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ActiveCentral Sector SchemeLaunched 2014-04-01Verified: 2026-09-16

Sub-Mission on Agricultural Mechanization (SMAM)

Farm machinery promotion scheme providing 40% to 50% subsidies on tractors, power tillers, rotavators, and up to 80% for Custom Hiring Centres.

Government Levelcentral Government
Administering BodyMinistry of Agriculture and Farmers Welfare
Beneficiary Sector
Farmers & Agriculture
Applicable Jurisdiction
All India

₹Benefits & Entitlement Breakdown

Financial assistance for procurement of modern agricultural machinery and equipment: 50% subsidy (up to statutory ceilings) for Small, Marginal, Women, SC, and ST farmers; 40% subsidy for General category farmers on tractors, power tillers, combine harvesters, laser land levelers, rotavators, and multi-crop threshers. Special assistance of 40% to 80% (up to ₹10 Lakh to ₹25 Lakh) for establishment of Custom Hiring Centres (CHCs) and Farm Machinery Banks (FMBs) by cooperatives, FPOs, and SHGs. Kisan Drone subsidy up to 100% (max ₹10 Lakh) for ICAR/KVKs and 40%–50% for farmers/FPOs.

📊Budget Allocation & Beneficiary Reach

Fiscal Budget Allocation

₹2,100 Crore (Union Budget allocation for Agricultural Mechanization)

Official Budget Document ↗
Verified Beneficiary Reach

15+ Lakh farm machines subsidized, 40,000+ Custom Hiring Centres established

As of: 2024-03-31PIB / Official Citation ↗

Verified Eligibility Criteria

Age Requirement:Minimum 18 years
Annual Family Income Ceiling:No gross income ceiling specified
Target Occupations:farmer, landholder, agricultural_worker, fpo_member, shg_member
Eligible Gender:all
Social Category / Reservation:all, SC, ST, Women
Specific Operational Conditions & Exclusions:

All Indian landholding farmers. Enhanced 50% subsidy rate applies to Small & Marginal farmers, Women, SC, and ST farmers. Farmers must have valid cultivable land records. Same implement subsidy cannot be availed again within 5 to 7 years.

Required Documents Checklist

  • ✓
    Aadhaar CardMandatory

    Mandatory applicant KYC identification.

  • ✓
    Land Title Deed / Record of Rights (Khatauni / Jamabandi)Mandatory

    Proof of cultivable landholding.

  • ✓
    Bank Account Passbook with IFSCMandatory

    For direct subsidy credit via DBT.

  • ✓
    Caste Certificate (for SC/ST)Optional / Supporting

    Mandatory to claim higher 50% subsidy.

  • ✓
    Machine Purchase Invoice & Serial Number PhotoMandatory

    Required post-purchase for physical verification.

How to Apply

1. Visit the unified Direct Benefit Transfer in Agriculture Mechanization portal (https://agrimachinery.nic.in). 2. Click on "Registration" under Farmer Corner and select your State, District, and enter Aadhaar number. 3. Select scheme (SMAM) and choose agricultural implement type (e.g. Tractor, Power Tiller, Laser Leveler). 4. Select approved manufacturer and local dealer from the empaneled registry. 5. Upload land ownership record, bank passbook, and caste certificate. 6. The District Agriculture Officer (DAO) reviews application and issues an online subsidy sanction order. 7. Purchase the machine from the authorized dealer and upload invoice and machine chassis/engine number photograph. 8. Physical verification conducted by agriculture field officer; subsidy is released directly via DBT to farmer bank account.

Official Government Application Portal

You will be redirected to the secure official portal: agrimachinery.nic.in

Apply on official government website

Frequently Asked Questions (Officially Sourced)

Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.

What is a Custom Hiring Centre (CHC) under SMAM?

A Custom Hiring Centre is a machinery hub established by rural entrepreneurs, FPOs, or cooperatives that rents out expensive modern machinery to small farmers at nominal rental rates.

Source: Official Scheme FAQ ↗

What is the subsidy rate for women farmers purchasing farm machinery?

Women farmers receive an enhanced financial assistance rate of 50% of the cost of the machinery, subject to specified upper limits for each implement.

Source: Official Scheme FAQ ↗

Are subsidies available for agricultural drones?

Yes, financial assistance up to 40%–50% of drone cost is provided to farmers and FPOs, and up to 100% (max ₹10 lakh) for ICAR institutes and Krishi Vigyan Kendras.

Source: Official Scheme FAQ ↗

Common Rejection Reasons & Warnings

Applicant purchased uncertified machinery from non-empaneled manufacturer; previous subsidy availed for same machine category within 5–7 years; landholding records unverified.

Editorial Verification & Change Log

DateFieldDescription / UpdateSource Citation
2026-09-16initial_verificationBaseline verification of SMAM guidelines, Custom Hiring Centre subsidy rates, and Kisan Drone assistance.Official Source ↗

Application Window & Deadlines

Open throughout the year (State-wise allocation windows)

Related Welfare Programs

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Direct income support of ₹6,000 per year in three equal installments to landholding farmer families across India.

Pradhan Mantri Matsya Sampada Yojana (PMMSY)

National flagship scheme for fisheries development providing 40% to 60% capital subsidies for aquaculture, marine fishing boats, cold storage, and fish farming infrastructure.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Comprehensive agricultural crop insurance covering yield loss from pre-sowing to post-harvest perils at ultra-low farmer premiums of 1.5% to 2%.

Official Helpline & Nodal Offices

Mechanization & Technology Division, Department of Agriculture & Farmers Welfare

Krishi Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110001

Helpline: 011-23382937 / 1800-180-1551 (Kisan Call Centre)

Jurisdiction: National (All-India)

Notice a Discrepancy?

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Verification Metadata

Last verified by Eligo researchers on 2026-09-16 against official government documentation.

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