The Government should give more incentives such as low interest loans and tax sops to mechanise the agricultural sector which can boost foodgrain production, says a study.

“Provision of excise duty and VAT exemption for agricultural machinery and equipments purchased by farmers cooperatives and village level panchayats would reduce the cost of such implements auguring their acceptance among the farming community,” said an FICCI—Yes Bank report.

It said farm mechanisation should be carried on an urgent basis to increase foodgrain production and double agricultural growth from the current two per cent.

Contrary to the popular belief that the benefits of farm mechanisation can be availed of by only large farmers, the study said small and marginal farmers have been quite open to adopting equipment for activities like sowing and threshing.

The study has suggested that the Government should support joint projects with agricultural universities to develop customised technologies suitable to domestic conditions and promotion of advanced farm machinery.