Although these companies sell products in retail, none of these agricultural machines were manufactured by these companies in Jharkhand. 

This harsh and sad reality has gained significance since the Union Ministry of Agriculture is running a mega scheme called Sub-Mission on Agricultural Mechanisation (SMAM). 

Has this SMAM benefited farmers in Jharkhand?

Investigation revealed that the answer lies in a two letter word- NO.

However, consider first what this SMAM scheme is all about. It is designed by the Union Ministry to promote inclusive and efficient farm mechanisation by improving access to modern agricultural equipment, reducing drudgery, and enhancing farm productivity.

More, it aims to promote Agricultural Mechanization through training, testing, demonstration, and post-harvest mechanization.

Also, it is meant to enhance farm productivity and efficiency by improving access to modern agricultural technologies.

How about Financial Assistance for the Procurement of Agricultural Machinery and Equipment? It provides subsidy support for individual ownership of agricultural machinery through the Direct Benefit Transfer (DBT) system. 

It covers 40% of the machine cost for general beneficiaries and 50% for SC/ST farmers, small and marginal farmers, and beneficiaries in North-Eastern states. Small and marginal farmers receive Rs 2,000 per hectare for mechanized services, including drones, through CHCs, SHGs, and FPOs.

Already, the Ministry had Farm Machinery Banks (FMBs) for Custom Hiring: for farm mechanization through 80–90% financial support for SHGs, FPOs, and local institutions to acquire agricultural machinery. 

Financial assistance for CHCs is available at 40 percent of the project cost for projects up to ₹250 lakh, while FMBs receive 80 percent support for projects up to ₹30 lakh.

The Ministry claims to establish Hi-Tech and High-Productivity Equipment Hubs:  Equipped with advanced, high-capacity machinery for crop-specific operations to improve operational efficiency and access to high-value equipment.

Promotion of Agricultural Mechanization in the North Eastern Region (NER): Provides enhanced support in North-Eastern states through region-specific interventions, including up to 100% subsidy for small machinery and 95% support for Farm Machinery Banks.

Inquiry revealed that under SMAM, from 2014–15 to 2025–26, central assistance of ₹9,404.47 crore has supported the distribution of 21.61 lakh machines to individual farmers. Additionally, it supported the establishment of 27,554 Custom Hiring Centers,646 Hi-tech Hubs, and 25,608 Farm Machinery Banks.

Under SMAM, the number of beneficiaries for individual farm machinery ownership increased from 2.07 lakh in 2020–21 to 2.32 lakh in 2024–25, reflecting an overall expansion in scheme coverage.

The scheme follows a cost-sharing arrangement between the Central and State Governments. For most states, the funding pattern is 60:40, while for North-Eastern and Himalayan states, it is 90:10. In the case of Union Territories, assistance is provided as 100 percent Central funding. This differentiated funding structure facilitates broader mechanization adoption across diverse regional contexts.

How is SMAM Scaling Drone-Based Farming?

SMAM aims to encourage the use of drones to improve agricultural operations. With financial support of ₹52.50 crore under the scheme, the Indian Council of Agricultural Research (ICAR) has promoted drone adoption through large-scale field demonstrations across the country.

During 2023–24 to 2025–26, ICAR, in collaboration with State Agricultural Universities and Krishi Vigyan Kendra (KVKs), conducted 40,928 Kisan Drone demonstrations across covering 40,918 hectares. These demonstrations focused on the application of nutrients, fertilizers, and agrochemicals in accordance with prescribed standard operating procedures.

To facilitate widespread adoption, SMAM provides financial assistance for drone procurement and demonstrations. Eligible institutions such as ICAR institutes, KVKs, and State Agricultural Universities receive 100 percent financial support of up to ₹10 lakh per drone for these activities. 

Farmer-Producer Organizations (FPOs) are eligible for grant support of up to 75 percent. In addition, agencies utilizing drones through service models are supported with a contingency expenditure of ₹6,000 per hectare.

Further, SMAM places a strong focus on inclusivity, earmarking 30 percent of total funds for women farmers. This provision aims to enhance their access to agricultural machinery and promote greater participation in mechanized farming systems.

Bridging Gaps, Boosting Growth: The SMAM Effect

SMAM has emerged as a key intervention in strengthening agricultural productivity, efficiency, and inclusiveness. 

By focusing on small and marginal farmers, women, SC/ST communities, and underserved regions, the scheme has helped bridge critical gaps in mechanization through subsidies, Custom Hiring Centre, Farm Machinery Banks, and targeted regional support. 

Its emphasis on training, demonstrations, post-harvest management, and emerging technologies such as drones reflects a forward-looking approach to modernizing agriculture. 

By creating institutional infrastructure, SMAM has contributed to reducing labor drudgery, improving the timeliness of operations, and supporting higher farm productivity.