India, being an agricultural powerhouse, sees more than 60% of its population engaged in farming. However, modern agricultural machinery like tractors often remains out of reach for small and marginal farmers due to high costs. To address this challenge, the Indian government—both Central and State—has launched multiple tractor subsidy schemes aimed at empowering farmers with financial assistance. These schemes reduce the cost burden and encourage mechanized farming for increased productivity.
Key Highlights of Govt Loan Subsidy for Tractor Purchase
• Subsidies range from 20% to 90% depending on the farmer category and scheme
• SC/ST, women, and marginal farmers receive higher subsidy rates
• Tractors of up to 60 PTO HP are eligible under various schemes
• Online application portals available for easy access
• Subsidy is provided under SMAM, RKVY, NABARD, AGR-50, and state-specific schemes
• Eligible farmers get cash transfer via DBT (Direct Benefit Transfer)
Major Tractor Subsidy Schemes in India 2025
1. Sub-Mission on Agricultural Mechanization (SMAM)
• Offers 50% to 80% subsidy for the purchase of tractors and agricultural equipment
• Prioritizes women farmers, SC/ST, and small landholders
• Includes 100% transport subsidy in some cases for delivery of tractors and implements
2. AGR-50 Scheme (Assistance to Purchase Tractors)
• For tractors up to 40 PTO HP: 25% subsidy or ₹45,000, whichever is less
• For tractors above 40 PTO HP up to 60 PTO HP: 25% subsidy or ₹60,000, whichever is less
3. Rashtriya Krishi Vikas Yojana (RKVY)
• Part of the National Agriculture Development Programme
• Offers up to 100% subsidy based on eligibility and region
4. National Food Security Mission (NFSM)
• Focuses on improving productivity using advanced agricultural tools
• Provides equipment support rather than purchasing new tractors
5. NABARD Tractor Loan Subsidy
• Offers up to 30% subsidy on tractors
• Loans facilitated through cooperative banks and rural credit institutions
6. Agricultural Equipment Grant Scheme
• Helps farmers access costly equipment at subsidized rates
• Often includes subsidies on both tractors and implements (50–70%)
Pradhan Mantri Kisan Tractor Yojana [Fact Check]
The Pradhan Mantri Kisan Tractor Yojana is often cited in media and social posts as a central government scheme offering tractor subsidies to farmers. However, no such official scheme exists under this exact name. In reality, tractor subsidies are provided under existing schemes like the Sub-Mission on Agricultural Mechanization (SMAM), Rashtriya Krishi Vikas Yojana (RKVY), and state-level programs.
These schemes do offer substantial financial aid, ranging from 20% to 90%, but the PM Kisan Tractor Yojana as a standalone, dedicated central scheme has not been officially launched. Farmers should refer to verified government portals and local agriculture departments for accurate information.
State-Specific Tractor Subsidy Schemes
• Maharashtra: Up to 40% subsidy on tractor purchases
• Tamil Nadu: Chief Minister Tractor Distribution Scheme – 4,000 farmers to receive tractors in 2025
• SC/ST farmers: Often eligible for 50% to 80% subsidy across several states
• Punjab & Haryana: Focus on paddy farmers for stubble management equipment
Benefits of Tractor Subsidy for Farmers
• Encourages mechanized farming for higher yields
• Makes expensive tractors affordable for small and marginal farmers
• Enhances farm productivity and reduces manual labor
• Government assistance is provided via direct bank transfer under the DBT Agriculture Scheme
Eligibility Criteria
• Applicant must be a land-owning farmer with valid land records
• Minimum landholding (usually 6 acres or 2.5 hectares) may be required
• SC/ST, women, small & marginal farmers get priority
• Must have an active bank account linked with Aadhaar
Documents Required
• Aadhaar Card
• PAN Card
• Voter ID
• Land Ownership Proof
• Bank Passbook & Account Details
• Caste Certificate (if applicable)
• Passport-size Photographs
Application Process for Tractor Subsidy 2025
Online Method
- Visit your state’s official agriculture department portal or national portal
Apply here: India Government Services Portal - Register using Aadhaar and mobile number
- Fill out the subsidy application form for tractor purchase
- Upload required documents
- Submit the form and note your application reference number
- Track application status online and await DBT confirmation
Offline Method
• Visit the local agriculture office or Krishi Vigyan Kendra (KVK)
• Collect the application form and fill in the required details
• Submit the form with photocopies of all required documents
• The local committee will verify and approve your request
Frequently Asked Questions (FAQs)
Q: What is the maximum subsidy available on tractors in 2025?
Subsidies can go up to 90% depending on the farmer’s category and state policy.
Q: Are tractor implements also covered under subsidy schemes?
Yes, many schemes offer 50%–70% subsidies on implements along with tractors.
Q: Who is eligible for the highest subsidy?
SC/ST, women, small and marginal farmers are prioritized with higher subsidies.
Q: Can I apply online for a tractor subsidy?
Yes, several states and central schemes have online application portals for ease of access.
Q: How is the subsidy amount transferred?
The subsidy amount is directly credited to the farmer’s bank account via DBT.
Sources & References
• Official Government Portal
• Tractor Junction – Latest Updates on Subsidies
• Ministry of Agriculture & Farmers Welfare
• NABARD Official Website
• State Agriculture Department Portals
Tractor subsidies in India are a critical support system for farmers aiming to modernize their agricultural practices. By utilizing these government schemes in 2025, eligible farmers can significantly reduce their equipment costs and boost farm productivity. Stay informed and take advantage of these financial aids by applying through online portals or local agricultural offices.
