SMAM – Sub Mission on Agricultural Mechanization

SMAM-Subsidy on Agriculture Machinery - krishicenter

Sub Mission on Agricultural Mechanization (SMAM) scheme is being implemented w.e.f April, 2014 which aims at catalyzing an accelerated but inclusive growth of agricultural mechanization in India with the objectives of Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low, promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership, creating hubs for hi-tech and high value farm equipments, creating awareness among stakeholders through demonstration and capacity building activities and Ensuring performance testing and certification at designated testing centers located all over the country. Till date Rs. 6748.78 Crore have been released to State Governments, distributed more than 15,75,719 agricultural machinery & equipment’s including Tractors, Power Tillers, Self-Propelled Machineries and Plant Protection Equipment and established 23472 nos of Custom Hiring Centres, 504 nos of Hi-Tech Hubs and 20597 nos. of Farm Machinery Banks.


What is SMAM — Background & Purpose

  • SMAM was launched in 2014-15 by the Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India.
  • It seeks to address structural constraints in Indian agriculture — particularly small and fragmented landholdings (a large proportion of holdings in India are marginal or small) and low farm-power availability per unit cultivable area. (Agri Welfare Department)
  • The main aim: promote adoption of appropriate, cost-effective, and environmentally friendly mechanization technologies across the country — making modern machinery accessible and affordable, especially for small & marginal farmers, women, SC/ST communities, and regions with low mechanization.

Objectives & Strategy of SMAM

According to the latest (2025) operational guidelines for SMAM, the core objectives and strategies remain essentially the same as originally envisaged. (farmech.dac.gov.in)

Key objectives:

  1. Expand mechanization reach — ensuring farm mechanization reaches small & marginal farmers, disadvantaged groups (SC/ST, women), and regions where farm-power availability is low. (farmech.dac.gov.in)
  2. Promote use of Custom Hiring Services (CHCs) — to overcome the economics-of-scale barrier due to small and fragmented landholdings; instead of expecting each small farmer to own expensive machines, make machines available on rental/hire basis. (farmech.dac.gov.in)
  3. Capacity building, awareness, testing & certification — including training, demonstration, performance testing of machinery at designated testing centres, and promoting informed adoption among stakeholders. (farmech.dac.gov.in)
  4. Support entire value chain — including post-harvest management & value addition — not just primary operations (tilling, sowing, harvesting) but also post-harvest, processing, crop by-product management. (Agri Welfare Department)

Strategy highlights: financial assistance (subsidies) for machinery purchase, establishing CHCs and village-level Machinery Banks, supporting hi-tech equipment hubs, promoting region/crop-specific mechanization, and integrating mechanization components under broader schemes (e.g. under Rashtriya Krishi Vikas Yojana — RKVY) when preparing Annual Action Plans. (farmech.dac.gov.in)

Promotion of Drone Technology under SMAM

Looking into the unique advantages of Drone technologies in agriculture, a Standard Crop Specific Operating Procedures (SOPs) released the for use of drones in pesticide and nutrient application in public domain on 20.04.2023, which provides concise instructions for effective and safe operations of drones.

From within the funds of SMAM, so far an amount of Rs.

138.82 crores have been released towards Kisan drone promotion, which include purchase of 317 Drones for their demonstration in 79070 hectares of land and supply of 461 drones to the farmers on subsidy and also supply of 1595 drones to the CHCs for providing drone services to the farmers on rental basis.


Key Components of SMAM

The scheme comprises multiple inter-linked components to cover different aspects of agricultural mechanization and allied needs. (Agri Welfare Department)

  • Financial assistance / subsidies for purchase of agricultural machinery & equipment — for individual farmers (especially small/marginal, SC/ST, women, etc.) to own machines. (farmech.dac.gov.in)
  • Custom Hiring Centres (CHCs) — enabling farmers to rent machinery rather than owning, which is critical for small landholders. (farmech.dac.gov.in)
  • Village-level Farm Machinery Banks (FMBs) / Farm Machinery Banks (FMB) — to provide localized access to machinery for smallholders. (diragri.assam.gov.in)
  • Hi-tech / High-value Equipment Hubs / High-tech hubs for custom hiring — especially for crop-specific machinery, post-harvest machines, value addition, processing, etc.
  • Testing, certification, training & demonstration — via designated testing institutes/centres (e.g. four Farm Machinery Training & Testing Institutes — FMTTIs, ICAR institutions, State Agri Universities) to ensure quality, reliability and to build capacity among users. (farmech.dac.gov.in)
  • Promotion of new technologies, including drone-based agriculture — mechanized operations, precision farming, and post-harvest management. (Press Information Bureau)

