Subsidy on Tractors, Rotavators, and Farm Machinery for Farmers in India – Complete Guide Farmar 2
Modern farming requires the right machinery. Tractors, rotavators (rotary tillers), seed drills, threshers, power tillers, etc., help increase efficiency, save labour, reduce time, and improve yield. But such machines are expensive. To help small & marginal farmers, women farmers, SC/ST, and others, the Government of India and many state governments provide subsidies under farm mechanization programs. This guide explains everything you need to know to avail such subsidies.
Central Schemes / Mechanization Schemes
Sub-Mission on Agricultural Mechanization (SMAM)
- Under the Ministry of Agriculture & Farmers Welfare.
- Objective: increase reach of farm mechanization to small & marginal farmers, reduce cost of cultivation, improve timeliness of farm operations.
- Provides subsidy assistance for purchase of tractors, power tillers, rotavators, seed drills, threshers, reapers, etc.
- Subsidy % & maximum permissible subsidy amount depends on type of equipment & category of farmer (SC/ST, women, small/marginal).
State-Specific Mechanization Schemes
Many states have their own versions or supplement SMAM with their schemes. For example:
- Tamil Nadu’s scheme through the Agricultural Engineering Department, subsidy support for equipment like rotavators, power tillers, seed drills, etc.
- Arunachal Pradesh has “Mechanization & Technology” assistance under state agricultural dept with patterns similar to SMAM.
What Machinery / Equipment Are Subsidized
Typical machinery that is commonly eligible under these subsidy programs includes:
- Tractors (various PTO HP ranges: e.g. 8-20 HP, above 20-70 HP)
- Rotavators / Rotary Tillers
- Power Tillers (below and above certain BHP)
- Seed cum Fertilizer Drills, Seed Drills, Disc Ploughs, Harrows
- Reapers / Self-Propelled Reapers, Threshers etc
- Other implements like bund formers, straw balers, power weeders etc.
Subsidy Percentage & Maximum Assistance Amounts
These vary depending on:
- Equipment type (tractor vs smaller implement)
- Category of farmer (SC/ST, women, small & marginal) vs other farmers
- State vs central assistance
Here are typical subsidy levels under SMAM / state schemes:
| Equipment Type | Subsidy for SC/ST, Women, Small & Marginal Farmers | Subsidy for Other Farmers | Approx Maximum Subsidy Amount |
|---|---|---|---|
| Tractor (8-20 PTO HP) | ~35% | ~25% | ~₹1.00 lakh for smaller range, ~₹1.25 lakh for larger range |
| Tractor (20-70 PTO HP) | ~35% | ~25% | Higher subsidy amount, sometimes ~₹1.25 lakh or more for stronger tractors |
| Power Tiller (<8 BHP) | ~50% | ~40% | ~₹0.40-0.50 lakh |
| Rotavator | ~50% / ~60% for SC/ST etc | ~50% or less for others | Depending on HP, sometimes max caps (₹20,000-₹30,000 or more) |
These numbers are indicative; actual subsidy and caps vary by state and current guidelines.
Eligibility Criteria
To qualify for subsidy on tractors, rotavators, or other farm machinery, farmers must generally satisfy several criteria:
- Farmer Category
- Small & marginal farmers
- SC / ST / women farmers often get higher subsidy
- Sometimes requirement for being resident in the state
- Land Ownership or Lease
- Proof of ownership of cultivable land or long-term lease
- Land records / RTC / Pahani etc
- Existing Machinery
- Usually must not have availed a similar subsidy recently for same kind of machine
- Some schemes may limit one machinery item per farmer per period
- Purpose and Usage
- Machinery must be used for agricultural purpose, not commercial non-farm use
- In many cases, farmer must be cultivating certain minimum area or share of land
- Dealer / Equipment Specs
- Equipment should be purchased from empanelled dealers or approved manufacturers
- Machines should meet technical specifications (HP rating, safety, etc.)
- Bank Loan Tie-ups (in some cases)
- If purchase is financed, certain schemes expect bank loan documentation
Documents Required
To apply, farmers will need the following documents typically:
- Aadhaar Card (identity proof)
- Proof of land ownership / lease (RTC, Pahani, Jamabandi, land survey number)
- Bank passbook copy (for subsidy transfer)
- Passport size photographs
- Caste certificate (if applying under SC/ST/women category)
- Quotation or invoice from a registered machinery dealer/manufacturer
- Tractor RC in cases of implements driven by tractor
- Sometimes income certificate or BPL certificate (depending on scheme)
Step-by-Step Process to Apply
Here’s a general workflow for availing subsidy:
Step 1: Check Scheme Announcement
- Monitor announcements under SMAM or your state agriculture/agr. engineering department
- Get details like cut-off dates, application windows, empanelled dealers
Step 2: Visit Local Office
- Agriculture department / District Agriculture Officer / Agricultural Engineering Department or relevant state machine / mechanization cell
Step 3: Get Empanelled Dealer Quotation
- Go to a dealer approved under that scheme, get a proper quotation of machine with model number, price, etc
Step 4: Fill Application Form
- Application form – either online via state or central agriculture portal or offline at district office
- Provide details: farmer info, land info, category, machine details
Step 5: Submit Documents
- Attach all required documents listed above
- Possibly submit the invoice/quotation, land proof etc
Step 6: Inspection / Verification
- Officials may inspect land, usage, verify dealer/ machine etc
Step 7: Sanction & Payment
- Once verified, subsidy amount gets approved
- Depending on scheme, subsidy may be paid upfront (rare) or post purchase / reimbursement or via bank account
Step 8: Purchase & Obtain Machine
- Farmer purchases the machine from the approved dealer
- If subsidy is reimbursement type, submit purchase invoice and proof
Step 9: Receiving Subsidy
- Subsidy transferred to bank account or adjusted with loan instalments
State-Wise Variation
Each state may have slight differences in subsidy rates, types of machines, processes, etc. It helps to check state agriculture department websites for specific details.
