Tractor Scheme in India – Complete Guide for Farmers

Tractor Scheme in India – Complete Guide for Farmers

Agriculture remains the backbone of India, with nearly 60% of the rural population dependent on farming for livelihood. Mechanization has become the need of the hour to improve productivity, reduce manual labor, and increase farmers’ income. However, one of the biggest challenges faced by small and marginal farmers is the high cost of agricultural machinery, especially tractors.

To address this, the Government of India and various State Governments have introduced tractor subsidy and free tractor schemes under multiple agricultural development programs. These schemes aim to provide tractors at highly subsidized rates—or in some special cases, completely free of cost—to eligible farmers.

In this article, we will cover:

• Introduction to tractor subsidy schemes

• Central government programs supporting tractor purchase

• State-specific tractor subsidy and free tractor distribution programs

• Eligibility criteria for farmers

• Required documents for application

• How to apply online and offline

• Benefits of the schemes

• Challenges and limitations

• Government portals for applications

why Free Tractor Schemes are Important

1. Mechanization of farming – Tractors make ploughing, sowing, irrigation, and harvesting much faster and more efficient.

2. Higher productivity – Using machines reduces dependence on labor and increases crop yield.

3. Cost saving in the long run – Though tractors are costly, once acquired they reduce repeated labor costs.

4. Support to small farmers – Schemes ensure that even small and marginal farmers, who cannot afford tractors, get access through subsidies or shared tractor banks.

5. Modernization of rural India – Mechanization aligns with government goals of doubling farmers’ income.

 Central Government Schemes for Tractor Subsidy

The central government provides tractor support under larger agricultural missions.

a) Sub-Mission on Agricultural Mechanization (SMAM)

• Implemented by the Ministry of Agriculture & Farmers Welfare.

• Provides subsidies on purchase of tractors, power tillers, and farm equipment.

• Subsidy ranges from 30% to 50% depending on category:

  • General farmers: 30–40% subsidy

  • SC/ST, women, and small/marginal farmers: 40–50% subsidy

• Tractors up to 35 PTO HP are covered.

b) Rashtriya Krishi Vikas Yojana (RKVY)

• Provides financial assistance to states for promoting mechanization.

• Farmers receive subsidies on tractors and equipment through state agriculture departments.

c) PM Kisan Tractor Yojana (popular term)

• Often promoted at the state level under central funding support.

• Provides 20% to 50% subsidy on tractors.

 State Government Free Tractor / Subsidy Schemes

Many states have introduced special schemes under which farmers can receive tractors at highly subsidized rates.

Telangana

• The Telangana Rythu Bandhu Pathakam primarily provides income support but is often linked with farm mechanization loans.

• Farmers can avail subsidy on tractors through the Agriculture Department under SMAM.

Andhra Pradesh

• The YSR Yantra Seva Scheme provides tractors, harvesters, and farm machinery on a custom hiring basis.

• Farmers’ groups can get tractors with 40% to 50% subsidy.

Karnataka

• Under the Krishi Yantra Dhare Scheme, farmers can get farm equipment including tractors at 50% subsidy.

• Farmers’ groups, FPOs, and cooperative societies are also eligible.

Tamil Nadu

• Provides subsidy of 40% to 50% on tractors under the State Agriculture Mechanization Program.

• SC/ST and women farmers get higher subsidy.

Maharashtra

• Offers tractor subsidy through Agri Department e-Scheme portal.

• SC/ST farmers get up to 50% subsidy.

Uttar Pradesh

• Runs Krishi Yantra Subsidy Yojana, under which farmers can apply online for tractor subsidy.

• Farmers can get ₹45,000 to ₹60,000 subsidy on tractor purchase.

Madhya Pradesh

• Under the Mukhyamantri Krishi Yantra Yojana, farmers can get subsidies up to 50% on tractors.

Bihar

• Provides tractor subsidy up to 50% under the Farm Mechanization Scheme.

Rajasthan

• The Chief Minister Krishi Yantra Subsidy Scheme covers tractors and equipment.

• Farmers can get 40–50% subsidy.

• . Eligibility Criteria

While exact conditions vary across states, general eligibility includes:

• Must be a resident farmer of the concerned state.

• Must possess valid land ownership documents or be part of a farmer producer group/cooperative.

• Small and marginal farmers are given preference.

• Priority to SC/ST, women farmers, and differently-abled farmers.

• Farmer should not have availed subsidy for tractor purchase in the last 7–10 years.

Required Documents

• Aadhaar Card of applicant

• Domicile certificate

• Land ownership documents / cultivation certificate

• Caste certificate (for reserved category farmers)

• Bank account details (for DBT)

• Passport-size photographs

• Quotation/proforma invoice of tractor from authorized dealer

How Much Subsidy or Free Benefit is Given?

• General farmers: 25–35% subsidy

• SC/ST, women, small/marginal farmers: 40–50% subsidy

• In rare cases (such as farmer groups under special state schemes), tractors are provided at 90–100% subsidy (effectively free).

• Example: Andhra Pradesh YSR Yantra Seva scheme provides tractors to farmer groups with 70% loan + 30% subsidy.

Application Process

Online Method

1. Visit the official agriculture department website of your state.

2. Go to the Farmer / Subsidy / Mechanization section.

3. Select Apply for Tractor Subsidy.

4. Fill out the application form with Aadhaar, land details, and bank account.

5. Upload required documents.

6. Submit and note the application number.

Offline Method

1. Visit the District Agriculture Office.

2. Collect the application form for tractor subsidy.

3. Attach required documents and submit.

4. Wait for verification by agricultural officers.

5. Approval is sent to treasury/bank for DBT subsidy.

Benefits of Tractor Subsidy Schemes

• Enables affordable access to mechanization.

• Reduces dependency on manual labor.

• Increases crop productivity and efficiency.

• Encourages farmer groups and cooperatives.

• Reduces cost of cultivation in the long run.

Challenges

• Limited quota of tractors distributed each year.

• Application backlog leads to delays.

• Some farmers struggle with online applications.

• Awareness about schemes is low in rural areas.

10. Government Portals for Applications

Here are some important official websites:

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The Free Tractor Scheme in India is not a single nationwide scheme but a combination of central subsidies (SMAM, RKVY) and state-specific programs. While most farmers receive 30–50% subsidy, certain categories (SC/ST, women, groups) can access tractors at very low or even no cost.

For farmers, it is important to apply early through official portals, maintain complete documents, and make use of agriculture department support. With increased mechanization, these schemes aim to empower farmers, improve crop yields, and ultimately contribute to doubling farmers’ income in India.