Executive Summary:
This document addresses challenges faced by arecanut farmers, specifically regarding labor shortages and the affordability of harvesting equipment. It outlines the financial assistance provided under the Sub-Mission on Agricultural Mechanization (SMAM) for purchasing harvesting machines and equipment. The document also details financial aid for establishing Farm Machinery Banks (FMBs) to provide rental-based mechanization services. These guidelines were revised in May 2025.
Key Points / Main Content:
SMAM Financial Assistance for Harvesting Equipment:
* Financial assistance is provided to farmers for purchasing agricultural machines and equipment, including harvesting and post-harvest technologies, on an individual ownership basis.
* Revised SMAM guidelines (May 2025) specify financial assistance for telescopic harvesting poles:
* Carbon poles (up to 80 feet): 50% of the cost (up to Rs. 40,000) for Small, Marginal, Women, SC/ST farmers, and farmers of North Eastern States; 40% of the cost (up to Rs. 32,000) for other farmers.
* Aluminum poles: 50% of the cost (up to Rs. 13,000) or 40% of the cost (up to Rs. 10,400) based on SMAM Guidelines.
* Other telescopic poles: 50% of the cost (up to Rs. 5,000) or 40% of the cost (up to Rs. 4,000).
* State Governments verify harvesting pole types to determine appropriate financial assistance.
Financial Assistance for Farm Machinery Banks (FMBs):
* Following the Namo Drone Didi scheme pattern, financial assistance is available for establishing FMBs.
* FMBs can receive 80% of the project cost (up to Rs. 30 Lakhs per project).
* Eligible entities: DAY-NRLM Cluster Level Federations, Women Self Help Groups, Farmer Producer Organizations, Panchayats, and Primary Agricultural Cooperative Societies.
* North Eastern States receive 95% of the project cost for establishing FMBs.
* FMBs provide rental-based crop-specific mechanization services, including processing, value addition, and crop byproduct management.
Impact Analysis:
Arecanut Farmers:
* Impact: Access to more affordable harvesting equipment through subsidies, and access to rental-based mechanization services through FMBs.
* Action Required: Apply for financial assistance through State Governments under the SMAM scheme when purchasing harvesting equipment. Utilize rental services provided by established FMBs.
State Governments:
* Impact: Responsible for implementing SMAM and verifying harvesting pole types for subsidy distribution.
* Action Required: Administer the SMAM scheme, verify equipment types, and distribute financial assistance to farmers.
DAY-NRLM Cluster Level Federations, Women Self Help Groups, Farmer Producer Organizations, Panchayats, and Primary Agricultural Cooperative Societies:
* Impact: Opportunity to establish and manage FMBs with significant financial assistance.
* Action Required: Apply for financial assistance to establish FMBs and provide rental-based mechanization services.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Shivamogga district, Karnataka: A district in the state of Karnataka, India, where arecanut farmers face challenges.
SubMission on Agricultural Mechanization SMAM: A centrally sponsored scheme providing financial assistance for agricultural machines and equipment.
SHRI B Y RAGHAVENDRA: Member of Parliament who raised a question about the challenges faced by arecanut farmers.
SHRI RAMNATH THAKUR: Minister of State for Agriculture and Farmers Welfare who provided the answer to the question.
Rashtriya Krishi Vikas Yojana RKVY: A national agricultural development program under which SMAM is implemented.
Farmer Producer Organisations FPOs: Organizations of farmers that can receive assistance for procuring harvesting tools.
Namo Drone Didi scheme: A scheme promoting the use of drones in agriculture.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1537
TO BE ANSWERED ON THE 29TH JULY 2025
CHALLENGES FACED BY ARECANUT FARMERS
1537. SHRI B Y RAGHAVENDRA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be
pleased to state:
(a) whether the Government is aware that Arecanut farmers in Shivamogga district, Karnataka,
face serious challenges in harvesting due to labour shortage and expensive equipments such
as telescopic poles;
(b) whether the Government is aware that the present subsidy under the Sub-Mission on
Agricultural Mechanization (SMAM) 4,000 for general and 5,000 for SC/ST and women farmers
for telescopic harvesting poles is well below market rates, limiting affordability;
(c) whether the Government proposes to revise and enhance subsidy limits under SMAM to make
arecanut harvesting tools more affordable and accessible; and
(d) whether the Government is considering models similar to drone support schemes such as
assistance for procuring harvesting tools through Farmer Producer Organisations (FPOs),
Cooperative Societies, Women Self Help Groups (SHGs) and Rural Entrepreneurs to promote
shared ownership and rental-based services for arecanut harvesting?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (d): Arecanut farming involves several labor-intensive activities, including harvesting.
The Department of Agriculture and Farmers Welfare is implementing Sub-Mission on Agricultural
Mechanization (SMAM) through the State Governments as one of the Centrally Sponsored
component of the Rashtriya Krishi Vikas Yojana (RKVY). Under SMAM, financial assistance is
provided to the farmers for purchase of various agricultural machines and equipments including the
harvesting and post-harvest and processing technologies on individual ownership basis.
As per the revised SMAM guidelines (revised in May 2025), the financial assistance on the
telescopic harvesting pole (carbon) up to 80 feet height is provided to the Small and Marginal,
Women, Scheduled Caste/Scheduled Tribe farmers and the farmers of the North Eastern States
@ 50% of the cost limited to Rs. 40,000/- and to other farmers @ 40% of the cost limited to Rs.
32,000/-. The financial assistance on Aluminium Poles as per SMAM Guidelines @ 50% is limited
to Rs. 13,000 and @ 40% is limited to Rs. 10,400/-. The financial assistance on the telescopic
poles other than above are provided financial assistance @ 50% limited to Rs. 5000 and @ 40%
limited to Rs. 4000. This financial assistance to farmers is provided by the State Governments upon
verifying the types of harvesting poles under appropriate categories.
Under SMAM on the similar pattern of Namo Drone Didi scheme, financial assistance for
establishments of Farm Machinery Banks (FMBs) of the project cost up to Rs. 30 Lakhs per project
is provided @ 80% of the project cost to the Deendayal Antyodaya Yojana - National Rural
Livelihoods Mission (DAY-NRLM) Cluster Level Federations (CLF) and Women Self Help Groups
(SHGs) under them, Farmer Producer Organizations (FPOs), Panchayats, Primary Agricultural
Cooperative Societies/ Cooperative Societies of Farmers (Agriculture/ Horticulture/Makhana etc.).
The rate of financial assistance for establishing FMBs in the North Eastern States is @ 95% of the
project cost. These FMBs are established to provide rental based crop specific mechanization
services to the farmers in the region including processing, value addition and crop by-product
management.
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