Under its Sub-mission on Agriculture Mechanization (SMAM), the Indian government is providing subsidy on the purchase of machines driven by tractor/power tiller (below 20 BHP) for land development, tillage and seed bed preparation.
The Indian government’s department of agriculture, cooperation and farmers welfare (DACFW) is giving the subsidy through the direct benefit transfer (DBT) by its mechanization and technology (MT) division.
Under the scheme, different categories of beneficiaries are given subsidies in the range of up to 40-50% of the total cost per machine. Subsidy up to 50% of the total cost of the tractor is given to the women, small and marginal farmers and those belonging to the scheduled castes (SC), scheduled tribes (ST) and northeast states. For other beneficiaries, the subsidy is up to 40% of the total cost.