Sub-Mission on Agricultural Mechanization Scheme (SMAM): Benefits & Subsidy Details

Introduction of Sub-Mission on Agricultural Mechanization Scheme (SMAM): A Brief Insight

A small farmer with two acres of land may not be able to afford a tractor. Even hiring one during the sowing season can be difficult because many farmers need the same machine at that time. Any delay in sowing can affect the harvest. The Sub-Mission on Agricultural Mechanization Scheme (SMAM) addresses this problem by helping farmers purchase agricultural machines or hire them from nearby centres at affordable rates.

The Government of India launched SMAM in 2014-15. The scheme operates as part of the Rashtriya Krishi Vikas Yojana, with the Centre and State Governments sharing its financial cost.

The Department of Agriculture and Farmers Welfare, under the Ministry of Agriculture and Farmers Welfare, implements the scheme. State Governments select eligible beneficiaries, while their respective application portals remain connected to the central SMAM portal.

SMAM aims to make modern agricultural machinery accessible to farmers, particularly those who cannot afford to purchase expensive equipment. It also promotes Custom Hiring Centres, organises machinery demonstrations and training programmes, and supports the testing and certification of agricultural machines.

Eligible small and marginal farmers, SC and ST farmers, women farmers, and farmers from the North-Eastern States and Himalayan regions can receive a 50% subsidy on approved machinery. Other farmers can receive 40% assistance, subject to the maximum subsidy limit fixed for each machine.

The scheme also provides higher assistance to certain special categories. Forest Rights Act patta holders can receive 90% assistance, while farmers in North-Eastern States can receive 100% assistance for a machine costing up to ₹1.25 lakh. It also reserves 30% of its funds for women farmers.

Farmer groups and eligible entrepreneurs can establish a Custom Hiring Centre with 40% assistance on the project cost, subject to a maximum project cost of ₹250 lakh. Similarly, eligible applicants can establish a Farm Machinery Bank with 80% assistance on a project costing up to ₹30 lakh.

SMAM also supports the use of Kisan Drones in agriculture. Eligible farmers can receive up to ₹5 lakh at the 50% rate and up to ₹4 lakh at the 40% rate, subject to the applicable limits. Small and marginal farmers can also receive ₹2,000 per hectare for hiring drone services, covering a maximum of 2 hectares per year.

Individual farmers, Self Help Groups, Farmer Producer Organisations, Panchayats, cooperative societies and rural entrepreneurs can participate in the scheme, subject to the applicable eligibility conditions. The machinery must come from an empanelled manufacturer and carry a valid test report.

Farmers can apply online through their respective State agriculture portals, which are connected to the Central SMAM Portal. If applications exceed the available target, the State selects beneficiaries through an online lottery. After purchasing the approved machine, the beneficiary must complete the required verification. The department then transfers the eligible subsidy through Direct Benefit Transfer (DBT).

For assistance, farmers can contact their District Agriculture Officer or call the Department of Agriculture and Farmers Welfare at 011-23385093. Since its launch, the scheme has supported the distribution of 21.61 lakh machines to individual farmers.

Farmers looking for annual income support can also explore the PM Kisan Samman Nidhi Yojana. Those who want to protect their crops against farming risks can read about the PM Fasal Bima Yojana. Farmers who need credit for agricultural expenses can explore the Kisan Credit Card Scheme, while women’s groups interested in drone-based agricultural services can learn about the NAMO Drone Didi Scheme.

Farmers, farmer groups, rural entrepreneurs and readers looking for more programmes related to agriculture, farmer welfare and rural development can explore our Central Government Welfare Schemes List page.

Benefits Provided to Eligible Beneficiaries

Buying a tractor, harvester or other agricultural machine can be expensive for small farmers. Arranging machinery at the right time can also be difficult, especially during peak farming seasons. The Sub-Mission on Agricultural Mechanization Scheme (SMAM), implemented by the Department of Agriculture and Farmers Welfare, addresses these challenges through purchase subsidies and financial assistance for setting up machinery hiring centres.

