Custom hiring centre

Indian Economy glossary

Topic: Land Reforms, the Green Revolution and Farm Subsidies · NCERT: Beyond NCERT

Meaning

A custom hiring centre is a facility that rents out farm machinery to farmers who cannot afford to buy it. Most Indian farmers have small or marginal holdings, so owning a tractor or harvester does not pay for them. Renting gives them the benefits of mechanisation at low cost. These centres are supported under the Sub-Mission on Agricultural Mechanisation (SMAM).

Example

A 1-hectare farmer in Punjab rents a happy seeder from a nearby custom hiring centre. The machine sows wheat directly into the paddy stubble, so the farmer does not need to burn the straw.

Don't confuse with

  • Cooperative farming: here farmers pool their land for joint cultivation. At a custom hiring centre, each farmer farms their own land and only rents the machines.

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