Farm Machinery Bank

Standard Operating Procedure: Farm Machinery Bank

Farm machinery Bank is an initiative of government in which government provides Rs.8 lakh subsidies to a community, Rs.1 lakh have to pay by the community and another 1 lakh have to take the loan from the bank. As the community cannot fulfill the amount of Rs.1 lakh, some organizations providing Rs.50000 to the community. Proper area (Need assessment) with more than 10 SHGs members with every 15 members, where farm machinery bank is established.

Machinery and implements:                                         Number                     Available

1.      Tractor                                                                  1                            yes

2.      Rotavator                                                              1                            yes

3.      Multicrop thresher                                                1                            No

4.      Pump set                                                               1                            yes                     

5.      Sprayer                                                                  2                            No

6.      Seed drill                                                               1                            No

Prices of Machine as per use basis:

•      Rotavator: Rs.1200/hr

•      Cultivator: Rs. 600/hr

•      Multi-crop Thresher: Rs. 600/hr

•      Pump set: 120-200/hr

•      Spray machine: Rs.50/day

•      Seed drill: 700/hr

 Standard Operating procedures:

·         Centre should be near to the road and spacious so that (Location name) should be maintained with shed.

·         In office the following register should be maintained

1.      Attendance Register

2.      Implements Register (passbook system for members)

3.      Rates peruse Register

4.      Implements movement register

5.      Receipt of use

6.      Records & leisure

7.      Annual balance sheet certified by CA

8.      Departments approval letter

·         Machines should be utilized as pay per use, after utilizing its should come back to farm machinery bank.

·         Area of utilization should be preferably 5 to 10 km area.

·         Utilization on the basis of seasonality and cropping pattern.

·         For transparency purpose bills should be provided to the farmer after use, one copy to SHG too.

·         Utilization of tractor other than agriculture is only when land is fallow.

·         Use of machines firstly on where the number of customers is more so that it’s easy to cultivate more land.

·         Members could advantage first and discount in prices as per the SHG decide.

• Salary of tractor driver is Rs.7000/month
• Priority is given to complete loan amount first so that the group credibility must be there in the bank, which could help in further loans.
• The personalized mobile number for the center so that easy to take care of demand
• Machine depreciation cost will be seen by the SHG members.
• Insurance of machines should be done.

For more information kindly comment....

or visit ministry of agriculture website...