Smart planning is needed to choose the perfect tractor model for your farms. Tractor prices differ as per their HP, features, etc., and a lot of farmers can find it difficult to make the whole payment upfront. Due to reasons like this, tractor subsidy is given to farmers to help them in buying a new tractor.
Tractor subsidies differ widely from state to state, so it becomes important to know the state-wise tractor subsidy details. The article below discusses the state-wise tractor subsidy details, application process, etc., to help you save money and enjoy maximum benefits.
|
State |
Subsidy Percentage |
|
Rajasthan |
Up to 40% |
|
Maharashtra |
Up to 50% |
|
Madhya Pradesh |
40%-50% |
|
Uttar Pradesh |
Up to 25% |
|
Punjab |
Up to 40% |
|
Bihar |
Up to 50% |
|
Gujarat |
25%-40% |
|
Karnataka |
Up to 50% |
|
Andhra Pradesh |
Up to 35% |
|
Odisha |
Up to 50% |
Tractor subsidy schemes in India are financial assistance programs provided by central or state governments to reduce the purchasing cost of tractor for farmers. Tractor subsidies offered by central and state governments usually range from 25% to 50% of the tractor's ex-showroom price. There are mainly two types of tractor subsidies and they are as follows:
Central Government Schemes: Ministry of Agriculture & Farmers' Welfare fund and manage these schemes in collaboration with state governments.
State Government Schemes: These schemes don’t have support from the central government. The application portals, eligibility rules, and budgets allocated for these schemes differ in each state.
Sub-Mission on Agricultural Mechanization (SMAM) is the main central government scheme for tractor subsidy in 2026. Ministry of Agriculture & Farmers' Welfare handles this scheme, and eligible farmers get a subsidy of 25% to 50% of the tractor's cost. SC/ST category farmers and other marginal farmers get a higher percentage subsidy.
Key points about SMAM 2026:
|
State |
Subsidy Percentage |
Eligibility criteria |
|
Rajasthan |
Up to 40% |
Small/marginal farmers, valid Bhu-Naksha land record required |
|
Maharashtra |
Up to 50% |
SC/ST and women farmers get priority, Aadhaar-linked bank account mandatory |
|
Madhya Pradesh |
40%-50% |
Farmer must not have availed tractor subsidy in past 7 years |
|
Uttar Pradesh |
Up to 25% |
Valid Kisan Credit Card holders preferred |
|
Punjab |
Up to 40% |
Must own agricultural land in the applicant's own name |
|
Bihar |
Up to 50% |
Prioritized for women-headed households and SC/ST farmers |
|
Gujarat |
25%-40% |
i-Khedut portal application mandatory |
|
Karnataka |
Up to 50% |
Raitha Spandana scheme, priority for Kharif season applicants |
|
Andhra Pradesh |
Up to 35% |
AP Farmers' Welfare scheme, Aadhaar-seeded land record required |
|
Odisha |
Up to 50% |
KALIA or BOLANGIR scheme beneficiaries get additional weightage |
Sometimes eligibility criteria can vary in different states but some common eligibility criteria in most states are as follows:
It is important to note here that farmers who qualify under multiple categories may receive the highest available subsidy rate under that state's priority rules. For example, a woman farmer from an SC background will get more subsidy as compared to an ordinary farmer.
Rejection or delay in getting a tractor subsidy can be avoided simply by keeping all the required documents ready at the verification stage. Here is a list of all the documents needed in most states:
The tractor subsidy application process in 2026 is mostly digital. A majority of states need online registration through state agriculture portals or the central agrimachinery.nic.in portal.
Tractor subsidy schemes in India provide an opportunity to small farmers to reduce their upfront tractor buying costs. Farmers get subsidies ranging from 25% to 50% depending on the state where they apply for it. Also, the application process has become digital and easily accessible to all farmers.
To get a government subsidy on a tractor, apply through national or state agricultural portals like agrimachinery.nic.in.
Yes, you can get a specialized agricultural loan to buy a new or used tractor.
The primary tractor subsidy scheme by central government in India is SMAM.
Farmers generally get subsidies ranging from 25% to 50% of the total cost.
Tractor subsidy money is paid through Direct Benefit Transfer (DBT) directly into the verified bank account of the farmer after physical inspection.