Since 2014-15, the scheme has supported the distribution of 21.61 lakh machines to individual farmers. It also helps farmer groups and institutions establish centres where farmers can hire machinery at affordable rates.

Subsidy on a Machine for Your Own Use

• 50% of the approved cost for small and marginal farmers, SC and ST farmers, women farmers, and farmers from North-Eastern States and Himalayan regions.
• 40% of the approved cost for other farmers.
• Each machine has a separate maximum subsidy limit, which includes GST.
• The subsidy is transferred to the beneficiary through Direct Benefit Transfer (DBT).
• Farmers can choose eligible machines from empanelled manufacturers and negotiate the purchase price.

What the Caps Look Like for Common Machines

The subsidy amount depends on the machine category, its specifications and the applicable ceiling. Some examples of the maximum limits are given below:

• Tractor, 2WD, up to 20 PTO HP: up to ₹2 lakh at 50% and ₹1.6 lakh at 40%.
• Tractor, 4WD, above 20 and up to 40 PTO HP: up to ₹3.6 lakh at 50% and ₹2.88 lakh at 40%.
• Power tiller, above 11 BHP: up to ₹1.2 lakh at 50% and ₹1 lakh at 40%.
• Rotavator, 6 feet: up to ₹60,000 at 50% and ₹48,000 at 40%.
• Laser land leveller, 8 feet: up to ₹1.45 lakh at 50% and ₹1.16 lakh at 40%.
• Kisan Drone: up to ₹5 lakh at 50% and ₹4 lakh at 40%.
• The approved list covers hundreds of machines, including sprayers and rice mills. Farmers should check the applicable ceiling on their State’s agriculture portal.

Worked Examples

The following examples explain how the subsidy ceiling affects the final amount:

• If a farmer in the 50% subsidy category purchases a 20 HP tractor for ₹5.5 lakh, the calculated subsidy would be ₹2.75 lakh. However, the maximum limit is ₹2 lakh, so the farmer receives ₹2 lakh and pays the remaining ₹3.5 lakh.
• If another farmer purchases the same tractor under the 40% category, the calculated subsidy would be ₹2.2 lakh. The applicable ceiling limits the subsidy to ₹1.6 lakh.
• A farmer in the 50% category purchasing a power tiller worth ₹1.6 lakh can receive ₹80,000, as this amount falls within the applicable ceiling.
• A woman farmer purchasing a Kisan Drone worth ₹7 lakh may receive ₹3.5 lakh. If the drone costs ₹12 lakh, the subsidy is limited to ₹5 lakh.
• These examples are illustrative. The final subsidy depends on the approved purchase price, applicable machine ceiling and rates notified by the State.

Special Rates for Special Groups

• Forest Rights Act patta holders: 90% of the approved machine cost.
• Farmers in North-Eastern States: 100% of the cost for a machine priced up to ₹1.25 lakh.
• Farmers in Himalayan regions, including Uttarakhand, receive the 50% subsidy rate. The Centre also bears 90% of the State’s share of funds.
• The scheme reserves 30% of its funds for women farmers.

Custom Hiring Centres

Custom Hiring Centres (CHCs) allow farmers to rent agricultural machinery instead of purchasing expensive equipment. The scheme provides financial assistance to eligible individuals and organisations for establishing these centres.

• 40% of the project cost, subject to a maximum project cost of ₹250 lakh. For example, a project costing ₹100 lakh may receive assistance of up to ₹40 lakh, subject to the applicable machine-wise limits.
• Financial support covers machinery used for farming, agricultural processing and value addition. Farmers can hire these machines at reasonable rates.
• An agriculture graduate setting up a Kisan Drone Centre can receive 50% of the basic cost of the drone and its attachments, or ₹5 lakh, whichever is lower.
• 10% of the allocated funds are earmarked for Self Help Groups under DAY-NRLM.
• The assistance generally follows a credit-linked, back-ended subsidy arrangement involving a bank loan. The subsidy is adjusted as per the prescribed procedure after the required verification.

