Agriculture contributes to India’s 17-18% GDP. India holds the 2nd position in producing farm outputs globally.
These facts make it evident how massive the agriculture industry in India is. The government of India provides various subsidies for buying tractors and farm mechanisation solutions. These subsidies give financial aid for buying tractors like Mahindra 575, Swaraj 744, and John Deere 5310.
What is Tractor Subsidy?
Tractor subsidies are incentives, grants, and rebates helping farmers buy their farm machinery. These incentives support the economic welfare of small and marginalised farmers.
Top 6 Tractor Subsidies Offered by Indian Government
SMAM – Sub-Mission on Agricultural Mechanisation
SMAM was started in 2014-15 by the Ministry of Agriculture and Farmers Welfare. The scheme aims at meeting small and marginalised farmers’ farm mechanisation needs. This scheme is dedicated to the regions where availability of farm power is scarce.
Under this scheme, the state farmers get 40-50% subsidies that help them buy agricultural equipment and machinery. Whereas for North Eastern Region (NER) states, the limit is 100%, which cannot exceed Rs. 1.25 lakhs per farmer.
RKVY – Rashtriya Krishi Vikas Yojana
RKVY was launched in 2007 to improve the landscape of agriculture and allied sectors. To increase public investments in agriculture and allied sectors, the scheme incentivizes States. This scheme acknowledges farmers’ efforts, mitigates their risks and helps realise agri-business opportunities.
Krishi Yantra Subsidy – Agriculture Machinery Subsidy Scheme
With the Krishi Yantra Subsidy scheme, the Government provides up to 50% subsidies. Helpful for buying a range of required farm machinery/equipment. To apply for this subsidy, the farmers can visit the official website of UP Agri Pardarshi.
To avail of this subsidy, farmers need to have a copy of their passbook, Aadhar number, mobile number, and passport-size photographs. Upon visiting the official website, you need to fill in all personal details, bank details, and the type of farm machinery you need.
Later on, you will receive a token number through SMS, with which you can further avail of this subsidy.
How Much is the Subsidy for Tractors under Krishi Yantra Subsidy Scheme?
For tractors up to 40 HP, the scheme provides subsidies up to 25% of the prescribed value of tractor models or INR 45,000, whichever is less. In addition, farmers can also get subsidies up to 20-50% for farm equipment like power thresher, land leveller, rotavator, Seed drill machine, tractor-mounted sprayer, etc.
NFSM – National Food Security Mission (IFSM)
NFSM, launched in 2007, is a centrally sponsored scheme. It is a mission-mode program that ensures the extension of improved agricultural services and agro-technology transfer. The program aims to increase agricultural productivity by increasing the land area and soil fertility and optimally using agriculture and farm vehicles.
National Bank for Agriculture & Rural Development (NABARD) Schemes
(NABARD) provides farming projects that empower farmers in rural areas. The scheme subsidises the cost of the farming project. These projects aim to increase employability and enhance farm outputs.
PM Kisan Tractor Yojna
The PM Kisan tractor Yojna is a new 2022 scheme launched by the Central Government. The scheme provides tractors to marginalised Indian farmers at subsidised rates. The scheme allows farmers to purchase tractors at a 50% subsidy.
However, the percentage of subsidy under this scheme can vary from state to state. For example, a state like Haryana offers a subsidy rate of 25%, while Jharkhand has a subsidy rate of 80%.
Eligibility to Apply for PM Kisan Tractor Yojna
To avail of this subsidy, farmers must be residents of India, having an age between 18-60 years. Also, the applicant’s annual income must be equal to or less than 1.5 Lakh per year.
The applicant should not be a beneficiary under any other tractor subsidy scheme. In addition, they must have farming land owned in their name. Plus, they must fall under the small or marginalised farmers’ criteria and should have required income proof handy.
Additionally, the farmers shouldn’t have purchased any tractors in the past 7 years. Only one person per family can apply for this Yojna.
These are the top 6 subsidies which the Agricultural ministry provides to aid farmers’ farm mechanisation needs. All the schemes are verified by the Indian Government. Upon showing the correct documents and proof, small farmers can easily avail the subsidy amount into their account through direct bank transfer.