Agricultural machinery plays a major role in reducing labour costs, saving time, and improving productivity for farmers in India. Machines like tractors, power tillers, seed drills, harvesters, sprayers, and drip systems make farming easier and more efficient. However, many farmers hesitate to buy machinery because of high prices. To support farmers, the government offers several subsidy schemes. Here is an easy-to-understand guide on the main subsidy options available for agricultural machinery in India.
1. Sub-Mission on Agricultural Mechanization (SMAM)
One of the biggest schemes for farm machinery is the SMAM scheme by the central government. Under this scheme, farmers can get subsidies for a wide range of equipment.
Subsidy details:
Small and marginal farmers: 40–50% subsidy
General category farmers: 30–40% subsidy
Women farmers and SC/ST farmers: Higher subsidy in many states
Machinery covered includes tractors, power tillers, rotavators, seeders, planters, sprayers, threshers, and other field equipment.
2. State Government Agriculture Department Subsidies
Every state offers its own subsidy schemes through the Agriculture Department or the local agriculture portals. These schemes may change every year depending on state budgets.
Common machines supported:
Mini tillers
Brush cutters
Pumps and sprayers
Reapers
Multi-crop threshers
Some states also offer special subsidies for tribal farmers, women farmers, or dryland areas. Application is usually done online through state portals like Rajasthan’s RajKisan, Gujarat’s Ikhedut, and Maharashtra’s Aaple Sarkar.
3. Tractor Subsidy Schemes
Tractors are one of the most demanded machines. Many states offer tractor subsidies under mechanization programs.
Typical subsidy:
25–35% for general farmers
35–50% for SC/ST, women, and small farmers
In some states, subsidy is available only for smaller HP tractors (20–40 HP) to support small and marginal farmers.
4. Implements and Attachments Subsidy
Along with tractors, farmers can also get subsidy on implements like:
Rotavators
Cultivators
MB ploughs
Mulchers
Laser land levelers
The subsidy rate is usually 40–50% depending on the state and machine type.
5. Custom Hiring Centre (CHC) Subsidy
For farmers who cannot buy machinery individually, the government promotes Custom Hiring Centres. Farmers, groups, or FPOs can set up a CHC where machines are rented to other farmers.
Subsidy benefits:
Up to 40–80% subsidy depending on type of machines
Support for tractors, harvesters, balers, planters, and other heavy equipment
This is very useful in villages where small farmers cannot afford costly machinery.
6. Drip Irrigation and Sprinkler Subsidy
Under PM Krishi Sinchai Yojana (PMKSY), farmers get:
50–55% subsidy for drip and sprinkler systems
Higher subsidy (up to 70–80%) for SC/ST, small, or hilly region farmers
These systems save water and improve crop yields.
7. Farm Machinery for Women Farmers
Special provisions are available for women farmers. Many states offer:
10–20% extra subsidy
Separate quota for applications
Lightweight tools designed for women
This helps encourage mechanization among women farmers.