Farm Machinery Banks

Farm Machinery Banks help villages access agricultural equipment through a shared facility. They are particularly useful for small and marginal farmers who cannot afford costly machines individually.

• 80% of the project cost, subject to a maximum project cost of ₹30 lakh. This can provide assistance of up to ₹24 lakh.
• 90% assistance, amounting to up to ₹27 lakh, for eligible Self Help Groups or Farmer Producer Organisations of Forest Rights Act patta holders.
• 95% assistance in North-Eastern States, amounting to up to ₹28.5 lakh.
• Eligible groups, Panchayats and cooperative societies can establish these banks to make machinery available to farmers in their areas.
• At least 25% of the funds are earmarked for Farm Machinery Banks undertaking processing and value-addition activities through women’s Self Help Groups.

Help for Hiring Services and Model Villages

• Small and marginal farmers in low-mechanisation areas can receive ₹2,000 per hectare for hiring drone services from a Custom Hiring Centre or a women’s Self Help Group. The assistance covers a maximum of 2 hectares per year, amounting to up to ₹4,000.
• States can develop model villages for farm mechanisation by providing crop-specific machinery. Small and marginal farmers in these villages can use the equipment at nominal rental rates.

Demonstrations, Training and Testing

SMAM also supports farmers through practical demonstrations, skill development and machinery testing. These activities help farmers understand how to select, operate and maintain agricultural equipment.

• Demonstrations of modern agricultural machinery and Kisan Drones in farmers’ fields, with assistance of ₹6,000 per hectare towards the host institution’s demonstration costs.
• Training at Farm Machinery Training and Testing Institutes (FMTTIs), including guidance on machine selection, operation, maintenance and crop-specific machinery packages. Many courses are available to farmers without a training fee.
• Skill development courses for 12 job roles, including tractor operator, harvesting machine operator and Custom Hiring Service Provider.
• Testing and certification of agricultural machinery at approved centres to check whether equipment meets the prescribed standards.
• Financial support for grassroots innovators developing new agricultural machines, covering up to 90% of the eligible project cost.

What the Scheme Has Achieved

The scheme has expanded access to agricultural machinery and strengthened shared hiring facilities across the country. The reported achievements from 2014-15 to 2025-26 include:

• Central assistance of ₹9,404.47 crore.
• 21.61 lakh machines provided to individual farmers.
• 27,554 Custom Hiring Centres established.
• 646 Hi-Tech Hubs and 25,608 Farm Machinery Banks established.
• The number of individual beneficiaries increased from 2.07 lakh in 2020-21 to 2.32 lakh in 2024-25.

Good to Know

• Farmers can claim assistance only for eligible machinery that meets the prescribed testing requirements and comes from an empanelled manufacturer.
• The scheme discourages individual purchases of expensive machinery, such as tractors above 40 HP and combine harvesters. Farmers can access such equipment through Custom Hiring Centres and Farm Machinery Banks.
• If applications exceed the available target, the State selects beneficiaries through an online lottery rather than a first-come, first-served process.
• Farmers should contact their District Agriculture Officer to confirm the current subsidy rates, approved machinery list, application dates and any additional subsidy offered by the State.

Eligibility Conditions Required to be Fulfilled

The Sub-Mission on Agricultural Mechanization Scheme (SMAM) supports individual farmers, rural entrepreneurs and eligible groups that want to purchase agricultural machinery or establish shared machinery facilities. The scheme offers different subsidy rates depending on the applicant’s category, location and type of project. The State Agriculture Department selects beneficiaries through a transparent process. Check the conditions below to understand which category you belong to and what assistance you may receive.

Who Can Apply

• An individual farmer who wants to purchase agricultural machinery or implements.
• A rural entrepreneur, including a rural youth or farmer, who wants to establish a Custom Hiring Centre.
• A Self Help Group (SHG) under DAY-NRLM or its Cluster Level Federation.
• A Farmer Producer Organization (FPO).
• A Panchayat.
• A Primary Agricultural Cooperative Society or another eligible farmers’ cooperative society.
• An agriculture graduate who wants to establish a Kisan Drone Custom Hiring Centre.

