Government Subsidy on Agriculture Machinery in India: A Complete Guide for Farmers
Posted on December 10, 2025
Modern farming needs smart tools, but high machine prices often stop farmers from upgrading. This is where the government subsidy on agricultural machinery in India becomes very useful.
In this article, you will learn what this subsidy is, who can apply, which machines are covered, and how to get the benefit.
What Is the Government Subsidy on Agricultural Machinery in India?
The government subsidy on agricultural machinery in India is financial support given to farmers to help them buy modern farming tools at a lower price.
Instead of paying the full amount, farmers pay only a part. The government pays the rest.
This helps farmers:
- – Reduce farming costs
- – Use better machines
- – Increase production
- – Save labour
- – Improve income
Why does the Government give subsidies on Farm Machines?
The primary objective of this subsidy is to enhance farming across the country.
The goals are:
- – Promote modern farming
- – Reduce manual stress
- – Improve crop quality
- – Support small farmers
- – Increase food production
- – Encourage youth in farming.
Machines allow farmers to work faster.
Who Can Apply for the Agriculture Machinery Subsidy?
Most Indian farmers can apply. This includes:
- – Small farmers
- – Marginal farmers
- – Medium landowners
- – Women farmers
- – Farmer groups
- – Self-help groups
- – Farmer-Producer Organizations (FPOs)
Each state may have its own rules. But most farmers are eligible if they have valid land records.
Types of Agricultural Machinery Covered Under Subsidy
The government covers types of machines under this scheme.
Some common ones include:
- – Tractors
- – Power tillers
- – Seed drills
- – Rotavators
- – Sprayers
- – Harvesters
- – Threshers
- – Paddy transplanters
- – Drip irrigation systems
- – Solar-powered pumps
The list may differ from state to state.
How Much Subsidy Is Given on Agriculture Machinery?
The subsidy amount depends on:
- – Type of machine
- – Farmer categor
- – State policy
- – Central scheme rules
In most cases, farmers get 40% to 60% subsidy on the machine cost.
For women farmers and tribal farmers, the support can go up to 70% in some states.
Example:
If a machine costs ₹1,00,000 and subsidy is 50%, then:
- – Farmer pays ₹50,000
- – Government pays ₹50,000
This helps reduce the financial burden.
Major Government Schemes for Agriculture Machinery Subsidy
Several central and state schemes offer support. The most popular ones include:
Sub-Mission on Agricultural Mechanization (SMAM)
This is the main government scheme for farm machines.
It supports:
- – Individual farmers
- – Custom Hiring Centres
- – Rural entrepreneurs
Machines covered include:
- – Tractors
- – Harvesters
- – Tillage tools
- – Sowing equipment
Rashtriya Krishi Vikas Yojana (RKVY)
This scheme helps farmers adopt new technology.
It supports:
- – Machinery purchase
- – Innovation in farming
- – Farm infrastructure
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
This scheme focuses on irrigation tools like:
- – Drip irrigation
- – Sprinkler systems
- – Water-saving devices
NABARD Farm Machinery Loan Support
NABARD supports farmers with:
- – Easy loans
- – Low interest rates
- – Machinery finance
Many farmers use both loans and subsidies together.
State Government Agriculture Machinery Subsidies
Each state runs its own program. For example:
- – Maharashtra gives a subsidy on sprayers, rotavators, and tractors
- – Gujarat supports – drip irrigation and solar pumps.
- – Uttar Pradesh provides support for power tillers and harvesters.
- – Tamil Nadu focuses on paddy machines.
Farmers should check their state agriculture department portal for exact details.
How to Apply for a Government Subsidy on Agriculture Machinery in India?
The process is now mostly online. Here is a simple step-by-step guide:
- 1) Visit your state agriculture department website.
- 2) Register as a farmer.
- 3) Upload land documents
- 4) Select the machine you want
- 5) Apply for a subsidy
- 6) Wait for approval
- 7) Buy the machine from an approved dealer.
- 8) Submit the bill and documents.
- 9) Receive the subsidy in your bank account.
In many cases, the money is sent directly to the farmer’s bank.
Documents Required for Agriculture Machinery Subsidy
You will need:
- – Aadhaar card
- – Land Ownership Paper
- – Bank passbook
- – Passport-size photo
- – Mobile numbe
- – Caste certificate (if applicable
- – Quotation of the machine
Keep copies ready before applying.
Benefits of Government Subsidy on Agricultural Machinery
This support brings many benefits to farmers:
- – Lower machine cost
- – Better farming speed
- – Reduced labour work
- – Higher productivity
- – Better income
- – Less physical stress
- – More accurate farming
Machines also help in timely sowing and harvesting.
Machines That Give Fast Return on Investment
Some machines help farmers earn faster returns:
- – Power tiller
- – Seed drill
- – Crop sprayer
- – Paddy transplanter
- – Mini harvester
- – Drip irrigation system
These tools quickly recover their cost through better output.
Agriculture Machinery Subsidy for Small Farmers
Small farmers receive special benefits because they have limited income.
They receive:
- – Higher subsidy rate
- – Priority in selection
- – Support for small machines
- – Custom hiring support
Custom Hiring Centres allow small farmers to rent machines at a low cost.
Common Problems Faced During Subsidy Application
Some farmers face issues such as:
- – Website errors
- – Delayed approval
- – Limited machine stock
- – Lack of awareness
- – Long verification time
To avoid delay:
- – Apply early
- – Upload the correct papers.
- – Visit your local agriculture office if needed.
Tips to Get Agriculture Machinery Subsidy Easily
Follow these simple tips:
- – Keep documents ready
- – Apply during the official scheme period.
- – Choose approved dealers
- – Follow up regularly
- – Track application status online
- – Join a farmer group.
Is the Agriculture Machinery Subsidy Really Helpful?
Yes. This scheme has helped lakhs of farmers across India.
It has:
- – Improved crop production
- – Reduced farm losses
- – Increased mechanization
- – Created rural jobs
- – Improved farm income
It supports the future of Indian farming.
Final Thoughts on Government Subsidy on Agricultural Machinery in India
Government subsidies on agricultural machinery in India play a key role in helping farmers adopt modern farming techniques. It reduces cost barriers and encourages the use of better machines.
Whether you are a small farmer or a large landowner, this subsidy can help you grow more, earn more, and work smarter.
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