DBT policy leaves agro-based SMEs in crisis

VAIBHAV PARWAT

Aurangabad, Sept 29:

The amount of subsidy on agricultural equipment distributed to farmers from various schemes of the Centre and state government is being credited directly to the account of the farmers. Hence the government stopped buying these items from the agro-based small and medium enterprises. As a result, SMEs across the state, including Aurangabad which produces these commodities, are facing a financial crisis. In particular, these companies are owned by young entrepreneurs.

The Direct Benefit Transfer (DBT) policy has led to the loss of self reliance and leading to bankruptcy of the entrepreneurs. Meanwhile, the farmers are also not satisfied with the distribution of cash subsidy and the oppressive conditions of the scheme have become fatal for them. The state government provides subsidies for the purchase of agri equipment, HDPE pipes, motor pumps, agricultural tools and similar items through Zilla Parishad and Krushi Kendra. The farmers in the general category used to get 50 per cent and farmers from backward communities got up to 90 to 100 per cent subsidy.

The Maharashtra Agro Industries Development Corporation Ltd (MAIDC) used to purchase these items from the agri-based SMEs. The number of such small and medium enterprises in the district is about 130. As a result the agri-based SMEs were generating good revenue and providing employment to hundreds of youths. However, from 2018-19, the government stopped the purchase from the SMEs and started depositing the amount directly in the account of the farmers. Hence the production in the agro-based industries have come to a standstill. The financial crisis from the past two years due to covid have also impacted the entrepreneurs.

SMEs need support from the government

The government has stopped the purchase of agri-goods from the SMEs for the past three years. This has crippled nearly 130 SMEs that produce agricultural equipment and other goods. These SMEs have been set up by young entrepreneurs that are from rural backgrounds. These industries need financial support of the Central and state government. Instead of purchasing substandard equipment and products from the open market, the companies can supply quality equipment to the farmers, said Massia president Narayan Pawar.