SMAM Scheme: Spreading the Usage of Farm Machinery in India

Table of Contents

• What is Sub Mission on Agricultural Mechanisation?
• What are the Objectives of SMAM Scheme?
• What are the Strategies of SMAM Scheme?
• What are the Components of SMAM Scheme?
• Financial Assistance under SMAM
• Who are Eligible to Avail Benefits Under SMAM Scheme?
• How to Apply Under SMAM Scheme?
• Which Documents are Required under SMAM?
• What is the Present Status of SMAM in India?

What is Sub Mission on Agricultural Mechanisation?

Sub Mission on Agricultural Mechanisation (SMAM) is a government scheme that seeks to promote the use of farm machinery by enabling farmers to purchase at subsidized rates or at lower costs. It provides a subsidy of up to 40 – 50% on the purchase of farm machinery. The scheme is a part of the National Mission on Agriculture Extension and Technology (NMAET).

What are the Objectives of SMAM Scheme?

• Expanding the reach of farm mechanisation to the areas where farm power availability is low and to small & marginal farmers (SMF).
• To offset the unfavourable economies of scale due to small landholdings and high individual ownership costs, the scheme aims to establish Custom Hiring Centres (CHCs).
• Create hubs for high-value and hi-tech agricultural equipment.
• Ensure the performance testing and certification of designated testing centres across the country.
• Create awareness among stakeholders through capacity-building activities and demonstrations.

What are the Strategies of SMAM Scheme?

• Conduct performance testing of different agricultural equipment at four Farm Machinery Training & Testing Institute (FMTTIs), designated institutions under the Indian Council of Agricultural Research (ICAR), and State Agricultural Universities (SAUs).
• Conduct on-field and off-field training and demonstrations to promote farm mechanisation among stakeholders.
• Establish CHCs of location and crop-specific agricultural machinery and equipment.
• Enable farmers to procure farm machinery and implements by providing financial assistance.
• Enable SMFs to hire agricultural machinery and implements in low-mechanisation regions by providing financial assistance.

What are the Components of SMAM Scheme?

• Promotion and strengthening of farm mechanisation through testing, training, and demonstration.
• Training, demonstration, and distribution of post-harvest technology & management (PHTM).
• Financial assistance for the procurement of farm machinery and implements.
• Establish agricultural machinery banks for custom hiring.
• Establish a hi-tech, high-productive farm equipment hub for custom hiring.
• Promote farm mechanisation in selected villages.
• Financial assistance for the promotion of mechanised operations per hectare carried out through CHCs.
• Promotion of agricultural machinery and implements in the North-Eastern region.

Financial Assistance under SMAM

Under the SMAM, the allocation for SC/ST farmers is proportionate to their population in the district; the allocation for women beneficiaries is 30%, and at least 50% for SMFs.

Further, the subsidy component or financial assistance under the scheme for different components of the scheme is as follows:

• SC, ST, SMFs, Women & North-east Farmers: 50% subsidy on the cost of agricultural equipment, subject to a maximum ceiling.
• Others: 40% subsidy on farm equipment costs, subject to a maximum ceiling.
• Post-Harvest Technology (PHTs): 50% financial assistance subject to a ceiling of Rs. 1.25 lakhs per machine/ technology. An additional 10% assistance up to a limit of Rs. 1.50 lakhs to SMFs, SC/ST farmers, women, and North-east farmers.
• Custom Hiring Centres (CHCs): Financial assistance of 40–50% will be provided to rural entrepreneurs and progressive farmers.
• Farm Machinery Banks (FMBs): Financial assistance of 80% of the project cost for setting up Farm Machinery Banks in selected villages.
• Drone Technology: Financial assistance of up to 100% of the cost of a drone up to a maximum of Rs. 10 lakhs per drone.

Who are Eligible to Avail Benefits Under SMAM Scheme?

• Small & Marginal Farmers residing in low farm power region.
• Individual Farmers, Self-Help Groups (SHGs), User Groups, Cooperative Societies and Farmer Producers Organisation (FPOs).
• Women farmers on priority.
• Schedule Caste/ Schedule Tribes farmers, and North-east farmers.
• Rural entrepreneurs and progressive farmers.
• Farmers who have not taken any other subsidy from other central scheme earlier.

How to Apply Under SMAM Scheme?

Following are the steps through which you can fill the application form under SMAM through Direct Benefit Transfer (DBT) mode:

Step 1: Visit the argi machinery website of the Department of Agriculture & Farmer Welfare.

Step 2: Click the Registration tab on top ribbon of the website and select the appropriate category that represents you.

Step 3: Register through either your Aadhar Number, Mobile Number or Name as per Aadhar on the registration portal.

Step 4: Fill the application form for purchasing of implement.

Step 5: Click on the submit button to complete the application process.

Which Documents are Required under SMAM?

• Aadhar card for identifying the beneficiary.
• Farmers’ passport size photo.
• At the time of adding land details, need to upload Record of Right (RoR) of land.
• Bank pass book’s first page copy which carries the details of beneficiary.
• For ID proof, copy of any one document out of Aadhar Card, Voter ID Card, PAN Card, Driving License or Passport.
• Caste Category Certificate copy, if you are SC, ST, or OBC.

What is the Present Status of SMAM in India?

As of July 2025, according to the Ministry of Agriculture & Farmers Welfare, financial assistance of 40-50% of the cost of machinery, depending on the category of farmers, is provided for the purchase of agricultural machinery.

On a rental basis, to provide machines and equipment to farmers, financial assistance for the establishment of CHCs of the project cost up to Rs. 250 lakhs are provided @ 40% of the project cost and financial assistance for establishments of Farm Machinery Banks (FMBs) of the project cost up to Rs. 30 Lakhs is provided @ 80% of the project cost. In the northeastern regions, the rate of financial assistance for establishing FMBs is 95% of the project cost.