Custom hiring center

Subject: Economy

Context:

In Madhya Pradesh, farmers are given subsidies by the government for setting up Custom Hiring Centers (CHCs) up to Rs.25 lakhs.

Sub Mission on Agricultural Mechanization (SMAM):

The Sub-Mission on Agricultural Mechanization (SMAM) was launched in 2014-15 by the Ministry of Agriculture and Farmers’ Welfare, GOI.
It is aimed at enhancing the reach of farm mechanization to marginal and small farmers and also to areas where power availability is low.
Components:
- Promotion and Strengthening of Agricultural Mechanization throughTraining,Testing and Demonstration
- Demonstration,Training and Distribution of Post Harvest Technology and Management (PHTM)
- Financial Assistance for Procurement of Agriculture Machinery and Equipment
- Establish Farm Machinery Banks for Custom Hiring
- Establish Hi-Tech, High Productive Equipment Hub for Custom
- Hiring
- Promotion of Farm Mechanization in Selected Villages
- Financial Assistance for Promotion of Mechanized Operations/hectare Carried out Through Custom Hiring Centres
- Promotion of Farm Machinery and Equipment in North-Eastern Region.

Custom Hiring Centre (CHC)

It is a unit comprising a set of farm machinery, implements and equipment meant for custom hiring by farmers.
The main objective of CHC is to supply farm implements to small, marginal and poor farmers at subsidized rates on hire which enables the small and marginal farmers to take up farm operation on time.
Custom hiring centers (CHCs) for farm implements were established in 100 NICRA villages.
A committee of farmers’ nominated by the gram sabha manages the custom hiring centre.
The rates for hiring the machines/ implements is decided by the Village Climate Risk Management Committee (VCRMC).
This committee also uses the revenue generated from hiring charges for repair and maintenance of the implements and remaining amount goes into the revolving fund.
Each centre was established at a capital cost of Rs 6.25 lakhs funded by the NICRA project