Farm machinery subsidy 2026 — how much you actually get.

Quick answer. Under the national Sub-Mission on Agricultural Mechanization (SMAM), revised in August 2026, the subsidy is 50% of the machine cost for small and marginal farmers, SC/ST farmers, women farmers and farmers of the North Eastern and Himalayan regions, and 40% for all other farmers — but never more than the cap for that machine. A self-propelled crop reaper is capped at ₹85,000 (50%) or ₹68,000 (40%); a 3-wheel reaper-cum-binder at ₹1,92,000 or ₹1,54,000. Caps include GST, and your state pays the subsidy against machines on its own approved list.

How the subsidy amount is worked out

The guidelines say the subsidy is limited to the percentage fixed by your state through price discovery, or the maximum per machine, whichever is lower. In practice that is the smaller of two numbers: your percentage of the machine cost, and the cap. A ₹1,40,000 self-propelled reaper at 50% gives ₹70,000, which is below the ₹85,000 cap, so you get ₹70,000. A ₹1,90,000 machine at 50% would give ₹95,000, but the cap holds it at ₹85,000. All caps include GST.

Subsidy calculator

Choose a machine row, your category and the price on your quotation. The result is indicative: your state decides the cost base and which models are eligible.

Reaper subsidy caps

Rows are the machine categories in Annexure-I of the guidelines. The 4-wheel reaper-cum-binder is marked as an expensive machine to be promoted through custom hiring centres.

Chaff cutter (kutti machine) subsidy caps

The caps depend on the engine or motor size, or the tractor, that drives the machine. A 3 HP electric chaff cutter sits exactly on the boundary between the first two rows, so ask your district agriculture office which row it falls under.

Groundnut digger and straw loader caps

The groundnut digger and straw loader rows depend on your tractor’s horsepower. The guidelines list a tractor front-mounted straw loader / grabber and a tractor trailer-fitted loader; ask your district office which row your loader falls under.

What decides whether you get it

• The manufacturer must be on your state’s approved list. States empanel manufacturers on machine quality, a valid test report from an authorised testing institution, and warranty and after-sales service.
• You can choose any empanelled maker and negotiate the final price; the subsidy then reaches you through direct bank transfer (DBT).
• Prices must be public. The guidelines say the maximum selling prices should be displayed on manufacturers’ websites and in the dealer’s shop. Our own prices are on the price list.
• Machines costing ₹1 lakh or more must be georeferenced, and self-propelled machines of that price, including self-propelled reapers and reaper-cum-binders, must carry an app-based telematics kit supplied by the manufacturer on machines made after 1 June 2023.
• States have flexibility. They can add machines and fix the cost base through price discovery, so your state’s own scheme and portal decide the details. Gujarat farmers apply through i-Khedut: see our Gujarat subsidy roadmap.

Which of our machines are covered?

Our self-propelled power reaper, differential reaper and seat versions fall under the self-propelled crop reaper row. Our 3 HP chaff cutter, groundnut digger and straw loader map to the rows above depending on motor or tractor size. Whether a particular model is on your state’s list is for the state to confirm, so ask any maker, us included, for the test report number and empanelment status in writing before you rely on subsidy. For all makers see our reaper manufacturer comparison.

Frequently asked questions

Source: SMAM Operational Guidelines 2026, revised August 2026, Annexure-I (PDF pages 25–34), and section 6.0, Ministry of Agriculture & Farmers Welfare. Checked 5 Oct 2026. The guidelines may be revised again; confirm on farmech.dac.gov.in and with your state. Questions or corrections: info@sunidhiagrotech.com.