Agricultural Mechanization in India

 

1. The Sub-Mission on Agricultural Mechanization (SMAM) was launched in 2014–15 as a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana (RKVY).

2. SMAM aims to promote farm mechanization among small and marginal farmers, women, Scheduled Castes (SC), Scheduled Tribes (ST), Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and rural entrepreneurs.

3. Since its inception, SMAM has provided central assistance of ₹9,404.47 crore for promoting agricultural mechanization across India.

4. Financial support under SMAM has enabled the distribution of 21.61 lakh agricultural machines to individual farmers.

5. Under SMAM, 27,554 Custom Hiring Centres (CHCs), 646 Hi-Tech Hubs, and 25,608 Farm Machinery Banks (FMBs) have been established.

6. The scheme provides subsidy through the Direct Benefit Transfer (DBT) system—40% of the machine cost for general farmers and 50% for SC/ST farmers, small and marginal farmers, and beneficiaries in North-Eastern States.

7. Small and marginal farmers receive financial assistance of ₹2,000 per hectare for availing mechanized services, including drone services, through CHCs, SHGs, and FPOs.

8. Financial assistance for establishing Custom Hiring Centres is available up to 40% of the project cost for projects costing up to ₹250 lakh, while Farm Machinery Banks receive 80% assistance for projects up to ₹30 lakh.

9. In North-Eastern States, SMAM provides enhanced support with up to 100% subsidy for small agricultural machinery and 95% assistance for Farm Machinery Banks.

10. From 2023–24 to 2025–26, the Indian Council of Agricultural Research (ICAR), State Agricultural Universities, and Krishi Vigyan Kendras (KVKs) conducted 40,928 Kisan Drone demonstrations covering 40,918 hectares.

11. A total financial assistance of ₹52.50 crore has been provided under SMAM to promote drone-based agricultural demonstrations across the country.

12. ICAR institutes, KVKs, and State Agricultural Universities receive 100% financial assistance up to ₹10 lakh per drone for demonstration and training purposes, while FPOs receive grant support up to 75%.

13. Agencies providing drone-based agricultural services receive a contingency support of ₹6,000 per hectare under SMAM.

14. The funding pattern under SMAM is 60:40 between the Centre and States for most States, 90:10 for North-Eastern and Himalayan States, and 100% Central funding for Union Territories.

15. SMAM earmarks 30% of its total funds exclusively for women farmers to improve their access to agricultural machinery and promote inclusive mechanization.

 

Must Know Terms :

 

 

1.Sub-Mission on Agricultural Mechanization (SMAM): SMAM is a Centrally Sponsored Scheme launched in 2014–15 under the Rashtriya Krishi Vikas Yojana (RKVY). It promotes farm mechanization by providing financial assistance for agricultural machinery, Custom Hiring Centres, Farm Machinery Banks, and drone-based farming.

 

2. Custom Hiring Centre (CHC): A CHC is a facility where farmers can rent agricultural machinery instead of purchasing it. Under SMAM, financial assistance of up to 40% of the project cost (up to ₹250 lakh) is provided for establishing CHCs, making mechanization affordable for small and marginal farmers.

 

3. Farm Machinery Bank (FMB): Farm Machinery Banks are institutions that maintain agricultural machinery for collective use by farmers. Under SMAM, they receive 80% financial assistance for projects up to ₹30 lakh, while North-Eastern States receive up to 95% support.

 

4. Rashtriya Krishi Vikas Yojana (RKVY): RKVY is a flagship agricultural development scheme launched in 2007 to encourage states to increase investment in agriculture and allied sectors. SMAM functions as one of its Centrally Sponsored sub-schemes.

 

5. Kisan Drone: Kisan Drones are unmanned aerial vehicles used for precision agriculture, including spraying fertilizers, nutrients, and agrochemicals. Under SMAM, ICAR institutes, Krishi Vigyan Kendras (KVKs), and State Agricultural Universities receive 100% financial assistance up to ₹10 lakh per drone for demonstrations.

 

6. Direct Benefit Transfer (DBT): Under SMAM, subsidies for purchasing agricultural machinery are transferred directly into beneficiaries’ bank accounts through the DBT system. General farmers receive 40% subsidy, while SC/ST farmers, small and marginal farmers, and beneficiaries in North-Eastern States receive 50% subsidy.

