**Executive Summary**
The Sub-Mission on Agricultural Mechanization (SMAM), launched in 2014–15 under the Rashtriya Krishi Vikas Yojana, aims to enhance agricultural productivity and inclusivity by providing machinery access to small, marginal, and disadvantaged farmers. With a central assistance of ₹9,404.47 crore distributed through the 2025–26 period, the scheme focuses on reducing labor drudgery and lowering production costs. Key deliverables include the establishment of Custom Hiring Centres, Farm Machinery Banks, and the promotion of drone-based precision agriculture through large-scale demonstrations.
**Key Points / Main Content**
**Strategic Infrastructure and Access**
* **Custom Hiring Centres (CHCs):** Promotes units for hiring farm machinery to address high capital costs and small landholdings.
* **Farm Machinery Banks (FMBs):** Provides 80–90% financial support to SHGs and FPOs to acquire machinery for community use.
* **Hi-Tech Hubs:** Establishes hubs for high-value, high-capacity machinery tailored for specific crop operations.
* **Testing and Certification:** Supports performance testing to ensure the quality and efficiency of agricultural machinery.
**Financial Assistance and Subsidies**
* **Direct Benefit Transfer (DBT):** Offers a 40% subsidy for general category farmers and a 50% subsidy for SC/ST, small/marginal farmers, and beneficiaries in North-Eastern states.
* **Regional Funding Patterns:** Funding is shared 60:40 with most states, 90:10 for North-Eastern/Himalayan states, and 100% for Union Territories.
* **Inclusivity Mandates:** 30% of total scheme funds are earmarked specifically for women farmers.
* **Mechanized Service Support:** Small and marginal farmers receive ₹2,000 per hectare for mechanized services, including drones, through institutional hubs.
**Drone-Based Innovation**
* **Institutional Support:** ICAR institutes, KVKs, and State Agricultural Universities receive 100% financial support (up to ₹10 lakh per drone).
* **FPO Grants:** Farmer-Producer Organizations are eligible for grant support of up to 75% for drone procurement.
* **Demonstration Coverage:** Over 40,928 Kisan Drone demonstrations were conducted across 40,918 hectares between 2023–24 and 2025–26 to promote precision agriculture.
**Impact Analysis**
**Small and Marginal Farmers (including SC/ST and North-Eastern Regions)**
**Impact**
They benefit from increased affordability of modern equipment through 50% subsidies and rental access, reducing reliance on manual labor and animal power.
**Action Required**
Apply for machinery subsidies via the Direct Benefit Transfer (DBT) system or access rental equipment through local CHCs and FMBs.
**Women Farmers**
**Impact**
Access to specialized funding (30% earmark) and 50% machinery subsidies empowers women to participate more actively in mechanized farming and reduces physical drudgery.
**Action Required**
Engage with capacity-building initiatives and submit applications for subsidized agricultural tools tailored to their needs.
**Farmer-Producer Organizations (FPOs) and Self-Help Groups (SHGs)**
**Impact**
These groups serve as primary drivers for mechanization, receiving up to 90% support for FMBs and 75% for drones, enabling them to operate as rural service providers.
**Action Required**
Establish and manage CHCs or FMBs and organize drone-based service models for their members.
**Research and Educational Institutions (ICAR, KVKs, SAUs)**
**Impact**
Provided with full financial backing to lead the technological transition toward precision farming and drone adoption.
**Action Required**
Procure drones using 100% central support and conduct field demonstrations to educate farmers on the application of nutrients and agro-chemicals.
Key Entities Referenced
Sub-Mission on Agricultural Mechanization (SMAM): A flagship Centrally Sponsored Scheme launched in 2014–15 to promote farm mechanization nationwide, focusing on small farmers and underserved regions.
Rashtriya Krishi Vikas Yojana (RKVY): The umbrella flagship scheme (restructured as RKVY-RAFTAR) that provides the financial and administrative framework for implementing SMAM.
Custom Hiring Centres (CHCs): Local units established to provide affordable farm machinery rental services to farmers with small landholdings and limited capital.
Farm Machinery Banks (FMBs): Institutional entities that receive 80–90% financial support to help SHGs and FPOs acquire machinery for custom hiring services.
North-Eastern States: A priority geographical region central to the scheme's applicability, receiving enhanced funding ratios (90:10) and machinery subsidies of up to 100%.