Eligibility for an Individual Farmer

• Farmers belonging to the higher subsidy category can receive 50% of the machine’s cost.
• Other farmers can receive 40% of the machine’s cost.
• The subsidy remains subject to the prescribed machine-wise ceiling and includes GST.
• The State gives priority to areas where the level of agricultural mechanisation is low.
• Farmers can select machinery from the list of empanelled manufacturers and negotiate the purchase price.

Who Gets the Higher Subsidy of 50%

• Small and marginal farmers.
• Farmers belonging to the Scheduled Castes (SC) and Scheduled Tribes (ST).
• Women farmers. The scheme earmarks 30% of the funds for women farmers.
• Farmers from North-Eastern States.
• Farmers from Himalayan regions, including hill States such as Uttarakhand and Himachal Pradesh.

Special Eligibility Groups

• Forest Rights Act patta holders can receive assistance covering 90% of the machine’s cost. The Ministry of Tribal Affairs provides the beneficiary list to the State.
• In North-Eastern States, farmers can receive 100% assistance for a machine costing up to ₹1.25 lakh.
• Small and marginal farmers in areas with low mechanisation can receive ₹2,000 per hectare for hiring drones, covering up to 2 hectares per year.

Eligibility for a Custom Hiring Centre

• The scheme provides assistance equal to 40% of the project cost, subject to the prescribed maximum project cost of ₹250 lakh.
• The centre must provide machinery suited to the region’s crops and farming needs, including equipment for cultivation, processing and value addition.
• The beneficiary must complete the required training at a Farm Machinery Training and Testing Institute or another reputed institution.
• Projects costing more than ₹50 lakh require a Detailed Project Report (DPR).
• Most centres follow the credit-linked back-ended subsidy system through a bank loan. The State may exempt projects costing up to ₹10 lakh from the credit-linked requirement, but cash payments are not allowed under this arrangement.
• The scheme reserves 10% of the funds for Custom Hiring Centres established by Self Help Groups under DAY-NRLM.

Eligibility for a Kisan Drone Centre

• An agriculture graduate can receive assistance equal to 50% of the drone’s basic cost, including attachments, or ₹5 lakh, whichever is lower.
• The beneficiary must have passed the Class 10 examination or an equivalent examination from a recognised board.
• The centre must have a trained drone pilot to operate the drone.

Eligibility for a Farm Machinery Bank

• The scheme provides assistance equal to 80% of the project cost, subject to a maximum project cost of ₹30 lakh.
• A Self Help Group or Farmer Producer Organization consisting of Forest Rights Act patta holders can receive 90% assistance.
• In North-Eastern States, the subsidy rate is 95%, subject to a maximum assistance of ₹28.5 lakh per project.
• A Farm Machinery Bank can include a maximum of one tractor.
• The bank must operate in a village with a low level of agricultural mechanisation. Villages in Aspirational Districts receive preference.
• At least 25% of the funds allocated for Farm Machinery Banks are reserved for processing and value-addition activities run by women’s Self Help Groups under DAY-NRLM.

Conditions for the Machine

• The machine must come from a manufacturer empanelled by the State.
• It must have a valid test report from a Farm Machinery Training and Testing Institute or another testing centre approved by the Department.
• Machinery costing ₹1 lakh or more must have geo-referenced details. Self-propelled machines must also have a telematics kit.
• Every machine must carry a unique identification code on its body.
• The State may require a Soil Health Card. If the farmer does not have one, the State may arrange soil testing as per its procedure.

How the Beneficiaries Are Picked

• The State and district nodal agencies select beneficiaries through a transparent process.
• If applications exceed the available target, the State conducts an online lottery instead of following a first-come, first-served system.
• Small agricultural machines costing up to ₹10,000 may be distributed on the spot during fairs and exhibitions.

