The Department of Agriculture in the Andaman and Nicobar Islands has stepped up efforts to modernise the farming sector by introducing subsidies and establishing Custom Hiring Centres, aimed at making agricultural machinery more accessible to farmers across the islands. Implemented under the PM-RKVY Sub-Mission on Agricultural Mechanization (SMAM) scheme, the initiative is designed to ease financial burdens and promote mechanised farming, particularly for small and marginal farmers.
The scheme provides subsidies on a wide range of farm equipment, making it easier for cultivators to adopt modern technologies. Women and SC/ST farmers are eligible for a 50 percent subsidy, while other farmers can avail of 40 percent support on the cost of equipment. This targeted assistance ensures that farmers most in need, especially those with smaller land holdings, are able to modernise their practices without facing prohibitive costs.
The list of equipment covered under the scheme is extensive, spanning basic to advanced tools. Farmers can apply for subsidies on tractors, power tillers, seeders, harvesters, and paddy threshers, along with horticultural machinery such as chain saws and wheel barrows. Specialised machines for land development and tillage, dehydration units, humidifiers, and packing machines for crops like horticulture produce, food grains, and oilseeds are also included. More advanced equipment such as boilers, steamers, driers, and extractors have been brought under the scheme to support post-harvest processing and value addition.
In addition to subsidies for direct purchases, the Agriculture Department has introduced Custom Hiring Centres (CHCs) as a critical support mechanism. These centres allow farmers to access farm machinery on rent, ensuring that even those unable to buy equipment individually can still benefit from modern technology. For setting up CHCs, eligible beneficiaries can receive financial assistance covering up to 40 percent of the project cost, subject to prescribed subsidy limits.
The beneficiaries of this initiative are diverse, reflecting an effort to promote entrepreneurship in rural areas while strengthening collective farming institutions. Rural youth, self-help groups under DAY-NRLM, registered farmers’ societies, cooperative societies, farmer producer organisations, and even Panchayats are all eligible to establish CHCs. By expanding access through these community-driven centres, the administration aims to reduce input costs, improve time efficiency, and boost productivity in agriculture.
Officials have highlighted that the availability of machinery through CHCs could significantly ease constraints faced by farmers, particularly in remote parts of the islands where access to modern tools is limited. By sharing resources through rental systems, small farmers who traditionally rely on manual labour can shift toward mechanisation, leading to higher yields and more efficient use of land and labour.
Beyond immediate cost savings, the scheme is expected to contribute to long-term resilience in farming. Mechanisation can help reduce drudgery, improve precision in agricultural operations, and allow farmers to diversify into more profitable crop systems. With better tools for harvesting, processing, and packaging, farmers may also be able to tap into value-added markets rather than relying solely on raw produce sales.
The Agriculture Department has urged interested farmers, farmer producer organisations, and other eligible groups to contact their nearest Agriculture Sub-Depot or Zonal Agriculture Office for application procedures and detailed guidelines. For further information, assistance is also available through the Kisan Call Centre via a toll-free helpline.
The initiatives mark an important step in bridging the gap between traditional practices and modern agricultural methods in the islands. With financial support and institutional mechanisms like Custom Hiring Centres, the administration hopes to empower farmers with tools that can reduce costs, increase efficiency, and ultimately make farming a more sustainable livelihood in the Andaman and Nicobar Islands.
