Government Schemes

Tractor Subsidy Scheme 2026: State-wise Rates, Eligibility and Apply Online

Tractor Subsidy Scheme 2026: State-wise Rates, Eligibility and Apply Online7 min read

Most tractor subsidy in India comes through the Sub-Mission on Agricultural Mechanization (SMAM) and state schemes. Support is about 40% for general farmers and about 50% for SC/ST, women, small and marginal farmers, capped in rupees by tractor size. There is no "free tractor" scheme. Apply on your state DBT portal or the central portal when the window is open.

How tractor subsidy works in India

The central government does not hand out tractors. It part-funds the purchase through the Sub-Mission on Agricultural Mechanization (SMAM), and the states run the applications. You buy the tractor from a registered dealer. The subsidy is then paid to your Aadhaar-linked bank account by Direct Benefit Transfer after verification. Think of it as a refund on a fixed part of the price, not a discount at the showroom. Our agriculture subsidy schemes guide shows where SMAM sits among all central schemes.

SMAM also supports farm machinery banks and custom hiring centres so small farmers can rent machines instead of owning them. If you need a tractor for only a few weeks a year, renting can be the smarter move.

Tractor subsidy rates: what the sources agree on

Category of farmerTypical supportNote
General category farmerAbout 40% of costCapped in rupees by tractor PTO HP band
SC / ST, women, small and marginal farmersAbout 50% of costHigher rate; category proof needed
Groups, FPOs, cooperatives (machinery banks, custom hiring centres)Higher support for selected cases, up to 80% in some categoriesNot the same as an individual tractor purchase. Check the scheme order

Read This: These percentages come from several sources that agree on the band but not on exact caps. Treat them as a planning range. The final amount is whatever your state sanction letter says.

The rupee cap usually depends on the tractor's PTO horsepower and whether it is 2WD or 4WD. Compact tractors often get a better deal than heavy models. That is why asking only "what percent" can mislead. Ask "what is the maximum rupee amount for my HP band".

State-wise tractor subsidy: what we could confirm

Rules and budgets are state-specific and many windows open for only a few weeks.

StateWhat was reportedWhere to apply
MaharashtraUp to 50% on tractors through the MahaDBT farmer portal; the 2025-26 window was reported as Dec 2025 to Feb 2026MahaDBT (state portal)
Himachal Pradesh50% extended to small and marginal farmers under the state's Agriculture Engineering Sub-MissionState agriculture department
Madhya Pradesh, Uttar Pradesh, Rajasthan and othersSearches for 2026 windows are active, but we did not find an official order we could verifyState agriculture or farmer welfare department portal

Do not trust a chart on a dealer's blog that shows one number for the whole country. Open your own state agriculture department page and read the latest order. Dates for each scheme through the year are collected in our agri schemes calendar.

Who is eligible for tractor subsidy?

  • An Indian farmer with agricultural land in own name (records matter).
  • Usually one subsidised tractor per farmer within a set number of years. Some states allow it only once in several years.
  • A tractor from a manufacturer and dealer on the state's approved list, meeting BIS or test-centre norms.
  • An Aadhaar-linked bank account for DBT.
  • For the higher rate: caste certificate (SC/ST), small or marginal land proof, or woman farmer status as per the state order.

How to apply for tractor subsidy online

  1. Register on your state's DBT or farmer portal, or on the central SMAM DBT portal where your state uses it.
  2. Check the window. Many states open applications on fixed dates and close once the budget is used. Selection can be first-come or by lottery.
  3. Apply for the tractor category and choose your HP band. Upload Aadhaar, land record, bank passbook and category proof.
  4. Wait for sanction. You usually get a sanction letter or SMS.
  5. Buy from an approved dealer within the time limit on the letter. Keep the invoice, RC and delivery photo.
  6. Upload the invoice and take the inspection. An officer verifies the tractor.
  7. Subsidy comes by DBT to your bank account.

Warning: Never pay "registration" or "approval" money to any agent. Subsidy applications on official portals are free. Do not buy a tractor before the sanction letter unless your state order explicitly allows it, or you may lose the subsidy.

