Central Government Sub-Mission on Agricultural Mechanization SMAM: 40–50% Subsidy on Machinery

9 November 2026, 11:35 AM • Harish Sharma • Category: All India Schemes

📌 Key information

News: Central Government Sub-Mission on Agricultural Mechanization SMAM: 40–50% Subsidy on Machinery
Date: 9 November 2026, 11:35 AM
Author: Harish Sharma
Category: All India Schemes
Source: See the official portal for details — the link is inside the story.

The Central Government’s Sub-Mission on Agricultural Mechanization (SMAM) is a scheme that gives farmers access to modern agricultural machinery. It was launched by the Ministry of Agriculture and Farmers Welfare in 2014-15. It is a Centrally Sponsored Scheme and now runs under the PM-Rashtriya Krishi Vikas Yojana (PM-RKVY). Its purpose is that modern machinery — tractors, harvesters and other equipment — should reach small and marginal farmers too, especially in regions where mechanization is low. Its revised operational guidelines were issued in December 2025.

Subsidy on machinery purchase

Under SMAM, a farmer gets a direct subsidy on machinery purchase, paid into the bank account through DBT. SC/ST farmers, small and marginal farmers, women farmers and farmers of North-Eastern states get a 50% subsidy; other farmers get a 40% subsidy. For Post-Harvest Technology (PHT) units, there is an additional ceiling of ₹1.25 lakh per machine.

Custom Hiring Centres and Machinery Banks

For a farmer with two acres of land, buying a tractor makes no sense — so SMAM creates Custom Hiring Centres (CHCs), from which farmers can rent tractors, harrows, rotavators, seed drills, threshers and sprayers. CHCs can be run by farmers, FPOs, cooperatives, Gram Panchayats or private entrepreneurs; financial assistance of up to 40% of the project cost is given for CHCs (projects up to ₹250 lakh). Village Level Farm Machinery Banks (FMBs) are set up at the panchayat or village level, and assistance of up to 80% of the project cost is given for them (projects up to ₹30 lakh). Hi-Tech Hubs provide advanced machinery on hire.

Training, demonstration and drones

SMAM covers not only machinery purchase but also training and demonstration — building the capacity of farmers and end users and demonstrating machines in the field. Under the guidelines, small and marginal farmers get ₹2,000 per hectare for mechanised services, including drone services, through CHCs, Self Help Groups (SHGs) and FPOs. In this way, SMAM covers the whole chain — from purchase to hiring, training and new technology.

Different from Haryana’s machinery subsidy

Note that this article gives information about the Central sub-mission SMAM — its structure, subsidy pattern and components apply across the country. Information about the current application windows in Haryana (crop-residue machines, tractor subsidy, sugarcane mission) is given in a separate post on our site — see the Haryana Krishi Yantra Anudan post, which lists the state’s latest windows and machine-wise caps. Applications under SMAM are made through the state agriculture department; see agrimachinery.nic.in for information.

Frequently Asked Questions

Q1: How much subsidy does SMAM give on machinery?
A: 50% for SC/ST, small-marginal and women farmers, 40% for others; 40% for CHCs and up to 80% for village-level machinery banks.

Q2: When was SMAM launched?
A: In 2014-15 — it is a Centrally Sponsored scheme under PM-RKVY; revised guidelines were issued in December 2025.

Q3: How do I get a machine without buying a tractor?
A: On rent from a Custom Hiring Centre or a Farm Machinery Bank — CHCs and FMBs are created for exactly this.

Q4: Where do I apply?
A: Through the state agriculture department; see information on agrimachinery.nic.in and confirm the window with the district agriculture office.