Most farmers in India know that modern equipment can double their productivity — but the cost of a tractor, rotavator, or seed drill keeps it out of reach. The problem is not that support does not exist — it is that most farmers never find out how to actually claim it.
Under schemes like SMAM and Krishi Yantra Yojana, the central and state governments together offer subsidies ranging from 40% to 80% on agricultural machinery. In some cases, like agriculture drones, the grant can go up to 100% or ₹10 lakhs — whichever is less. Here is everything you need to know to use these schemes in 2026.
Key Highlights at a Glance
| Detail | Information |
|---|---|
| Scheme Name | SMAM (Sub-Mission on Agricultural Mechanization) / Krishi Yantra Yojana |
| Subsidy Range | 40% to 80% on most equipment; up to 100% on agriculture drones |
| Maximum Grant (Drone) | ₹10 Lakhs or actual cost, whichever is less |
| Eligible Farmers | Small, marginal, SC/ST, women farmers; also CHC/FMB operators |
| Apply Mode | Online via agrimachinery.nic.in or state agriculture department portal |
| Funding Pattern | 60% Central + 40% State (Centrally Sponsored Component) |
| Priority Category | Women farmers, SC/ST farmers, small and marginal farmers |
What Is the Agriculture Equipment Subsidy
This is not a single government scheme. It is a combination of central and state-level programmes that together provide financial assistance to farmers for buying modern agricultural machinery at a reduced cost.
The primary central scheme is SMAM — Sub-Mission on Agricultural Mechanization — run by the Ministry of Agriculture and Farmers Welfare. Several states also run their own parallel schemes, such as Krishi Yantra Yojana in Madhya Pradesh and similar programmes in Maharashtra, Rajasthan, Uttar Pradesh, and Punjab.
The goal is straightforward: reduce the cost burden of mechanization so that even small and marginal farmers can access equipment that improves yield, reduces labour dependency, and cuts post-harvest losses.
Who Can Apply
- Small and marginal farmers (landholding up to 2 hectares in most states)
- SC/ST category farmers — eligible for an additional 20% subsidy in many states
- Women farmers — given priority in most state-level implementations
- General category farmers — eligible for approximately 40% subsidy under SMAM
- Custom Hiring Centre (CHC) and Farm Machinery Bank (FMB) operators — eligible for 80% to 100% subsidy in many cases
- Farmer Producer Organizations (FPOs) and cooperatives — eligible under specific components
Eligibility criteria can vary by state and by the specific equipment being purchased. Always verify with your district agriculture office before applying.
Benefits You Can Expect
Under SMAM, general category farmers typically receive around 40% subsidy on tractors and farm machinery. SC/ST and women farmers can receive up to 50% or more, depending on the state.
For Custom Hiring Centres and Farm Machinery Banks, the subsidy can go up to 80% of the equipment cost. This is particularly useful for farmer groups or cooperatives who want to share machinery across multiple households.
The most significant recent update is for agriculture drones. The government now provides up to 100% of the cost or ₹10 lakhs as a grant — whichever is lower — for drone procurement under the revised SMAM guidelines. This is a major opportunity for progressive farmers and FPOs in 2026.
Equipment covered includes tractors, rotavators, seed drills, disc harrows, power weeders, paddy transplanters, multi-crop threshers, and more.
Documents Required
- Aadhaar card (mandatory for DBT-linked subsidy)
- Land ownership documents or Khasra/Khatauni
- Bank account details linked to Aadhaar
- Caste certificate (for SC/ST applicants)
- Passport-size photograph
- Mobile number registered with Aadhaar
- Quotation or invoice from an empanelled equipment dealer (in many cases)
How to Apply — Step by Step
The primary online portal for SMAM applications is agrimachinery.nic.in. Here is the process most states follow:
Step 1 — Visit agrimachinery.nic.in and register as a farmer using your Aadhaar number and mobile number. Some states redirect to their own state agriculture portal, so check your state’s agriculture department website as well.
Step 2 — Log in and select the equipment you want to apply for. Choose from the approved list of implements. Make sure the equipment is listed under your state’s approved category for the current financial year.
Step 3 — Fill in your land details, bank account information, and upload the required documents. Submit the application and note your application reference number.
Step 4 — A lottery or waitlist system is used in most states when applications exceed available targets. If selected, you will receive an SMS or notification to proceed with purchase from an empanelled dealer.
Step 5 — Purchase the equipment from the approved dealer. The subsidy amount is transferred directly to your bank account via DBT, or in some cases deducted at the point of sale.
For offline applications, visit your nearest Krishi Vigyan Kendra (KVK) or district agriculture office. They can guide you through the process and help with document submission.
Reality Check — What Actually Happens on the Ground
The scheme exists and the subsidies are real — but the process is not always smooth. In many states, the number of applications far exceeds the annual targets set by the government. This means a large number of eligible farmers end up on a waitlist and may not receive the subsidy in the same financial year they applied.
Common reasons for rejection or delay include Aadhaar-bank account mismatch, land records not updated in government databases, applying for equipment not listed under your state’s approved category, and purchasing from a dealer who is not empanelled under the scheme.
Bank dependency is also a factor when equipment loans are involved alongside the subsidy. Approval timelines vary significantly across districts and states. Approaching your district agriculture officer early in the financial year — ideally between April and June — gives you the best chance of being included in that year’s target allocation.
A Practical Example
For example, consider a small farmer in Madhya Pradesh with 1.5 hectares of land. Under Krishi Yantra Yojana, he applies for a rotavator priced at approximately ₹80,000. As a general category small farmer, he may be eligible for around 40–50% subsidy, meaning his out-of-pocket cost could come down to approximately ₹40,000–₹48,000 in many cases. The exact amount depends on the state’s approved cost norms for that equipment and the available budget for that financial year.
In another case, an FPO in Punjab setting up a Custom Hiring Centre could receive up to 80% subsidy on a set of implements, significantly reducing the capital investment needed to serve dozens of member farmers.
What You Should Do Next
If you are a farmer or work with farmers, the single most important step right now is to visit agrimachinery.nic.in and check whether your state has active targets open for the current financial year. Targets are released at the start of the financial year and fill up fast. Do not wait until the second half of the year. Gather your Aadhaar, land records, and bank details, and register on the portal today. If you find the online process difficult, your nearest KVK or district agriculture office is there to help — and using that support is not a weakness, it is just smart farming.