate both from fund holder as well as from Entrepreneurs.
Operationalisation of VCF/CGF
04/19/2324
The Implementing agency(IA):To act as sole ,single window interface between fund
holder and entrepreneurTo provide end –to –end solution to Entrepreneurs
starting from Project Appraisal sanctioning of Loan, assets creation ,technical support etc.
To monitor the performance of Custom Hiring Centres and appraisal potential strength /weaknesses.
To create awareness about the scheme and market it among potential users through road show ,print advertisement ,electronic media etc.
IA will charge service cum consultancy fees at a stipulated rate both from fund holder as well as from Entrepreneurs.
Component No.5:Procurement subsidy for establishment of Hi
Tech Hub
04/19/2325
Pattern of Assistance
Implementing Agencies Beneficiaries
40% of the total cost of procurement subject to a limit of Rs. 1.0 Crore per Hub.
State Govt.
Individual Entrepreneurs
/Self Help Group (SHG)/ User
Groups (UG) of farmers,
Cooperative Societies of
Farmers
Component No.6:Enhancing Farm Productivity at Village Level by introducing appropriate farm
mechanization in selected villages.
04/19/2326
Pattern of Assistance
Implementing Agencies
Beneficiaries
80% of the total cost of
procurement upto a limit of Rs. 10 lakhs
per village. *
State Govt.
Farmers /SHG/User Groups/ Farmer’s cooperatives in
villages where level of farm
mechanization is very less.
Component 7: Creating ownership of appropriate farm equipments among small and marginal farmers in the eastern /north eastern regions
04/19/2327
Pattern of Assistance
Implementing AgencyBeneficiari
es100% of the total cost of procurement upto
a limit of Rs. 1.25 lakhs per farmers. **An illustrative list of eligible equipment for this component
State Governments
Small/Marginal
farmers in eastern/nort
h eastern region
04/19/2328
THANKING YOU