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Machine subsidy: from application to money

Who gets SMAM, how much and how — and the mistakes that get a subsidy stuck.

How much

  • Small and marginal, women, SC/ST and North-East/Himalayan farmers: 50%
  • All other farmers: 40%
  • Custom hiring centres: 40% of project cost (projects up to ₹2.5 crore)
  • Farm machinery banks: 80%, up to ₹24 lakh
  • Every machine has a ceiling — you get the lower of the percentage and the ceiling

Steps

  • Register as a farmer on your state agriculture portal (Aadhaar, bank account, land records)
  • When the window opens, apply or book a token for the machine
  • If applications exceed the target, an online lottery
  • Once selected, buy from a listed dealer within the deadline and upload the bill and photos
  • After an officer verifies it, the money goes straight to your bank (DBT)

Mistakes that block the subsidy

  • Buying before you are selected
  • Buying from a dealer not on the state list
  • A machine without a valid test report
  • A bank account not linked to Aadhaar
  • A bill without the machine’s serial number

Next guide: Checklist before buying a used tractor

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