"Free tractor yojana" and "PM Kisan tractor yojana": myth vs fact

Claim you may seeWhat is true
"PM Kisan Tractor Yojana gives 50% or a free tractor"PM-KISAN is an income-support scheme that pays Rs 6,000 a year in three instalments. We found no official tractor scheme under that name. Posts using this name usually describe SMAM or a state subsidy. To check your instalment, see our PM-Kisan installment status guide
"Free tractor, apply here"No such central scheme. Treat it as a scam or a lead-generation page
"80% subsidy on agricultural machinery"Applies to selected categories such as group machinery banks or custom hiring centres in some regions. It is not the rate for one farmer's tractor

Before you buy: do the maths beyond the subsidy

A subsidy lowers the price. It does not lower the diesel, the loan interest or the repair bills. Ask how many hours a year the tractor will really work. If it is low, a rented machine or custom hiring centre may cost less. Groups can pool money: read our SHG vs FPO guide and how the FPO credit guarantee scheme can help a group buy machines. For the loan side, see the Kisan Credit Card scheme.

Looking at drones instead of a tractor? Our agri drone subsidy guide covers SMAM and Namo Drone Didi. For scheme text and guidelines, use the Ministry of Agriculture & Farmers Welfare site.

Conclusion

Treat the subsidy as a bonus, not the reason to buy. If the numbers work with the subsidy, wait for your state window, apply on the official portal and buy only after the sanction letter. If they do not, a custom hiring centre may serve you better. For every other scheme you can use, read our agriculture subsidy schemes guide.

Why trust this guide

Written by Team Katyayani, Editorial Team at Katyayani Organics. Cross-checked against published research and university extension programs.

tractor subsidySMAMfarm mechanisationagricultural machinery subsidygovernment schemesPM KisanDBTcustom hiring centre

Questions Farmers Ask

Can I apply for the free tractor yojana online?
There is no central "free tractor" scheme. You can apply online for a subsidy on a tractor through your state's DBT portal or the central SMAM portal, but you still pay the balance. Be careful with websites that promise a free tractor or ask for a registration fee.
Will the PM Kisan Yojana tractor subsidy be available in 2026?
PM-KISAN is an income-support scheme that pays Rs 6,000 a year. We found no official tractor subsidy under that name. Tractor support in 2026 comes through SMAM and state schemes, with rates around 40-50%. Check your state portal for the current window.
What is the 80% subsidy on agricultural machinery?
Higher support such as 80% applies only to selected categories, for example group machinery banks or custom hiring centres in some regions. It is not the usual rate for one farmer buying a tractor, which is mostly about 40-50%. Read the specific scheme order before relying on it.
How to apply for tractor scheme?
Register on your state farmer or DBT portal, apply when the window is open, choose the tractor HP band and upload Aadhaar, land record, bank details and category proof. After sanction, buy from an approved dealer, upload the invoice, pass inspection and receive the subsidy by DBT.
What is the tractor subsidy rate in Maharashtra for the year 2026?
Maharashtra has been reported to support tractors at up to 50% through the MahaDBT portal, with the cap depending on HP and farmer category. The 2025-26 window was reported as December to February. Check MahaDBT for the live 2026-27 window and cap.
Who is eligible for PM Kisan tractor Yojana?
There is no official scheme by that name, so there is no eligibility list. The subsidy people mean is SMAM or a state scheme. These generally need land in your name, an Aadhaar-linked bank account, an approved tractor model and, for higher rates, SC/ST, women or small and marginal farmer proof.
Is there any subsidy on tractors in India?
Yes. SMAM and state schemes support tractor purchase, commonly at around 40% for general farmers and 50% for SC/ST, women and small or marginal farmers, within a rupee cap by HP. Availability depends on your state's budget and application window.
What are the SMAM guidelines for 2026-27?
We could not verify an official 2026-27 guideline table in the sources we checked. SMAM guidelines are on the Ministry of Agriculture site and the DBT portal. Check the latest document for percentages, caps, eligible machines and the categories with higher support.
What is the agri SMAM scheme?
SMAM is the Sub-Mission on Agricultural Mechanization. It gives financial support to buy farm machines, set up custom hiring centres and farm machinery banks, and run demonstrations, so small and marginal farmers can use modern machinery without carrying the full cost.
What is the percentage of farm mechanization in India?
There is no single official percentage. Mechanisation is high for tillage and threshing and much lower for sowing and harvesting of many crops, and estimates differ by source and crop. For a reliable figure use ICAR-CIAE or Ministry of Agriculture data rather than blogs.
T

Editorial Team

The Katyayani Organics editorial team brings you the latest in agricultural knowledge and farming best practices.

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