Recent (2024–2025) Updates & Revisions to SMAM (2025 Position)

  • In May 2025, the government issued revised operational guidelines for SMAM (under PM-RKVY), underscoring continuing commitment to mechanization. (farmech.dac.gov.in)
  • The revised guidelines reaffirm objectives: financial assistance, CHCs, capacities building, testing & certification, promotion of mechanization especially among small/marginal farmers, and include updated provisions for post-harvest mechanization, drone adoption, and grassroots innovations. (farmech.dac.gov.in)
  • For 2025-26, in one state’s write-up, the budget allocation under SMAM is stated as ₹180.91 crore. (agri.odisha.gov.in)
  • A major recent thrust has been to integrate drone technology under SMAM: purchase, demonstrations, and establishment of Custom Hiring Centres for drones. Drones are considered under both centrally-sponsored components and central-sector programmes; subsidies/assistance for drone purchase (individual, CHCs, FPOs) and for demonstrations have been announced. (Press Information Bureau)
  • Complementarity with broader digital agriculture drive: according to a 2025 press release, the government has approved a separate Digital Agriculture Mission (Sept 2024) — envisaging a “digital agriculture ecosystem” including decision-support systems, soil maps, digital public infrastructure — which is expected to synergize with mechanization under SMAM. (Press Information Bureau)

Achievements & Impact So Far

  • SMAM has expanded mechanization beyond traditional high-mechanization states (Punjab, Haryana, etc.) to low-mechanization regions (including north-eastern and hilly areas), small and marginal farmers, SC/ST and women farmers. (diragri.assam.gov.in)
  • By enabling Custom Hiring Centres and Farm Machinery Banks, SMAM offers a viable alternative to expensive individual ownership, which is often unfeasible for small holders. (farmech.dac.gov.in)
  • The inclusion of post-harvest machinery, value-addition tools, and more recently drone-based technologies has broadened the scope of mechanization beyond mere land-preparation or harvesting — helping in processing, storage, crop residue management, precision agriculture. (agrimachinery.nic.in)
  • SMAM’s emphasis on training, testing and demonstration helps ensure that machines are used effectively and sustainably, increasing the likelihood of adoption and long-term benefits. (farmech.dac.gov.in)

Analyses cited in media have also noted that despite mechanization levels of ~ 40–45% in India (as per pre-SMAM baseline), many regions remain under-mechanized, and SMAM is critical to push mechanization nationwide. (Drishti IAS)


Key Challenges & Limitations (Still Relevant in 2025)

Despite progress, several structural and implementation challenges persist — some of which were flagged in scheme documents, commentaries, and reports:

  • Small and fragmented land holdings: This continues to be a hurdle. In many parts of India, average landholding size is very small, which makes individual ownership of machinery uneconomical. This structural issue limits adoption despite subsidies. (Agri Welfare Department)
  • Regional disparities: Mechanization remains uneven across states and regions. While some states have higher penetration, many (especially in Eastern, North-Eastern, hilly or tribal areas) still have low farm-power availability and limited access to machines. (The Times of India)
  • Cost and maintenance of machinery: Even with subsidies, the cost of high-value machinery and maintenance, repairs, spare parts — and the knowledge/skill to operate them — can be barriers for many smallholders. The need for testing, certification, training, demonstrations points to these constraints. (farmech.dac.gov.in)
  • Awareness and capacity building gap: Mechanization as a technology often requires training — for safe and efficient usage. While SMAM includes training and demonstration components, ensuring widespread awareness and adoption — especially among small, marginal, illiterate or resource-poor farmers — remains a challenge. (farmech.dac.gov.in)
  • Sustainability of Custom Hiring Centres (CHCs) & Machinery Banks: For CHCs to function — there must be demand, logistical support, management (especially in remote or low-farm-power regions), and maintenance infrastructure. Ensuring long-term viability of these CHCs and rental services is often difficult. (Agri Welfare Department)
  • Adapting to diverse agro-climatic conditions: India’s agro-ecological diversity — different crops, soils, cropping patterns — means a “one-size-fits-all” mechanization solution doesn’t work. Customized, crop- and region-specific machinery is needed, adding complexity to policy design and implementation. (The Times of India)

