Subsidy on Tractors and Farm Machinery: Complete Guide for Indian Farmers

Learn how Indian farmers can apply for tractor and farm machinery subsidies through central and state schemes including PM Kisan Tractor Yojana and agrimachinery.nic.in.

Introduction: Why Farm Machinery Subsidy Matters

Mechanization is the future of farming, but the cost of tractors and implements often discourages small and marginal farmers from investing in these tools. To promote agricultural efficiency, both the Central Government and State Governments of India offer various subsidy schemes on tractors, power tillers, harvesters, and other farm machinery.

Whether you are a new farmer looking for your first tractor, or an FPO (Farmer Producer Organisation) planning to upgrade your equipment bank, this guide covers everything:

• Types of subsidy schemes available

• PM Kisan Tractor Yojana explained

• Eligibility and required documents

• How to apply online via agrimachinery.nic.in

• Real-life success stories from Indian farmers

Let’s get started with the roadmap to smart and affordable mechanization! 

                                                                      

1. Central and State-Level Subsidy Schemes

A. Central Government Schemes

1. Sub Mission on Agricultural Mechanization (SMAM)

• Flagship scheme under the Ministry of Agriculture

• Offers 40–60% subsidy on tractors, power tillers, and implements

• Special assistance for SC/ST, women, and NE states

• Applications accepted via agrimachinery.nic.in

2. Rashtriya Krishi Vikas Yojana (RKVY)

• Funds state-wise programs including mechanization

• Can be combined with SMAM in some regions

• Implemented by State Agri Departments

B. State Government Schemes (Examples)

1. Maharashtra

• Up to ₹60,000 subsidy on tractors for small farmers

• Extra 10% for SC/ST and women farmers

2. Punjab

• Implements machinery banks for group farming

• Up to 80% subsidy on Happy Seeders and Super Seeders

3. Karnataka (Krishi Yantradhare Scheme)

• Machinery available for rent at local Custom Hiring Centres (CHCs)

• Online booking via state portal

4. Tamil Nadu

• 50% subsidy on rotavators, transplanters, sprayers

• Mechanization booths and demo units for awareness

“Every state has unique programs. Check with your local agriculture office for full list.”

                                                                       

 

2. PM Kisan Tractor Yojana: What You Need to Know

The Pradhan Mantri Kisan Tractor Yojana is a central-level incentive where registered farmers get 20–50% subsidy on tractor purchases.

A. Key Features:

• All registered farmers are eligible

• Up to ₹1.5 lakh subsidy on new tractors

• Valid only for purchase through approved dealers

• Can be combined with other state schemes

• One tractor per family allowed

B. Who Is It For?

• Small & marginal farmers with landholding

• Individual farmers or farmer groups

• FPOs & SHGs can apply collectively

C. Is it Linked to PM-KISAN?

No. PM Kisan Tractor Yojana is separate from the PM-KISAN cash transfer scheme. However, farmers enrolled in PM-KISAN are often prioritized.

“PM Kisan Tractor Yojana helps farmers modernize faster with less financial pressure.”

                                                                     

 

3. Eligibility and Documents Needed

A. Basic Eligibility Criteria:

• Must be a citizen of India

• Age between 18–60 years

• Must own agricultural land (with land records)

• Must not have taken subsidy on tractor earlier

• Should not be a government employee or tax payer (for some schemes)

B. Required Documents:

Document NamePurpose

Aadhaar CardIdentity verification

Land Ownership Document (7/12 or Patta)Proof of agriculture status

Passport-size PhotographApplication form

Bank Passbook with IFSC CodeFor DBT subsidy transfer

Caste Certificate (if SC/ST)To claim higher subsidy

Quotation from DealerEquipment price validation

Mobile Number (linked to Aadhaar)For OTP and status alerts

“Keep all documents scanned and ready. Most delays happen due to missing or mismatched paperwork.”

                                                                     

 

4. How to Apply Online via agrimachinery.nic.in

The official portal for farm machinery subsidies is: https://agrimachinery.nic.in

A. Steps to Apply:

1. Visit the Portal

• Go to agrimachinery.nic.in

• Click on “Farmer Corner” in the main menu

2. Register as Farmer

• Enter Aadhaar, mobile, and personal details

• Validate with OTP

3. Fill Application Form

• Choose your scheme (SMAM/PM Yojana)

• Select machinery, upload dealer quote

• Attach documents (PDF/JPEG format)

4. Track Application

• Get status updates via SMS or email

• Log in to portal anytime to check progress

5. Receive Approval & Purchase

• Visit approved dealer with approval letter

• Subsidy credited to bank account (DBT)

B. Offline Method (For States Not Fully Online)

• Visit Block Agriculture Office or KVK

• Fill physical form, attach Xerox of documents

• Get dealer approval and submit application

• Follow status offline via local agri officer

“Online application ensures transparency and faster disbursement of subsidy.”

                                                                           

 

Conclusion: Your Machinery, Your Growth Engine

With subsidy support from government, modern farm tools are no longer a luxury but a necessity that pays back. Whether you need a basic power tiller or a modern rotavator, there are schemes and subsidies to assist you.

✅ Check eligibility carefully
✅ Gather the right documents
✅ Apply online to avoid middlemen
✅ Use subsidy smartly — buy quality, not just low cost

“Mechanization is not just about speed. It’s about precision, efficiency, and profitability.”

suggested reading

1. Home Organic Gardening for Beginners: A 5000-Word Guide

2.Official Agrimachinery Subsidy Portal