Who Is Not Eligible

• Applicants seeking machinery that no empanelled manufacturer supplies or that does not have a valid test report.
• Farmers seeking individual subsidies for expensive machinery such as tractors above 40 HP, combine harvesters or sugarcane harvesters, where the scheme promotes these machines through Custom Hiring Centres and Farm Machinery Banks. Individual ownership is limited to a small share of the budget, up to 25%.
• Applicants who make cash payments for projects that the State has exempted from the credit-linked requirement.
• Projects that do not match the region’s crop requirements or propose more than one tractor in a Farm Machinery Bank.
• Applicants who do not get selected through the lottery when the number of applications exceeds the available target.

Check With Your State

• Contact your District Agriculture Officer to find out which agricultural machines are empanelled in your State for the current year.
• Confirm the application dates and the available beneficiary targets for your district.
• Ask whether your State provides any additional financial assistance over and above the central subsidy.

Documents Required to be Attached

The Sub-Mission on Agricultural Mechanization Scheme (SMAM), implemented by the Department of Agriculture and Farmers Welfare, Government of India, provides financial assistance to farmers and eligible groups for purchasing agricultural machinery. It also supports the establishment of Custom Hiring Centres and Farm Machinery Banks.

Each State operates its own application portal, which connects with the central scheme portal. Therefore, the exact document requirements may differ from one State to another. The scheme’s operational guidelines do not prescribe one common document list for every applicant. The following documents are based on the scheme’s eligibility conditions and different assistance components. Check your State’s SMAM portal or contact the Agriculture Department before submitting your application.

Identity and Residence Papers of a Farmer

• Aadhaar Card of the farmer, linked with the registered mobile number.
• Active mobile number and email ID of the applicant.
• Recent passport-size photograph of the farmer.
• Proof of residence in the State, such as a permanent residence certificate, if required.

Land Papers

• Land records in the farmer’s name, such as Khatauni, Khasra or Record of Rights.
• Details of the landholding area to establish whether the applicant falls under the small, marginal or other farmer category.
• Details of the crops cultivated by the farmer to help identify suitable agricultural machinery.

Papers for the Higher Subsidy of 50%

• Caste certificate for an SC or ST farmer.
• Land records showing that the applicant belongs to the small or marginal farmer category.
• Documents confirming the applicant’s status as a woman farmer, such as Aadhaar or relevant land records, as accepted by the State portal.
• Residence certificate to establish that the farmer belongs to a North-Eastern State or Himalayan region.

Papers for Forest Rights Act Patta Holders

• Copy of the farmer’s Forest Rights Act patta.
• Proof that the farmer’s name appears in the beneficiary list provided by the Ministry of Tribal Affairs to the State.

Bank Details

• Name of the account holder, which should match the farmer’s name.
• Bank account number and IFSC code of the branch.
• Copy of the first page of the bank passbook or a cancelled cheque.
• Bank account details linked with Aadhaar, wherever required for receiving the subsidy through Direct Benefit Transfer (DBT).

Papers of the Machine

• Quotation or proforma invoice of the proposed machine from an empanelled dealer.
• Name of the manufacturer, machine model and purchase price.
• Test report issued by a Farm Machinery Training and Testing Institute or another testing centre approved by the Department.
• Technical details of the machine, including its horsepower, type and size.
• Name of the dealer and proof of the dealer’s empanelment.

Soil Health Card

• Soil Health Card of the farmer, if required by the State. If the farmer does not have one, the State may arrange soil sampling and testing as per its procedure.

Papers for a Custom Hiring Centre

• Details of the entrepreneur, group or society proposing to establish the centre.
• Project report containing the proposed machinery list and estimated cost.
• Detailed Project Report (DPR) for projects costing more than ₹50 lakh.
• Proof of training received from a Farm Machinery Training and Testing Institute or another reputed institution, as training is a requirement for a Custom Hiring Centre.
• Details of the service area and crops that the centre will cover, including the number of small and marginal farmers in the surrounding area.
• Site photographs and geo-referenced location details of the proposed centre.

