Maharashtra: Agri tool manufacturing units hit hard by DBT scheme

Nagpur: At least 180 small-scale agro-industrial enterprises in Maharashtra are running into losses since the introduction of the so-called Direct Benefit Transfer (DBT) scheme for farmers to buy agricultural implements. Earlier, agricultural implements used to be procured by the concerned departments from the MSMEs manufacturing the agricultural tools, which were then given to farmers on 50 percent subsidy by the government.

However, since the introduction of DBT, farmers have been allowed to buy the tools from the open market. Nandkishore Khadse, an entrepreneur manufacturing the tools in Nagpur district, said the open market buying is benefiting Chinese companies at the cost of local manufacturers. Khadse said that the DBT system is also disadvantageous to the farmers as well.

Under the DBT scheme, the farmers are supposed to purchase tools from any company available in the market at 100 percent payment. The GST bill for the subsidized item should be submitted to the Department of Agriculture. After the approval of the bill, the subsidy for various schemes is diverted to the farmers on a DBT basis. "This scheme is good for rich farmers but for the farmers living a hand-to-mouth existence, it is not possible for them to pay the entire amount at once," says manufacturer Khadse.

Khadse urged the Central government to revisit the scheme. Mohan Patil, a member of the Agriculture Implementation Manufacturing Association, said that around 200 companies manufacturing agricultural implements across the state had been running in losses.