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Government strengthens farm mechanisation drive through SMAM scheme
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Monday, 17 August, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Government of India is strengthening agricultural mechanisation through the Centrally Sponsored Sub-Mission on Agricultural Mechanisation (SMAM), implemented by the Department of Agriculture and Farmers Welfare (DA&FW) through State Governments under the umbrella of the Rashtriya Krishi Vikas Yojana (RKVY).
The scheme aims to expand access to farm machinery, particularly among small and marginal farmers and in regions with low farm power availability. It also promotes Custom Hiring Centres (CHCs) to help farmers access machinery without bearing the high cost of individual ownership, especially where small landholdings limit economies of scale.
Under SMAM, farmers receive financial assistance of 40–50% of the cost of agricultural machinery and equipment. The scheme also provides 40% assistance for establishing CHCs for projects costing up to Rs. 250 lakh. Farm Machinery Banks (FMBs) receive assistance of up to 80% of project cost for projects costing up to Rs. 30 lakh, while the assistance rises to 95% for FMBs in the North Eastern States.
SMAM encourages the adoption of advanced technologies such as precision agriculture tools, drones and other modern mechanisation solutions, along with women-friendly farm implements. It also supports machinery testing and certification, demonstrations, training and capacity-building programmes to facilitate wider adoption of new technologies.
The government is also implementing the Crop Residue Management (CRM) Scheme in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and the National Capital Territory of Delhi to promote sustainable management of crop residues and curb stubble burning. Since 2023–24, the CRM Scheme has been integrated with SMAM under RKVY with a 60:40 Centre-State funding pattern. The programme supports subsidised machinery, CHCs and other crop-residue management measures.
Mechanisation in horticulture is promoted through the Mission for Integrated Development of Horticulture (MIDH), which assists power-operated machinery and tools, including plant protection equipment and new imported machines. Meanwhile, the Agriculture Infrastructure Fund (AIF) provides interest subvention, credit guarantee coverage and medium- to long-term debt financing for eligible infrastructure projects such as CHCs and FMBs.
Research and development in agricultural mechanisation is being undertaken through the Indian Council of Agricultural Research (ICAR), which operates multiple coordinated research and network projects through centres across the country. The government said it continuously reviews global technological developments and adopts suitable innovations and best practices to improve the efficiency, productivity and sustainability of Indian agriculture.
To strengthen domestic manufacturing, the government permits 100% Foreign Direct Investment (FDI) through the automatic route in the agricultural machinery manufacturing sector. The policy is intended to encourage global original equipment manufacturers (OEMs) to establish production facilities in India, while strengthening the domestic agricultural machinery ecosystem and facilitating access to advanced technologies.
Private-sector participation is also being encouraged through CHCs and machinery rental platforms, enabling farmers to hire equipment rather than purchase it. Agri-startups developing innovative machinery and digital mechanisation solutions can receive support through incubation, innovation challenges and funding under the RKVY-RAFTAAR programme. The government has also simplified testing and certification procedures for agricultural machinery to promote quality standards and faster market access.
While there is currently no specific proposal for dedicated collaborative research, technology transfer or commercialisation partnerships with South Korea or other technologically advanced countries exclusively for agricultural mechanisation, India continues to undertake international cooperation in agriculture through existing bilateral and multilateral frameworks. Such collaborations cover areas including joint research, technology transfer, capacity building and exchange of technical expertise.
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