Papers for a Farm Machinery Bank

• Registration documents of the Self Help Group (SHG) under DAY-NRLM, Cluster Level Federation, Farmer Producer Organization (FPO), Panchayat or Cooperative Society.
• List of the group’s members, along with their Aadhaar details, wherever required.
• Project report containing the proposed machinery list. The project allows only one tractor.
• Details of the village, including its agricultural activities, crops and level of mechanisation.
• Details of the proposed processing and value-addition activities, if applicable.

Papers for a Kisan Drone Centre

• Mark sheet of the Class 10 examination or an equivalent qualification from a recognised board.
• Degree certificate of an agriculture graduate, where the applicant seeks assistance available to agriculture graduates.
• Certificate of the trained drone pilot who will operate the drone.
• Details of the drone and its attachments, along with their prices.

Loan Papers for a Credit Linked Project

• Term loan application submitted to the bank, along with the project report.
• Loan sanction letter issued by the bank.
• Bank’s claim form for the advance subsidy.
• Documents showing the margin money contributed by the beneficiary.

Papers After You Buy the Machine

• Purchase invoice of the machine and proof of payment through the bank. Cash payment is not allowed for projects that follow the non-credit-linked route.
• Photographs of the machine displaying its unique identification code, as required by the portal.
• Geo-referenced location of the machine, wherever required for machinery costing ₹1 lakh or more.
• Details of the telematics kit fitted to a tractor, reaper or transplanter costing ₹1 lakh or more, wherever applicable.
• Inspection report prepared after the authorised officer physically verifies the machine.

How Beneficiaries Can Apply to Avail the Benefit of the Scheme

Farmers can apply for the Sub-Mission on Agricultural Mechanization Scheme (SMAM) through the agriculture portal of their respective State. Each State manages its own application process, while the Central SMAM portal provides information about the scheme, approved manufacturers and eligible agricultural machines.

If you want to purchase a machine for your farm, you need to apply as an individual farmer. If you want to establish a Custom Hiring Centre or Farm Machinery Bank, you can apply through an eligible organisation or group. Such projects generally require a bank loan and follow a separate approval process.

Follow the steps below to understand how you can apply and receive the benefit.

Before You Start

Step 1: First, check which subsidy category you belong to. Small and marginal farmers, SC and ST farmers, women farmers, and farmers from the North-Eastern States and Himalayan regions are eligible for a 50% subsidy. Other farmers receive a 40% subsidy.

Step 2: Decide which agricultural machine you need for your farm. It could be a power tiller, rotavator, seed drill, Kisan Drone or another machine covered under the scheme.

Step 3: Check the SMAM operational guidelines. Open Annexure-I to find the maximum subsidy available for your selected machine. This will help you estimate how much financial assistance you can receive.

Step 4: Read the Press Information Bureau’s backgrounder on SMAM to understand the scheme’s main features and the support it provides.

Step 5: Contact your District Agriculture Officer and ask for the name of your State’s application portal. Also, confirm which machines are approved, when applications will open and how many beneficiaries the State will select.

Step 6: Keep your Aadhaar card, land records, bank passbook, category certificate (if applicable) and recent photograph ready. You may need to upload these documents while applying.

Step 7: Check whether you have a valid Soil Health Card. The State may ask for it during the application or verification process. If you do not have one, the concerned department may arrange soil testing as required.

Apply Online as a Farmer for a Machine

If you want to purchase agricultural machinery for your own farm, follow these steps:

Step 1: Open the agriculture portal of your State. This is the website through which farmers in your State submit their SMAM applications.

Step 2: Register yourself as a farmer using your Aadhaar number and mobile number. After registration, log in to your account.

Step 3: Open the machinery subsidy section and select the machine you want to purchase. Choose it from the list of machines offered by empanelled manufacturers.

Step 4: Enter your personal information, land details and bank account information in the application form. Check each entry before moving ahead.

Step 5: Select the applicable subsidy category. If you belong to the 50% subsidy group, provide the required details and upload the certificate or other proof requested by the portal.

Step 6: Upload clear copies of your land records, Aadhaar card, bank details and other documents mentioned in the application form.

Step 7: Review the complete application and submit it before the last date announced by your State. Save your application or registration number so that you can check its status later.