Examples:
- Tamil Nadu provides subsidies for power tillers, rotavators, drill machines etc via agricultural engineering department. Maximum subsidy differs for SC/ST and general farmers.
- Arunachal Pradesh under mechanization & technology scheme, similar assistance with subsidy caps on tractors, power tillers, land development machinery etc.
How Much Subsidy Might You Get – Sample Calculation
To illustrate, here’s sample approximate subsidy amounts for various machines:
| Machine | Approx Cost | Category | Subsidy % | Subsidy Amount | Farmer Pays |
|---|---|---|---|---|---|
| Small Tractor (10-20 HP) | ₹4,00,000 | Small / SC / Women | 35% | ₹1,40,000 | ₹2,60,000 |
| Large Tractor (30-40 HP) | ₹8,00,000 | General Category | 25% | ₹2,00,000 | ₹6,00,000 |
| Rotavator (20-35 BHP) | ₹40,000 | SC/ST/Small Farmers | 60% | ₹24,000 | ₹16,000 |
| Power Tiller (below 8 BHP) | ₹50,000 | Small Farmer | 50% | ₹25,000 | ₹25,000 |
These are illustrative; actual numbers depend on your state and scheme guidelines.
Here are some official links / portals where farmers can apply for subsidy on tractors, rotavators, and other farm machinery through SMAM or similar schemes in India:
- DBT Farm Machinery Portal, Ministry of Agriculture & Farmers Welfare – Government of India (Agricultural Machinery Portal)
- SMAM on MyScheme Portal (Central scheme information) (myScheme)
- KKISAN Karnataka Portal (Farm Mechanisation section) (Karnataka Kisan)
- Sub-Mission on Agriculture Mechanization (Himachal Pradesh) portal (HP Agriculture)
Advantages of Using Subsidized Machinery
- Lower cost of machine purchase
- Faster farm operations (ploughing, tilling, sowing)
- Reduced labour cost and time
- Better yield due to timely operations
- Access to better machinery improves efficiency and crop quality
Common Challenges
- Delay in subsidy payment
- Lack of awareness among farmers about open schemes
- Dealers not empanelled or offering correct machines
- Corruption or misinformation (fake schemes)
- Maintenance cost after purchase
- Matching HP / machine size to farm size
How to Avoid Fake / Fraudulent Schemes
- Always verify scheme details from official government websites or agriculture department
- Check whether the machinery dealer is approved/empanelled under that scheme
- Meet officials in local agriculture or mechanization cell to confirm procedure
- Do NOT pay advance fees to unknown agencies over phone or WhatsApp
Recent Trends & Updates (2025)
- There has been increased support under SMAM for women and SC/ST farmers, with higher subsidy percentages in many states.
- State schemes are encouraging custom hiring centers (CHCs) so that small farmers who cannot buy machines individually can rent/hire machines at subsidized rates.
- Rotavator subsidies are quite active; many states offer higher subsidy for rotavators especially for residue management.
- Mechanization policy is pushing towards modern, efficient, and eco-friendly machines.
13. Step-by-State Links / Portals
You will need to use your state agricultural engineering or agriculture department site to find specific application forms. (General instruction: go to [State] Gov Agriculture / SMAM portal → Mechanization → Apply for subsidy machinery.)
14. Tips for Farmers Before Applying
- Assess your land size: bigger machines suitable if you have enough land to use properly.
- Check machine HP and fuel cost: more HP means more fuel consumption.
- Check after-sales service (dealer support) before buying.
- Keep all documents ready and in updated form.
- Apply early as subsidy funds may be limited and allocated first-come first-serve.
Subsidies for tractors, rotavators, and other farm machinery under SMAM and state schemes are very valuable. They help small, marginal, SC/ST, women farmers afford modern tools that boost efficiency and income. By knowing the scheme rules, preparing required documents, picking approved machines, and applying correctly, farmers can leverage these subsidies.
Mechanization is a major way to modernize agriculture, reduce manual effort, and increase productivity. If you need help identifying what subsidy is available in your region, or which machine suits your farm size, visit your local agriculture office or engineer’s department.