PIB Backgrounder
Sub-Mission on Agricultural Mechanization
Enhancing Productivity through Farm Mechanization
प्रव तथ: 09 JUL 2026 11:28AM by PIB Delhi
The Sub-Mission on Agricultural Mechanization (SMAM) expands access for small farmers, women,
and disadvantaged groups through targeted mechanization support nationwide. Special emphasis has
been placed on underserved and North-Eastern States to address regional disparities in access to farm
machinery and technology. Since its inception, Rs. 9,404.47 crore has supported the distribution of
21.61 lakh agricultural machines to individual farmers across India. Over 40,928 drone demonstrations
covering 40,918 hectares were conducted with Rs.52.5 crore financial support, promoting precision
agriculture adoption nationwide.
Strengthening Agriculture through Farm Mechanization
Farm mechanization plays a critical role in enhancing agricultural productivity in India. It involves using
machines, equipment, and modern technologies for agricultural operations across the crop production
cycle. These operations include land preparation, sowing, irrigation, plant protection, harvesting, and post-
harvest management. By reducing dependence on manual labour and animal power, mechanization
enables timely and efficient farm operations. It lowers production costs and improves the quality of
agricultural practices.
To promote farm mechanization in India, the Sub-Mission on Agricultural Mechanization (SMAM)
was launched in 2014–15. It is a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana
(RKVY). SMAM aims to “reach the unreached” by extending the benefits of mechanization to
underserved sections. It includes small and marginal farmers, including women, Scheduled Castes (SC),
Scheduled Tribes (ST), Farmer-Producer Organizations (FPOs), Self-Help Groups (SHGs), and rural
entrepreneurs.
The scheme promotes the establishment of Custom Hiring Centres (CHCs). These are units comprising
a set of farm machinery, implements, and equipment meant for hiring by farmers. It also supports the
development of hubs for hi-tech and high-value agricultural equipment, and the distribution of farm
machinery. Awareness generation through demonstrations and capacity-building initiatives is also
undertaken. Special focus is placed on regions with low farm power availability and on addressing
structural constraints such as small landholdings and high capital costs through affordable rental services
via CHCs. Additionally, SMAM supports the performance testing and certification of agricultural
machinery. Targeted Information, Education, and Communication (IEC) activities are undertaken to
enhance adoption among stakeholders.The Rashtriya Krishi Vikas Yojana (RKVY), launched in 2007, is a flagship scheme that incentivizes
states to increase public investment in agriculture and allied sectors. It provides states with flexibility
and autonomy to design and implement projects tailored to local needs. The schemes encompass a
broad range of interventions, including crop production, infrastructure development, mechanization, and
value addition. In 2017-18, the Scheme was restructured as the RKVY-RAFTAR (Remunerative
Approaches for Agriculture and Allied Sector Rejuvenation), with an increased focus on
strengthening both pre-and post-harvest infrastructure.
Strategic Pillars of SMAM for Enhancing Farm Productivity
The Sub-Mission on Agricultural Mechanization (SMAM) is designed to promote inclusive and efficient
farm mechanization by improving access to modern agricultural equipment, reducing drudgery, and
enhancing farm productivity.
Promotion of Agricultural Mechanization through training, testing, demonstration, and post-
harvest mechanization: Enhances farm productivity and efficiency by improving access to modern
agricultural technologies. It further strengthens post-harvest infrastructure for processing, storage,
value addition, and crop residue management by promoting agricultural mechanization.
Financial Assistance for the Procurement of Agricultural Machinery and Equipment: Provides
subsidy support for individual ownership of agricultural machinery through the Direct Benefit
Transfer (DBT) system. It covers 40% of the machine cost for general beneficiaries and 50% for
SC/ST farmers, small and marginal farmers, and beneficiaries in North-Eastern states. Small and
marginal farmers receive Rs 2,000 per hectare for mechanized services, including drones, through
CHCs, SHGs, and FPOs.
Establishment of Farm Machinery Banks (FMBs) for Custom Hiring: Enhances farm
mechanization through 80–90% financial support for SHGs, FPOs, and local institutions to acquire
agricultural machinery. Financial assistance for CHCs is available at 40 percent of the project cost
for projects up to ₹250 lakh, while FMBs receive 80 percent support for projects up to ₹30 lakh.
Establishment of Hi-Tech and High-Productivity Equipment Hubs: Equipped with advanced,
high-capacity machinery for crop-specific operations to improve operational efficiency and access
to high-value equipment.Promotion of Agricultural Mechanization in the North Eastern Region (NER): Provides
enhanced support in North-Eastern states through region-specific interventions, including up to
100% subsidy for small machinery and 95% support for Farm Machinery Banks.