Step 8: Wait for the selection result. If the number of applications is higher than the available target, the State selects beneficiaries through an online lottery. Selection does not depend on who applies first.

After You Are Selected

Submitting an application does not mean that you can purchase any machine immediately. First, wait for the State’s approval. Once selected, follow the instructions given below:

Step 1: Visit an empanelled dealer and check the machines available from manufacturers approved by your State.

Step 2: Discuss the machine’s price with the dealer. You can negotiate the purchase price instead of accepting the first quoted amount.

Step 3: Purchase the approved machine and collect its original invoice. Make the payment through the banking channel if your State requires it.

Step 4: Check that the machine carries its prescribed unique identification code. For applicable machines costing ₹1 lakh or more, including tractors, reapers and transplanters, check the required telematics kit as well.

Step 5: Upload the purchase invoice and photographs of the machine on the State portal. Provide its location details if the portal asks for them.

Step 6: Wait for the department’s verification. An authorised officer may visit your location to inspect the machine and confirm that you purchased the approved equipment.

Step 7: After successful verification, the department processes the subsidy through Direct Benefit Transfer (DBT). Check your registered bank account for the credited amount.

Apply at a Fair or an Exhibition for a Small Machine

Some States may distribute small agricultural machines costing up to ₹10,000 through agricultural fairs and exhibitions. This facility allows eligible farmers to apply and complete the process at the event itself.

Step 1: Find out when your State’s Agriculture Department is organising an agricultural fair or exhibition. Ask whether the event includes the distribution of small machines under SMAM.

Step 2: Carry your Aadhaar card, land records and bank account details. Keep any other document mentioned in the event’s instructions ready.

Step 3: Visit the stall of an empanelled manufacturer and select an eligible small agricultural machine.

Step 4: Complete the online application with the help of the officials or staff available at the event. Submit the form and wait for approval.

Step 5: After approval, purchase the machine and allow the officials to verify it at the fair or exhibition.

Step 6: Follow the instructions given by the State officials to complete the subsidy settlement. The State may process the assistance at the event itself, wherever this facility is available.

Apply for a Custom Hiring Centre or a Farm Machinery Bank

Farmers, groups and eligible organisations can establish a Custom Hiring Centre or Farm Machinery Bank to make agricultural machines available for rent. Unlike an individual machine purchase, this process involves preparing a project and arranging bank finance.

Step 1: Decide who will establish and operate the centre. Eligible applicants may include rural entrepreneurs, Self Help Groups, Farmer Producer Organisations, Panchayats and cooperative societies.

Step 2: Complete the required machinery-related training at a Farm Machinery Training and Testing Institute (FMTTI) or another reputed institute. The scheme requires training for these projects.

Step 3: Prepare a project report explaining which machines you want to purchase, how much the project will cost and how farmers will use the facility. If the project cost exceeds ₹50 lakh, prepare a Detailed Project Report (DPR).

Step 4: Submit the project report to a bank and apply for a term loan. The bank will examine the project and its financial requirements.

Step 5: The bank checks the proposal and prepares the required project profile and subsidy claim. It then forwards the proposal for approval through the prescribed process.

Step 6: The State Level Project Sanctioning Committee examines the proposal. A bank representative is also part of the committee. The project must receive the required approval before the bank proceeds with the loan.

Step 7: After approval, the State releases the first instalment of the subsidy to the bank. The bank keeps this amount in a separate account linked to the project.

Step 8: Purchase the approved agricultural machines according to the sanctioned project. Inform the bank after completing the purchase.

Step 9: The concerned committee and bank official inspect the purchased machines to confirm that you have installed the equipment mentioned in the project.

Step 10: After successful inspection, the State releases the remaining subsidy to the bank according to the applicable procedure.

Step 11: Repay the bank loan as per the agreed schedule. The bank adjusts the subsidy against the loan at the prescribed stage after completing the required conditions. The subsidy amount does not carry interest.

