India is a predominantly agricultural country. Because agriculture employs a large section of our population, it becomes a top priority to provide financial support through numerous channels. The federal government, as well as state administrations in various states, have introduced multiple tractor subsidy schemes in 2023 aimed at helping farmers.
Now, with the growth of technology, advancement in the field of agriculture is also required in order to get a high yield with minimal input. Machinery plays a critical part in achieving this, and we shall address the subsidy for tractors here. Because agricultural machinery is expensive and out of reach for the typical farmer, the central government has introduced the following tractor schemes for farmers.
A tractor subsidy is a government payment made directly or indirectly to individuals or businesses, usually in the form of cash or a targeted tax decrease. According to economic theory, Subsidies can be used to counteract market failures and externalities in order to achieve improved economic efficiency. A subsidy is a monetary transfer to a third party by the government.
As a result, the subsidized product's price drops. Subsidies are intended to improve society's well-being. It is a part of the government's non-plan spending. Petroleum subsidies, fertilizer subsidies, food subsidies, interest subsidies, and so on are all major subsidies in India.
Subsidies are a government program that aims to deliver the best benefits and advantages to all farmers who receive financial assistance. The Indian government established and structured the DBT agriculture scheme on January 1, 2013, which makes transferring subsidies to farmers' beneficiaries simple and smooth.
LPG subsidy, MNREGA payment, old age pension, and other scholarships are among the subsidy categories covered by this plan, among many others. The DBT agriculture scheme has all of the necessary information and knowledge kept on the portal, allowing farmers to take advantage of government schemes and policies in a direct and precise manner.
The DBT agriculture plan has a straightforward and clear structure; money is transferred directly into the accounts of farmers who are below the poverty line. This payment will be made through the NPCI's Aadhar payment bridge. The CPSMS website is a one-stop shop for all information about the DBT agriculture strategy and plan. Tractor subsidy scheme 2023 changes the supply curve to the right and can be justified for items that benefit society as a whole.
Ø Allows for increased social efficiency. The socially efficient price, which includes the external benefit, is ultimately paid by consumers.
Ø Subsidizing public transportation encourages individuals to drive less, reducing negative externalities. Subsidies for goodwill assist influence preferences in the long run. It will motivate businesses to create more items with positive externalities.
Ø You can buy a tractor from any company for any price. It is unrestricted by the government.
Ø The federal and state governments will jointly provide you with a subsidy on tractors.
· Rashtriya Krishi Vikas Yojana (RKVY)
The initiative is part of the National Agriculture Development Programme and is a state plan scheme. This scheme provides farmers with a 100 percent subsidy amount. All agricultural mechanization receives a subsidy. The system follows varied rules depending on the state government.
·Sub-Mission on Agricultural Mechanization (SMAM)
The program was created to help the country's small and marginal farmers. There are also special centers that provide farmers across the country with advice on various agricultural tasks.
· National Food Security Mission (IFSM) (NFSM)
The major goal of this program is to boost productivity. Rather than buying new machines, it concentrates on enhancing existing ones. Because it is inevitable that machinery would have defects over time, and in such scenarios, this technique is extremely advantageous.
· NABARD (National Bank for Agriculture and Rural Development) loans in India
The NABARD scheme provides a 30% tractor subsidy for the purchase and a 100% subsidy for the purchase of other transport machinery. Farmers will be able to purchase machinery to help them progress their crops.
In addition to this, the government has launched a number of initiatives at various levels in response to demand and unforeseen circumstances. Farmers are the backbone of our country, and their state reflects the state of the country.
Subsidies are distributed in two ways. There are two types of cash subsidies: direct and indirect. The direct tractor subsidy scheme is in the form of cash and is more beneficial to farmers, whereas the indirect tractor subsidy is achieved through taxing agricultural income.
Certain documentation must also be submitted as part of the tractor subsidy apply online process. Adhar card, voter id, voter card, bank account, bank copy (statement), account details, PAN card, contact information, name and date of birth, application form, and other vital documents.
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