Business Standard

Govt to boost hiring of agri machinery in 12th Plan

To get outlay of Rs 20,000-25,000 cr proposal for subisdised loans, too

Related News

The government has decided on a comprehensive push for mechanisation of agriculture, by setting up machinery hiring centres in every village in the 12th Plan period.

These machinery is to be leased for harvest with support from states and the Centre (in either a 10:90 or 20:80 proportion). The entire mission is expected to get an outlay of Rs 20,000-25,000 crore, sources said.

According to senior official sources, this will be part of a new technological mission on agricultural extension. Officials said the machinery would also be provided for off-season usage, like tractors for transportation. Only a few private companies were engaged in manufacture of agricultural machinery and these were quite expensive for the average farmer to procure during harvest. A gram panchayat or some well-to-do farmers might procure these for harvest, but everybody could not reap the benefit. Officials also hope this measure would prod private manufacturers to bring down prices.

The selection of machinery for a region would be based on the cropping pattern. For example, machines for rice plantation in rice growing regions, cotton pickers for western and parts for southern India, soil levellers across the country, among others. Besides, the technology part of the mission will involve importing it for various machinery from foreign countries, by buying the patents. After that , the government proposes to give these franchises to Indian manufacturers to start mass production. Technology will be primarily imported from America, Brazil, China and Australia, where there is large-scale mechanisation in agriculture.

Besides, the Union ministry of agriculture proposes to extend subsidised loans at four per cent for mechanisation. The proposal, being worked on, aims at encouraging farmers to create assets by purchasing machines. At present, loans at a subsidised four per cent are only available for crop-related inputs like seeds and farming.

The government is putting more emphasis on creation of assets in agriculture. Sources said while agriculture remains the mainstay for the Indian economy, mechanisation is weak and restricted to big farmers. On the other hand, India has a big contribution in the global food and agriculture market, exporting and importing foodgrain and cash crops on a large scale. At the same time, many uncertain factors affect agriculture and sale of equipment in India, such as the monsoon, government-declared support prices for crops, commodity prices, crop production expenses (costs) and the credit policy.

Read more on:   
|
|

Read More

FMC finds huge disparity in open position & trade volume

Commodity market regulator FMC has found huge disparity between the ratio of open interest and the volume of trading in some commodities traded on ...

Quick Links

 

Market News

Double digit earnings to cheer markets in FY16

Analysts expect earnings surprises from consumer discretionary, financial and industrial sectors

Markets in evolution offer tremendous opportunities: Chitra Ramakrishna

The CEO of National Stock Exchange expects to see more retail savings enter the stock market

Domestic market not showing revival, ceramic units look global

Ceramic industries face reduction in business because of slowdown in real estate sector

Sebi slaps over Rs 21 cr fine on Gujarat Arth promoters, PACs

Sebi has slapped a hefty penalty of over Rs 21 crore on Gujarat Arth Ltd's promoters and persons acting in concert (PACs) for fraudulent ...

Indiabulls Securities pays Rs 1 crore to Sebi to settle allegations

The settlement charges were invoked after the irregularities were found in the company's broking operations

Back to Top