If You Want a Kisan Drone Centre

Agriculture graduates can also establish a Kisan Drone Centre under SMAM and provide drone-based services to farmers. Follow these steps before applying:

Step 1: Check the eligibility conditions. The applicant must be an agriculture graduate and should have passed at least the 10th examination. The eligible agriculture graduate can receive 50% of the basic cost of the drone and its attachments, subject to a maximum of ₹5 lakh.

Step 2: Arrange a trained drone pilot who can operate the drone and provide the required services safely.

Step 3: Apply for the Kisan Drone Centre through your State’s prescribed process. The application generally follows the procedure applicable to a Custom Hiring Centre.

Keep Your Machine in Good Order

Receiving a subsidy also brings certain responsibilities. After purchasing the machine, follow these basic instructions:

Step 1: Keep the original purchase bill, payment receipt and all other machine-related documents safely. You may need them during inspection or future verification.

Step 2: Use the machine for the agricultural purpose for which you received the subsidy. Maintain it properly and follow the manufacturer’s operating instructions.

Step 3: Cooperate with department officials if they visit your farm for inspection. Show them the machine, its unique identification code and the purchase documents whenever required.

If You Need Help

If you face any difficulty while applying or checking your subsidy status, contact the concerned agriculture office or use the official scheme portals.

Step 1: Contact your District Agriculture Officer or Block Agriculture Officer. They can guide you about the application process, approved machines, subsidy rates and selection schedule in your area.

Step 2: Visit the official website of the Department of Agriculture and Farmers Welfare to check the latest scheme guidelines, notifications and government orders.

Step 3: Open the Central SMAM portal to access information about empanelled manufacturers and approved agricultural machinery.

Important: Do not pay any agent or middleman who promises to arrange a subsidy or guarantee your selection. The State follows its prescribed selection process, and individual farmer subsidies are transferred directly to the beneficiary’s bank account through DBT. Before applying, confirm the current subsidy rates, application dates and approved machine list with your District Agriculture Officer.

Sub-Mission on Agricultural Mechanization Scheme and NAMO Drone Didi Scheme: Which One Is for You?

Both the Sub-Mission on Agricultural Mechanization Scheme (SMAM) and the NAMO Drone Didi Scheme promote the use of drones in agriculture. However, their objectives and target beneficiaries are different. SMAM supports farmers with various types of agricultural machinery, while the NAMO Drone Didi Scheme focuses on helping women’s Self Help Groups provide drone-based services to farmers. The two programmes also complement each other in certain areas, as explained below.

If you are an individual farmer looking for a subsidy to purchase agricultural machinery, the Sub-Mission on Agricultural Mechanization Scheme (SMAM) is the relevant programme to explore. If you are part of an eligible women’s Self Help Group and want to operate a drone-based agricultural service, check the benefits available under the NAMO Drone Didi Scheme.

Important Links Available of the Scheme

• SMAM Official Portal: Apply for Agricultural Machinery Subsidy and Check Approved Manufacturers
• SMAM Operational Guidelines 2026: Subsidy Rates and Machinery-Wise Assistance
• SMAM Backgrounder: Objectives, Benefits and Achievements of the Scheme
• Department of Agriculture and Farmers Welfare: Official Website
• Rashtriya Krishi Vikas Yojana: Scheme Introduction
• SMAM: Ministry of Agriculture and Farmers Welfare Press Release
• Department of Agriculture and Farmers Welfare: Official Contact Directory
• Ministry of Agriculture and Farmers Welfare: Contact Details

Contact Details in Case of Help Needed

• Division: Mechanization and Technology Division, Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Krishi Bhawan, Dr. Rajendra Prasad Road, New Delhi – 110001
• Phone: 011-23385093
• Email of the Secretary: secy-agri@gov.in
• State Level: The State Agriculture Department or the Agro Industries Corporation of your State, which runs the State portal and picks the beneficiaries
• District Level: The District Agriculture Officer of your district, who gives you the list of empanelled machines, the dates and the target of the year
• Bank Level: The branch of your bank, for a Custom Hiring Centre or a Farm Machinery Bank that uses a loan with a credit linked subsidy

Frequently Asked Questions (FAQs)

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.