Where SMAM Stands Now (2025–26) — Outlook and Key Trends

As of 2025, SMAM continues to be a central pillar of the government’s efforts to modernize agriculture in India. The issuance of revised operational guidelines in May 2025 shows renewed institutional commitment.

Key features shaping the current status and future trajectory:

  • Expanded scope — including farm-drones and digital agriculture integration: With drone technologies explicitly catered under SMAM (purchase subsidies, CHCs, drone-related demonstration, remote spraying, etc.), the scheme is evolving to encompass precision agriculture and modern technological tools. (Press Information Bureau)
  • Synergy with wider digital/tech-led agriculture push: The recently approved Digital Agriculture Mission (2024) seeks to build digital agriculture infrastructure (soil maps, decision-support systems, etc.). SMAM mechanization + digital agriculture together could significantly increase productivity, efficiency and sustainability. (Press Information Bureau)
  • Focus on inclusivity — small/marginal, women, SC/ST, underserved regions: The scheme continues to prioritize disadvantaged groups, ensuring that mechanization benefits are not limited only to big farmers. (farmech.dac.gov.in)
  • Increased public investment: As noted, 2025-26 allocations (e.g., ₹180.91 crore in one state) show fresh funding commitment. (agri.odisha.gov.in)
  • Ongoing challenge of scaling & sustainability: For real gains — especially among small & marginal farmers — the success of SMAM will depend not only on subsidies but also on robust implementation: functional CHCs, maintenance infrastructure, extension support, training, outreach, and continuous adaptation to region-specific needs.

In short: SMAM remains highly relevant in 2025–26. Its evolving design (with drones, digital integration, focus on smallholders) reflects an attempt to deal with both traditional and emerging challenges in Indian agriculture. But structural obstacles (land fragmentation, cost, maintenance, uneven adoption) mean that much remains to be done before mechanization reaches a critical mass across all regions.


a state / region–wise tabular snapshot of SMAM & mechanization status (2025-26), with a strong focus on Tamil Nadu & South India.

Note: Mechanization levels are qualitative (High / Medium / Low) based on literature that shows India overall at ~40–45% mechanization, with north-western states much higher and north-eastern states very low. myhub.technicalhub.io
Exact state-wise numbers are not officially published in one consolidated source, so this table is designed for DPRs, articles and PPTs as an analytical overview, not as a statistical annex.

Here’s a state / region–wise tabular snapshot of SMAM & mechanization status (2025-26), with a strong focus on Tamil Nadu & South India.

Note: Mechanization levels are qualitative (High / Medium / Low) based on literature that shows India overall at ~40–45% mechanization, with north-western states much higher and north-eastern states very low. (myhub.technicalhub.io)
Exact state-wise numbers are not officially published in one consolidated source, so this table is designed for DPRs, articles and PPTs as an analytical overview, not as a statistical annex.


