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Government Schemes & Subsidies

Subsidy on Agriculture Equipment: SMAM and DBT Guide

Subsidies on agricultural equipment in India are administered through the Sub-Mission on Agricultural Mechanization (SMAM) and state Direct Benefit Transfer (DBT) portals. Covering up to 40% to 50% of machine costs for individual farmers and up to 80% for custom hiring centers, these grants promote power tillers, rotavators, transplanters, and harvesters.

Last reviewed: 11 November 2026

SMAM Scheme Architecture and Subsidy Slabs

The Ministry of Agriculture and Farmers Welfare implements SMAM to increase farm power availability, particularly for small and marginal landholders.

Financial assistance is structured according to beneficiary categories and equipment types, channeled directly through state DBT mechanisms.

  • Small & Marginal Farmers: Receive higher subsidy support (typically 50% of benchmark cost) on approved implements
  • Women & SC/ST Agriculturalists: Entitled to enhanced subsidy percentages and prioritized quota allocations
  • Custom Hiring Centers (CHC): Rural youth, cooperatives, and FPOs receive 40% to 80% project assistance to establish equipment rental banks
  • Eligible Implements: Tractors, power tillers, rotavators, seed drills, laser land levelers, paddy transplanters, and combine harvesters

State DBT Agriculture Portals and Application Flow

Farmers apply online through their respective state agricultural engineering or DBT portals during open seasonal application windows.

Once applications are submitted with verified land ownership records, automated lottery draws or first-come approvals issue purchase permits.

  • Portal Registration: Register on state portals (UP Agriculture DBT, MP E-Krishi Yantra, Bihar DBT, Mahadbt, etc.)
  • Permit Issuance: Upon lottery selection, the portal issues an official pre-sanction or purchase permit
  • Dealer Purchase: Procure the machine from an approved, empanelled manufacturer or authorized local dealer within the stipulated timeframe

Verification, Geo-Tagging, and Subsidy Disbursal

Following equipment purchase, block agricultural officers conduct physical verification to inspect the machine serial number, chassis plate, and invoice.

The subsidy amount is credited directly to the farmer's Aadhaar-linked bank account via Direct Benefit Transfer.

  • Required Documentation: Land record copy (7/12, Khasra), Aadhaar card, bank passbook, and tax invoice with serial number
  • Geo-Tagging: Physical inspection with GPS geo-tagged photographs of the farmer with the newly purchased machine
  • Disbursal Timeline: Subsidies are disbursed into the beneficiary account upon successful verification without intermediary delays

Official source

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Sub-Mission on Agricultural Mechanization (SMAM) ↗

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Common questions

What government scheme provides subsidies on farm implements in India?

The Sub-Mission on Agricultural Mechanization (SMAM) is the primary central scheme providing subsidies on farm equipment through state DBT portals.

How much subsidy can a small farmer get on a rotavator or power tiller?

Small, marginal, and women farmers typically qualify for 40% to 50% subsidy on the benchmark cost of approved implements.

What is required to apply for agricultural machinery subsidy?

Farmers need verified land ownership records (Khasra/7-12), Aadhaar card, bank passbook copy, and registration on the state DBT agriculture portal.

General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.

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