Powering Farm Mechanization: The Financial Backbone of SMAM
Under SMAM, from 2014–15 to 2025–26, central assistance of ₹9,404.47 crore has supported the
distribution of 21.61 lakh machines to individual farmers. Additionally, it supported the establishment of
27,554 Custom Hiring Centers,646 Hi-tech Hubs, and 25,608 Farm Machinery Banks. Under
SMAM, the number of beneficiaries for individual farm machinery ownership increased from 2.07 lakh in
2020–21 to 2.32 lakh in 2024–25, reflecting an overall expansion in scheme coverage.
The scheme follows a cost-sharing arrangement between the Central and State Governments. For most
states, the funding pattern is 60:40, while for North-Eastern and Himalayan states, it is 90:10. In the case
of Union Territories, assistance is provided as 100 percent Central funding. This differentiated funding
structure facilitates broader mechanization adoption across diverse regional contexts.
Innovation in Action: How SMAM is Scaling Drone-Based Farming
The Sub-Mission on Agricultural Mechanization (SMAM) encourages the use of drones to improve
agricultural operations. With financial support of ₹52.50 crore under the scheme, the Indian Council of
Agricultural Research (ICAR) has promoted drone adoption through large-scale field demonstrations
across the country.
During 2023–24 to 2025–26, ICAR, in collaboration with State Agricultural Universities and Krishi
Vigyan Kendra (KVKs), conducted 40,928 Kisan Drone demonstrations across covering 40,918 hectares.
These demonstrations focused on the application of nutrients, fertilizers, and agro-chemicals in
accordance with prescribed standard operating procedures.
To facilitate widespread adoption, SMAM provides financial assistance for drone procurement and
demonstrations. Eligible institutions such as ICAR institutes, KVKs, and State Agricultural
Universities receive 100 percent financial support of up to ₹10 lakh per drone for these activities. Farmer-
Producer Organizations (FPOs) are eligible for grant support of up to 75 percent. In addition, agencies
utilizing drones through service models are supported with a contingency expenditure of ₹6,000 per
hectare.Further, SMAM places a strong focus on inclusivity, earmarking 30 percent of total funds for women
farmers. This provision aims to enhance their access to agricultural machinery and promote greater
participation in mechanized farming systems.
Bridging Gaps, Boosting Growth: The SMAM Effect
SMAM has emerged as a key intervention in strengthening agricultural productivity, efficiency, and
inclusiveness. By focusing on small and marginal farmers, women, SC/ST communities, and underserved
regions, the scheme has helped bridge critical gaps in mechanization through subsidies, Custom Hiring
Centre, Farm Machinery Banks, and targeted regional support. Its emphasis on training, demonstrations,
post-harvest management, and emerging technologies such as drones reflects a forward-looking approach
to modernizing agriculture. By creating institutional infrastructure, SMAM has contributed to reducing
labor drudgery, improving the timeliness of operations, and supporting higher farm productivity.
References
Ministry of Agriculture and Farmers Welfare
https://agriportal.cg.nic.in/agridept/CentralScheme/2.3%20smam%20gl.pdf
https://farmech.dac.gov.in/Content/New_Folder/Revised_SMAM_Guidelines_%282025%29_With_Cover
ing.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146927®=3&lang=2
https://agriwelfare.gov.in/sites/default/files/rkvy_inro.pdf
https://farmech.dac.gov.in/Content/New_Folder/Revised_SMAM_Guidelines_%282025%29_With_Cover
ing.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225993®=3&lang=1
https://sansad.in/getFile/loksabhaquestions/annex/184/AU1307_PlCuP7.pdf?source=pqals
https://sansad.in/getFile/loksabhaquestions/annex/187/AU2869_rYAp4R.pdf?source=pqals
https://sansad.in/getFile/loksabhaquestions/annex/184/AU4030_u5gVDd.pdf?source=pqals
https://sansad.in/getFile/loksabhaquestions/annex/187/AU2910_hr4mIN.pdf?source=pqalshttps://sansad.in/getFile/annex/270/AU1621_FVTLGW.pdf?source=pqars
Ministry of Finance
https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
Ministry of Rural Development
https://sansad.in/getFile/loksabhaquestions/annex/186/AU2540_lhHekv.pdf?source=pqals
PIB Backgrounder
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248987®=3&lang=2
Click here to see pdf
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