1. Regional Overview of Mechanization & SMAM Focus (2025-26)

Region / GroupTypical Mechanization Level*SMAM Focus (Broad)2024–25 / 2025–26 HighlightsKey Gaps & Opportunities
North-West: Punjab, Haryana, Western UPHigh – dense tractor & harvester use, high farm power; near-saturation in many pockets (myhub.technicalhub.io)Shift from basic mechanization to crop residue management, precision & conservation agriculture, straw management units, zero-till seedersStrong push on stubble management machinery, support for balers, happy seeders etc. under SMAM & state schemes; simplified subsidy processes in UP for residue management machinery (The Times of India)Over-mechanization in some pockets, rising cost of ownership & idle capacity, need for diversification to high-value crops and custom hiring systems for small farmers, environmental regulation of residue burning
Indo-Gangetic Plains: Eastern UP, Bihar, West BengalLow–Medium – improving but still below national average mechanization (myhub.technicalhub.io)CHCs, small machinery, rice–wheat equipment, promotion of paddy transplanters, threshers, reapersSMAM plus state schemes focusing on small/compact machinery, paddy transplanters and harvesters; e-lottery and DBT mechanisms in some statesLand fragmentation, low capital, weak CHC viability in some areas, need for more training, women-friendly tools, and linkages with credit & FPOs
Western India: Gujarat, Maharashtra, Rajasthan, GoaMedium–High, particularly in irrigated beltsMulti-crop mechanization, micro-irrigation compatible implements, cotton & pulses machinery, residue managementIntegration of SMAM with PM-KUSUM, micro-irrigation and RKVY; support to entrepreneurial CHCs and hi-tech hubsRainfed/drought-prone areas still under-mechanized; scope for solar-powered machinery, drones, and robust CHC models
Southern India: TN, AP, Telangana, Karnataka, KeralaMedium–High overall, with strong state support programmes and IT integrationCHCs + hi-tech hubs, paddy & horticulture mechanization, plantation crops machinery, dronesAP relaunched SMAM-linked mechanisation drive (2024-25) with front-end 50% subsidy, benefiting 25k+ farmers in 45 days; heavy focus on rainfed & tribal regions (The Times of India). Tamil Nadu running a large SMAM based mechanisation programme across almost all districts (AED)Need more small / light machinery for smallholdings & hill tracts, financing & maintenance for high-value machines, and more post-harvest / value-addition equipment at village level
Central India: MP, Chhattisgarh, JharkhandMedium, but uneven across districtsRice-based & pulses mechanization, small tractors, power tillers, CHCs for tribal & forest fringe areasSMAM funds commonly used for CHCs and individual subsidies; emphasis on tribal districts and rice mechanizationLow awareness in some remote blocks, spare parts & repair ecosystem weak, and low credit penetration among tribal farmers
Eastern & Coastal: OdishaMedium and rising fast – Odisha has explicitly targeted higher farm power levelsStrong state-SMAM convergence, large subsidy outlay for farm machineryOdisha farm power now ~2.61 kW/ha (2024-25) with plan to reach 3.5 kW/ha by 2036; state has earmarked ₹540 crore subsidy budget for 2024-25 and machinery worth ~₹1200 crore (Ommcom News)Scope for scaling post-harvest, fisheries & coastal mechanization, plus more FPO-managed CHCs in cyclone-prone districts
North-East & Hilly: NE states, J&K, Uttarakhand, HimachalLow–Very Low, but improving; terrain & small holdings limit large machines (myhub.technicalhub.io)Mini / power tillers, light equipment, hill-friendly and gender-friendly tools, small CHCsUnder SMAM, NE & hill states enjoy higher subsidy norms; promotion of small power tillers, weeders, and portable machinesNeed for robust hill-specific machinery designs, strong local training centres, better road/transport access for machines, and service-based models rather than ownership

*Mechanization level is relative to Indian average (~40–45%); “High” = well above, “Low” = well below.


2. Key State-wise SMAM & Mechanization Snapshot (2025-26)

You can directly lift this table into Word/PPT/DPR and tweak text as needed.

