The technology has penetrated deeper into various sectors of the economy, and the agriculture sector has not been untouched from this penetration. From the exhausting manual labor to the cost-efficient farm equipment, technology has given a 360 degree turn to agriculture and for the greater good. Many farmers are striving to adapt the revolutionary technologies but do not have the financial resources to buy them. And this section of farmers is large. To be more inclusive for such a section of farmers, the government of India provides subsidy on agri-machinery and equipment to keep them aligned with the latest trend.
There are several pieces of equipment and machinery that are available for subsidy under the Central Sector Plan Schemes. Farmers can avail of the subsidy at 25 percent of the cost of equipment, which is subject to certain ceiling limit. In this article, we take the responsibility of sharing with you a proper list of that agricultural equipment on which subsidy is available and the rate of subsidy applicable to them as on date.
Subsidies on Agricultural Machinery in India
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Power Tiller
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Tractor
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Power Threshers (all types)
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Power Drawn implements
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Animal drawn implements
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Sprinklers
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Drip Irrigation
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Plant Protection Equipment: Tractor mounted, Manual and Power operated
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Manually operated implements
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Horticultural Tools
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Paddy transplanter
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Self Propelled reaper and other self-propelled machines
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Power-driven equipment (potato planter, sugarcane cutter planter, straw reaper, rotavator, tractor-drawn reaper, strip-till drill, etc.
The above-mentioned equipment are the machines for which one might get a subsidy. To understand it deeper, let's look at the scheme under which these subsidies are available to the farmers.
Macro-Management of Agriculture Scheme
One of the centrally-sponsored schemes, Macro-Management of Agriculture Scheme ensures that central assistance is spent on focused and specific interventions for all development of agriculture in states. Under this scheme, the states have provided the flexibility to develop and pursue activities on the basis of their regional priorities. The states are free to include new interventions in their work plans provided these are not covered under any other scheme of the Central Government or are not part of any ongoing State scheme. Another important thing about this scheme is that the expenditure on any new initiative should not be more than 10% of the total allocation to the state.
An important thing to note here is that the subsidy per farmer or per activity should not exceed 25% of the cost or the present subsidy level approved under 27 identified schemes, whichever is lower. Besides, the subsidy is also available on identified agricultural implements under the schemes of oilseeds production program National Pulses Development Project, Technology Mission on Cotton, Technology Mission on Horticulture for North Eastern Region.
