Sub-Mission on Agricultural Mechanization

About Sub-Mission on Agricultural Mechanization

• The Sub-Mission on Agricultural Mechanization (SMAM) was launched to promote farm mechanization in India.
• Scheme type: It is a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana (RKVY). 
• Duration: It was launched in 2014–15.
• Nodal Ministry: The nodal ministry for the scheme is Ministry of Agriculture & Farmers Welfare.
• Aim: It aims to “reach the unreached” by extending the benefits of mechanization to underserved sections.
• Beneficiary targeted: 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.
• Funding pattern:
  • 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. 
• Focus: It 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: Supports training, testing, demonstrations, and post-harvest mechanization to improve farm productivity, processing, storage, value addition, and crop residue management.
  • Financial Assistance for Agricultural Machinery: Provides subsidies through DBT—40% for general farmers and 50% for SC/ST, small and marginal farmers, and beneficiaries in North-Eastern states.
    • Small and marginal farmers also receive ₹2,000 per hectare for mechanized services, including drones, through CHCs, SHGs, and FPOs.
  • Farm Machinery Banks (FMBs) and Custom Hiring Centres (CHCs): Supports SHGs, FPOs, and local institutions with 80–90% assistance for FMBs (up to ₹30 lakh) and 40% assistance for CHCs (up to ₹250 lakh) to improve access to farm machinery.
  • Hi-Tech Equipment Hubs: Establishes centres with advanced, high-capacity machinery for crop-specific operations and improved access to modern equipment.
  • Mechanization in the North Eastern Region: Provides region-specific support, including up to 100% subsidy for small machinery and 95% assistance for Farm Machinery Banks.
• Features:
  • 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.
  • It also undertakes awareness generation through demonstrations and capacity-building initiatives.
  • Its crucial focus is 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.
  • It also supports the performance testing and certification of agricultural machinery.
  • Targeted Information, Education, and Communication (IEC) activities are undertaken to enhance adoption among stakeholders.
• Scheme coverage: The number of beneficiaries for individual farm machinery ownership increased from 2.07 lakh in 2020–21 to 2.32 lakh in 2024–25.
• Impact: 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.