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SIGNUP

Sub-Mission on Agricultural Mechanization (SMAM)

At a glance

SMAM, run by the Ministry of Agriculture & Farmers Welfare since 2014-15, helps farmers afford machines — tractors, power tillers, rotavators, reapers, weeders and more — and brings machinery within reach of small farmers through Custom Hiring Centres (CHCs), where equipment can be rented pay-per-use instead of bought. In recent years SMAM has also driven the "kisan drone" push, subsidising agricultural drones for spraying and crop monitoring. Applications and subsidy payments run through the Direct Benefit Transfer portal at agrimachinery.nic.in.

Who is eligible

  • Individual farmers — with higher subsidy for SC/ST farmers, women farmers, small and marginal farmers, and farmers in north-eastern states.
  • Groups: rural entrepreneurs, farmer cooperative societies, registered farmer societies, Self-Help Groups, Farmer Producer Organisations (FPOs) and panchayats — mainly for setting up Custom Hiring Centres and farm machinery banks.
  • Institutions (ICAR bodies, KVKs, agricultural universities) for drone demonstrations.

Benefits

  • Machinery purchase subsidy: 50% of cost for SC/ST, small and marginal, women and north-east farmers; 40% for other farmers (per-machine caps apply — confirm the cap for your machine on the official portal).
  • Custom Hiring Centres: financial assistance of around 40% of the project cost for individuals and groups setting up CHCs or hi-tech machinery hubs; larger projects are credit-linked (subsidy released after a bank loan). Exact limits depend on project size — confirm on the official portal.
  • Kisan drones: 50% of drone cost up to Rs 5 lakh for SC/ST, small and marginal, women and north-east farmers; 40% up to Rs 4 lakh for other farmers; 75% grant to FPOs for demonstrations; 100% of cost (with contingency) to ICAR institutes, KVKs, state agricultural universities and farm machinery training institutes for demonstrations on farmers' fields.
  • Rent instead of buy: even without a subsidy of your own, you can hire machines from your nearest CHC at village-level rates.

How to apply

  1. Register as a farmer on the DBT portal: https://agrimachinery.nic.in (choose your state; registration uses Aadhaar).
  2. Apply for the machine/implement you want when your state's application window is open; select a dealer from the empanelled list.
  3. After verification and purchase, the subsidy is credited directly to your bank account.
  4. For CHC projects, apply under the CHC component through the same portal / your district agriculture office; larger projects need a bank loan tie-up and a margin contribution.
  5. To simply rent machines, ask your agriculture office for the nearest CHC.

Documents required

  • Aadhaar card
  • Bank account details (passbook copy)
  • Land records (as required by your state)
  • Caste certificate (for SC/ST subsidy rate)
  • Passport-size photo; quotation/invoice from empanelled dealer (at purchase stage)

Key dates & status

  • Ongoing since 2014-15. The DBT portal opens state-wise application windows during the year — confirm your state's current window on agrimachinery.nic.in.

Common questions

Q: I am a small farmer and cannot afford a tractor even with subsidy. What are my options? A: Use a Custom Hiring Centre — you rent the tractor or harvester only for the days you need it, at a per-use rate.

Q: How much subsidy will I get on a drone? A: 50% up to Rs 5 lakh if you are an SC/ST, woman, small/marginal or north-east farmer; 40% up to Rs 4 lakh otherwise.

Q: Where does the subsidy money go? A: Directly to your bank account through DBT, after your purchase is verified.

Q: Can our FPO set up a machinery rental business? A: Yes. FPOs, cooperatives, SHGs and rural entrepreneurs can get assistance to establish Custom Hiring Centres and earn rental income.

Sources: https://agrimachinery.nic.in, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1985470, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1822070, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1909215, https://agrimachinery.nic.in/Files/Guidelines/smam1819.pdf. Last verified: 2026-08-07. Always confirm current details on the official portal before acting.