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State-wise Tractor Subsidy Schemes 2026

Updated on 26th August, 2026, By Gaurav Singh
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State-wise Tractor Subsidy Schemes 2026

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.

Table of Contents

At a Glance: Tractor Subsidy Schemes

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%

About Tractor Subsidy Schemes in India

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.

Central Government Tractor Subsidy Scheme 2026

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:

  • Subsidy range is 25%–50% of tractor purchase price
  • SC/ST farmers, women farmers, small and marginal farmers are eligible for this scheme.
  • Application portal is- agrimachinery.nic.in (official Government of India portal)
  • PM Kisan Samman Nidhi beneficiaries may receive priority consideration in several states.
  • SMAM subsidy is credited directly to farmer's bank account after purchase verification.

State-Wise Tractor Subsidy Schemes 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

Who Is Eligible for a Tractor Subsidy in India?

Sometimes eligibility criteria can vary in different states but some common eligibility criteria in most states are as follows:

  • Local resident farmers who own or cultivate agricultural land.
  • No previously received tractor subsidy from any government scheme in the 7-10 years.
  • A small or marginal farmer, but some states allow all category farmers.
  • SC/ST farmers, women farmers, and farmer producer organization (FPO) members often get a higher subsidy percentage.
  • There can only be a maximum of one subsidy per household per scheme cycle.
  • Usually, 20 HP to 70 HP tractors are eligible for the subsidy. In some states, below 45 HP tractors are only considered for the subsidy.

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.

Documents Needed for Tractor Subsidy

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:

  • Aadhaar card (mandatory for DBT credit)
  • Aadhaar-linked account passbook or cancelled cheque
  • Land ownership or land lease records (7/12 extract, Bhu-Naksha, or Pahani)
  • Caste certificate (for SC/ST category applicants)
  • Passport-size photographs
  • Tractor quotation or invoice from an authorized dealer
  • Income certificate (where applicable)
  • A valid mobile number linked to Aadhaar

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.

Conclusion

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.

Frequently Asked Questions On State-Wise Tractor Subsidy Schemes

1. How to get subsidy on a tractor?

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.

Gaurav Singh
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Gaurav Singh
Gaurav is an SEO professional experienced in Agriculture & Travel industry. His love for automobile has translated in delivering expert content for Tractor & farm machinery related topics. He holds a Bachelor's degree in Botany. When not working on SEO, he loves to play cricket and explore new places, constantly seeking inspiration from new experiences and creative expressions.
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