 

 

 

MCQ :

 

1. With reference to the Sub-Mission on Agricultural Mechanization (SMAM), consider the following statements:

1. It was launched during 2014–15.
2. It is a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana (RKVY).
3. It exclusively targets large farmers.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 only
C. 1 and 3 only
D. 1, 2 and 3

2. Assertion (A): SMAM aims to improve farm mechanization among small and marginal farmers.

Reason (R): The scheme provides financial assistance for agricultural machinery, Custom Hiring Centres, and Farm Machinery Banks.

A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

3. Which of the following beneficiaries are covered under SMAM?

1. Small and marginal farmers
2. Farmer Producer Organizations (FPOs)
3. Self-Help Groups (SHGs)
4. Rural entrepreneurs

Select the correct answer using the code below:

A. 1, 2 and 3 only
B. 2 and 4 only
C. 1, 2, 3 and 4
D. 1 and 4 only

4. Match List-I with List-II:

List-I List-II

A. CHC 1. Hiring of farm machinery
B. FMB 2. Collective machinery bank
C. DBT 3. Direct subsidy transfer
D. RKVY 4. Parent scheme of SMAM

Codes:

A. A-1, B-2, C-3, D-4
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-2, D-1
D. A-1, B-3, C-2, D-4

5. With reference to SMAM subsidies, consider the following statements:

1. General farmers receive 40% subsidy on agricultural machinery.
2. SC/ST farmers receive 50% subsidy.
3. Small and marginal farmers receive 50% subsidy.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

6. Under SMAM, small and marginal farmers receive financial assistance of:

A. ₹1,000 per hectare
B. ₹2,000 per hectare
C. ₹4,000 per hectare
D. ₹6,000 per hectare

7. Consider the following statements regarding Custom Hiring Centres (CHCs):

1. Financial assistance is available up to 40% of the project cost.
2. Assistance is available for projects costing up to ₹250 lakh.
3. CHCs allow farmers to rent agricultural machinery.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

8. Which one of the following correctly describes the funding pattern of SMAM?

A. 50:50 for all States
B. 60:40 for most States, 90:10 for North-Eastern and Himalayan States, and 100% Central funding for Union Territories
C. 75:25 for all States
D. 100% Central funding for all States

9. Match List-I with List-II:

List-I List-II

A. ICAR 1. Agricultural research
B. KVK 2. Farm-level extension
C. CHC 3. Machinery hiring
D. DBT 4. Subsidy transfer

Codes:

A. A-1, B-2, C-3, D-4
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-2, D-1
D. A-1, B-3, C-4, D-2

10. Assertion (A): SMAM promotes the adoption of Kisan Drones.

Reason (R): Drone demonstrations improve precision agriculture through efficient application of fertilizers, nutrients, and agrochemicals.

A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

11. With reference to Kisan Drone demonstrations under SMAM, consider the following statements:

1. They were conducted by ICAR in collaboration with State Agricultural Universities and KVKs.
2. More than 40,000 demonstrations were conducted between 2023–24 and 2025–26.
3. They covered more than 40,000 hectares.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

12. Which of the following institutions are eligible to receive 100% financial assistance up to ₹10 lakh per drone under SMAM?

1. ICAR Institutes
2. Krishi Vigyan Kendras (KVKs)
3. State Agricultural Universities

Select the correct answer using the code below:

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

13. Farm Machinery Banks (FMBs) under SMAM receive financial assistance of:

A. 40% up to ₹250 lakh
B. 60% up to ₹50 lakh
C. 80% up to ₹30 lakh
D. 95% up to ₹250 lakh

14. Which of the following statements regarding women farmers under SMAM is correct?

A. Women farmers receive 50% subsidy in all States.
B. Thirty percent of the total SMAM funds are earmarked for women farmers.
C. Women farmers receive free agricultural machinery.
D. Women farmers are eligible only through Self-Help Groups.

15. With reference to the Rashtriya Krishi Vikas Yojana (RKVY), consider the following statements:

1. It was launched in 2007.
2. It encourages States to increase investment in agriculture and allied sectors.
3. SMAM functions as one of its Centrally Sponsored sub-schemes.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3