State-wise Subsidies for Agricultural Machinery in India

Agricultural machinery, especially tractors, plays a vital role in easing the workload for farmers and increasing productivity. Recognizing the significance of these machines, several states in India have introduced subsidies and schemes to support farmers in their agricultural endeavors. Here, we present a comprehensive list of state-wise subsidies for agricultural machinery, empowering farmers to adopt modern techniques and enhance their crop cultivation.

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State-wise Subsidies

1. Telangana - Yantra Laxmi Scheme:

Telangana's Yantra Laxmi Scheme offers a 50% subsidy on tractor purchases. Under the Farm Mechanization Scheme, it also provides support for buying other farming equipment. Additionally, SC/ST farmers can avail a 100% subsidy. Eligible bachelors can apply for a loan from SBI with insurance and collateral security.

2. Karnataka:

The Karnataka state government aims to promote timeliness, productivity, and reduced labor in farming. To achieve these goals, the government plans to provide necessary machinery on a rental basis through the "Uber for Agricultural Services" scheme. Farmers can access machinery from partnering automobile manufacturers like VST Tillers, John Deere, and Mahindra. Loans are available at the same interest rate as agricultural term loans, with a repayment period of up to 9 years.

3. Tamil Nadu:

Tamil Nadu's Agricultural Mechanization Program offers subsidies for various machines, including power tillers, paddy trans-planters, rotavators, seed drills, zero-till seed fertilizer drills, bund formers, power sprayers, and machines operated by tractors such as straw balers, power weeders, and brushcutters. General farmers receive a 40% subsidy, while SC/ST farmers receive a 50% subsidy. The government has allocated Rs 30.75 lakhs to support this initiative.

4. Kerala:

The Kerala government has introduced the Farm Mechanization System (FMS), a software system that ensures transparency in machinery distribution. Tractor purchases are eligible for a 25% subsidy, while loans are available for other equipment such as tillers and rotavators. Loan repayment periods range from 5 to 10 years, excluding the gestation period.

5. Andhra Pradesh:

In Andhra Pradesh, the distribution of tractors is carried out under the Rythu Radham scheme. Eligibility criteria include owning at least one acre of land and not owning a tractor. ICICI Bank provides loans with a repayment deadline of 5 years.

Also Read: All Agricultural Insurance Schemes Provided by Indian Government: An Overview

6. Maharashtra:

Under the Farm Mechanization Scheme, Maharashtra offers a 35% subsidy for tractors and 50% for other machines to small, marginal, and SC/ST farmers. General category farmers receive a 25% subsidy for tractors and 40% for other machines. Loans are available as term loans with repayment periods of 5-9 years, and no margin is required for loans under Rs 1 lakh.

7. Madhya Pradesh:

Madhya Pradesh provides subsidies for small tractors through the Macro-Management Scheme. This scheme, in collaboration with the state and central governments, aims to address the low availability of tractors in Madhya Pradesh. Loans are also available to support farmers in their machinery purchases.

8. Uttar Pradesh:

Uttar Pradesh's Krishi Yantra scheme offers a subsidy of 25% of the cost or Rs 45,000 (whichever is less) for tractor purchases. Prathama Bank, in collaboration with Mahindra, Swaraj, and Sonalika, provides tractor loans.

9. Rajasthan and Haryana:

Both Rajasthan and Haryana operate under the Farm Mechanization scheme. Sarva Haryana Bank in Haryana and AU Bank in Rajasthan provide loans. The schemes focus on encouraging the adoption of modern techniques to increase production.

10. Assam:

In Assam, the Chief Minister Samafre Gramya Unnayan Yojana (CMSGUY) offers a substantial subsidy of 70% (up to Rs 5.5 lakhs) for tractors. Eligible farmers must own a minimum of 2 acres of land, and groups of 8-10 farmers can also avail the benefits. SBI provides loans for the purchase of other machines.

Also Read: Farmer Welfare Schemes Launched by Modi Government in the Last 9 Years

11. Odisha:

Odisha's capital investment and Farm Mechanisation schemes provide a 50% subsidy for tillers and a 40% subsidy for tractors. Odisha Gramya Bank offers hassle-free loans for the purchase of agricultural vehicles, covering 85% of the cost with a 15% margin.

12. Gujarat:

In Gujarat, the government provides tractor subsidies of over 25% for the general category and 35% for special categories. Training and workshops are conducted to raise awareness about the importance of agricultural machinery. Loans from Dena Gujarat Gramin Bank are easily accessible.

13. Punjab:

Punjab implements the Kisan Dost Finance scheme, along with loans available from Punjab National Bank. These initiatives aim to provide financial assistance to farmers in Punjab to procure agricultural machinery and equipment.

14. West Bengal:

West Bengal offers an HDFC loan and a tractor plus protection scheme. These programs provide financial support and insurance coverage to farmers in West Bengal for the purchase of tractors and other agricultural machinery.

15. Himachal Pradesh and Meghalaya:

Himachal Pradesh and Meghalaya also follow the farm mechanization scheme and the SMAM (Sub-Mission on Agricultural Mechanization) scheme. These initiatives aim to promote the use of modern machinery and technology in agriculture, enabling farmers in these states to enhance their agricultural practices and productivity.

16. Arunachal Pradesh:

Arunachal Pradesh provides loans through ICICI Bank to support farmers in the procurement of agricultural machinery. These loans enable farmers in the state to access the necessary funds for the purchase of equipment, thereby facilitating mechanized farming practices.

These states' initiatives further highlight the commitment of various regional governments in India to uplift the agricultural sector by providing financial assistance and support for the adoption of advanced machinery and technology. By availing these subsidies and loans, farmers across the country can optimize their farming operations and contribute to increased productivity and sustainability in agriculture.\

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