Sub-Mission on Agricultural Mechanization
Ministry of Agriculture & Farmers' Welfare
Implementing agency: Department of Agriculture & Farmers' Welfare (State Directorates)
Key Benefit
Up to 80% subsidy
About this Scheme
India's farm mechanization level is approximately 45% compared to 95% in developed countries. The gap is most acute among small and marginal farmers who cannot afford individual machinery ownership. SMAM was launched in 2014 to bridge this gap through direct subsidies and Custom Hiring Centres (CHCs).
To bring advanced farm machinery and tools to small and marginal farmers by promoting financial assistance and custom hiring services, reducing drudgery of farm labour, improving timeliness of operations, and reducing post-harvest losses.
What You Get
Individual farmer subsidies: 50% subsidy for SC/ST/women/small and marginal farmers on eligible farm machinery. 40% subsidy for other farmers. Custom Hiring Centre subsidy: 40% subsidy (up to ₹10 lakh per CHC) for groups/FPOs/SHGs setting up machinery pools.
Important before applying
Eligible machinery list is updated annually and varies by state. Apply before purchasing — post-purchase applications are rejected. Priority is given to SC/ST farmers, women farmers, and farmers from hilly/NE states.
Unlock this scheme to grow, build your mission, and become a Family Farmer
Unlock schemes to grow your farm, provide pure food to families who need it, contribute to fixing the environmental crisis, and be a living example that agriculture is the primary healthcare infrastructure of Bharat.
