Sub-Mission on Agricultural Mechanization (SMAM)

Summary of the Scheme
Name of Scheme	Sub-Mission on Agricultural Mechanization (SMAM)
Launch Year	2014-15
Benefits	Up to 50% subsidy on eligible farm machinery; up to 40% assistance for Custom Hiring Centres; up to 80% assistance for Farm Machinery Banks
Beneficiary	Farmers, FPOs, SHGs, cooperatives and rural entrepreneurs
Nodal Agency	Department of Agriculture & Farmers Welfare
Subscription	Subscribe here to get Update Regarding Scheme
Mode of Apply	Online through the State Agriculture Department or Farm Machinery DBT Portal

Sub-Mission on Agricultural Mechanization (SMAM): Subsidy on Farm Machinery and Shared Equipment

A tractor-drawn seeder or a harvester can save a farmer days of labour and get a crop in on time, but most small farmers cannot afford one. The Sub-Mission on Agricultural Mechanization (SMAM), launched in 2014-15 by the Department of Agriculture and Farmers Welfare, helps in two ways: it subsidises machines for individual farmers, and it funds shared facilities so that farmers can hire equipment instead of buying it.

The most important rule: do not buy first

The subsidy is released after you have received approval and bought the machine, not before. The correct order is to register, apply, get the sanction or permit, buy from an approved or empanelled dealer, and then have the purchase verified. If you buy a machine before approval, you may lose the subsidy. Check with your State Agriculture Department before spending any money.

SMAM is also now run as a component of PM-RKVY, and the source says the exact machinery, rates and selection depend on your State and its yearly targets. Its FAQ asks whether SMAM is still available in 2026 without giving a direct answer, but the source describes it as current, including the revised 2025 operational guidelines and the results through 2025-26.

What it has achieved

From 2014-15 to 2025-26, SMAM supported 21.61 lakh machines, 27,554 Custom Hiring Centres, 646 Hi-Tech Hubs and 25,608 Farm Machinery Banks.

How much assistance you can get

For individual machinery:

1. SC/ST farmers, small and marginal farmers, women farmers, and farmers in North-Eastern and Himalayan States: 50% of the eligible machine cost
2. Other eligible farmers: 40%
3. FRA patta holders: up to 90% under specified provisions
4. Individual machines in the North-Eastern region costing up to ₹1.25 lakh: up to 100%

The subsidy is the lower of the applicable percentage of the State-discovered price or the machine-wise ceiling, calculated before GST. So the actual rupee amount depends on the machine, and you should check the ceiling for your machine before buying.

For shared facilities:

1. Custom Hiring Centres (CHCs): 40% of project cost, for projects up to ₹250 lakh
2. Farm Machinery Banks (FMBs): up to 80% for projects up to ₹30 lakh, usually capped at ₹24 lakh. FRA patta-holder SHGs and FPOs can get 90% (up to ₹27 lakh), and North-Eastern FMBs 95% (up to ₹28.50 lakh)

Kisan Drones can receive assistance of up to 100% or ₹10 lakh per drone, depending on the applicant category.

What machinery is covered

Tractors and tractor-operated equipment, power tillers, seeders and planters, rice transplanters, reapers and harvesters, plant-protection equipment, post-harvest and processing machinery, crop residue management machines (Happy Seeder, Super SMS, mulchers, balers, straw choppers), and drones. Expensive machines, such as tractors above 40 HP, combine harvesters and sugarcane harvesters, are mainly promoted through CHCs and FMBs, not through individual ownership.

Who can apply

1. Individual farmers with valid land records
2. Priority for small and marginal farmers, SC/ST farmers, women farmers, and farmers in the North-Eastern and Himalayan regions
3. FRA patta holders
4. For CHCs: individual farmers, rural entrepreneurs, cooperatives, registered societies, FPOs, SHGs and Panchayats
5. For FMBs: cooperatives, FPOs, SHGs, registered farmer societies and Panchayats
6. For Kisan Drone support: eligible institutions, FPOs and agricultural graduates who meet the education and drone-pilot training conditions

About Custom Hiring Centres

1. The subsidy is credit-linked and back-ended, paid through the banking process after the project is set up.
2. Projects above ₹50 lakh need a Detailed Project Report.
3. Training through an FMTTI or a reputed institution is required.
4. Priority goes to areas with low farm power and many small landholdings.
5. CHCs must be georeferenced, and part of CHC and Hi-Tech Hub funds is earmarked for SHGs under DAY-NRLM.

About Farm Machinery Banks

1. Credit linkage is required for projects above ₹10 lakh.
2. Generally only one tractor is allowed per FMB project.
3. At least 25% of the FMB budget is earmarked for processing and value-addition FMBs run by women SHGs under DAY-NRLM.
4. Priority goes to low-mechanisation villages, rainfed areas and aspirational districts.

Documents

1. Aadhaar or other identity proof
2. Land records
3. Bank passbook or account details for DBT
4. A passport-size photograph
5. A mobile number for OTP verification
6. A caste certificate, if you claim category-based assistance
7. A Soil Health Card, where required
8. For CHCs and FMBs: registration documents of the group, a DPR where prescribed, loan sanction documents where credit linkage applies, and training or certification papers
9. For drones: education and drone-pilot training or certification documents

How to apply

1. Ask your State Agriculture Department whether your State uses the central Farm Machinery DBT Portal or its own portal.
2. On the DBT portal, choose farmer registration (there are separate categories for farmers, societies, entrepreneurs and manufacturers).
3. Enter your name exactly as on your Aadhaar. Select your district, sub-district, block and village, and the right farmer category, farmer type and gender, since these are checked.
4. Enter your mobile number and complete OTP verification.
5. Add your land details and bank account to your profile. The portal will not let you finish a machinery application without them.
6. In the machinery application section, select the machine you need.
7. Submit the application and wait for approval. If applications exceed the State’s target, selection may be by online lottery or another State-prescribed process.
8. After approval, buy the machine from an approved or empanelled dealer, checking the price and ceiling first.
9. The dealer uploads the bill and details, and physical verification follows.
10. For machines costing ₹1 lakh or more, georeferencing and machine identification must be done.
11. The subsidy is released by DBT to the beneficiary or the dealer, depending on the option you chose.

For CHCs, FMBs and other group projects, follow the State’s procedure, which includes project approval, financing and training.

Where to get help

1. Mechanization and Training Division: 011-23604908, mobile 8076258719, support-agrimech@gov.in
2. Address: Krishi Bhawan, New Delhi
3. State-specific help: the State Nodal Officer listed on the Farm Machinery DBT Portal

Related scheme

For financing agricultural infrastructure, including Custom Hiring Centres, the source also points to the Agriculture Infrastructure Fund (AIF), which can be considered alongside SMAM.