2.1 South India (Detailed – including Tamil Nadu)

StateApprox. Mechanization Level (Qualitative)Main SMAM Focus Areas2024–25 / 2025–26 Notable PointsGaps & Opportunities
Tamil NaduMedium–High in irrigated plains; moderate in rainfed & hill tractsIndividual subsidies + CHCs (block & village level); paddy transplanters, power tillers/weeders, rotavators, laser levellers, post-harvest & value-addition equipment (AED)SMAM-linked Sub-Mission on Agricultural Mechanisation is implemented in all districts except Chennai; CHCs at block & village level; focus on paddy, sugarcane, coconut and horticulture machinery (AED)Strengthen village-level CHCs in rainfed & dry districts, more small paddy implements for small/marginal farmers, women-friendly machinery, and expansion of solar dryers & processing units
Andhra PradeshMedium–High and risingStrong emphasis on front-end subsidy (50%), wide equipment basket from land preparation to harvesting, focus on rainfed & tribal regions (The Times of India)SMAM-linked mechanisation drive relaunched after 5-year gap; in 45 days benefitted 25,000+ farmers with ₹61 crore subsidy; implementation via Karshak Portal – FM App for transparent DBT (The Times of India)Good digital systems; need to monitor CHC viability, expand custom hiring in tribal hill regions, and integrate drones & precision implements
TelanganaMedium–High in irrigated & cotton beltsCotton & paddy mechanization, emphasis on harvesters, seeders, sprayers, CHCsUses SMAM funds + state support for CHCs & individual subsidies; mechanization support linked with Mission Bhagiratha & irrigation expansionHigh potential for drone-based spraying, cotton picking tech, and residue management around major irrigation projects
KarnatakaMedium–High, but unevenFocus on paddy, millets, sugarcane, horticulture machinery, plus small machinery for dryland areasSMAM + state schemes support CHCs, high-tech hubs and millet mechanization; use of agri-startups for service model in some districtsNeed to expand millet-specific machinery, IT-enabled booking platforms for CHCs, and promote climate-smart mechanization in semi-arid belts
KeralaMedium, higher in paddy pockets, lower in small plantations & homesteadsLabour-saving machinery, paddy transplanters, reapers, coconut & plantation mechanization; small, compact machines suited to fragmented holdingsHeavy labour scarcity makes SMAM support crucial; integration with cooperative sectors and local bodiesStrong scope for cooperative/SHG-run CHCs, more focus on coconut & rubber mechanization, and small battery-powered tools for homestead crops

2.2 Selected Other States (for All-India Context)

StateApprox. Mechanization LevelMain SMAM Focus2024–25 / 2025-26 HighlightsGaps / Opportunities
PunjabVery HighResidue management, precision machinery, diversification toolsStrong push on straw management, zero-till, and laser levelling under SMAM & state schemesDiversification away from paddy; promote horticulture & pulses machinery
HaryanaVery HighSimilar to Punjab; conservation agriculture machinery, high-HP tractors, balersExtensive CHCs, focus on straw management; high farm-power densityPromote energy-efficient & climate-smart machinery, and service-based models
Uttar PradeshHigh (West) / Medium (East)Crop residue management, small machinery for eastern region, CHCsSimplified subsidy process for crop residue management machinery via online booking; small/marginal farmers targeted through capped subsidies (The Times of India)Bridge regional gap between west & east; focus on small combines, reapers & paddy transplanters in eastern UP
BiharLow–MediumSmall machinery & CHCs, paddy & maize mechanizationSMAM used mainly for small equipment & CHCs targeting marginal farmersHuge scope for service-based mechanization, FPO-led CHCs, and women-oriented machinery
West BengalLow–MediumPaddy & jute mechanization, small equipment loans, CHCsMechanization still constrained by small holdings and high water-tables in many areasNeed stronger push for mini machinery & CHC networks, and mechanised jute retting/processing
OdishaMedium and rapidly risingComprehensive farm mechanization with strong subsidy supportFarm power 2.61 kW/ha (2024-25) with long-term roadmap; large budget for DBT farm mechanization (₹540 cr subsidy) (Ommcom News)Scale coastal & paddy mechanization, expand CHCs in tribal blocks, focus on harvest & post-harvest losses
Madhya PradeshMediumWheat, soybean & pulses mechanization, CHCsSMAM used mainly for tractors, seed-cum-fertilizer drills, harvesters, threshersExpand pulses and oilseed mechanization, integrate with water-saving & precision technologies
MaharashtraMedium–High (esp. irrigated belts)Cotton, sugarcane & horticulture mechanization; CHCs and hi-tech hubsFocus on sugarcane harvesters, cotton pickers, and orchard equipment through combination of SMAM & state fundsNeed sustainable models for high-cost harvesters, shared ownership, and strong repair networks
GujaratMedium–HighGroundnut, cotton, horticulture, micro-irrigation-compatible toolsSMAM acts along with state support for mechanized sowing, harvesting & drip-friendly machineryScope for solar & electric machinery, drones for fertilizer/pesticide application in large irrigated tracts
RajasthanMediumDryland & coarse cereal mechanization, small equipment, CHCsFocus on implements for arid conditions; support to small tractors & seed drillsPromote rainfed-suitable machinery, residue management in irrigated pockets, and solar-powered pumps & tools
Assam & NE StatesLowPower tillers, weeders, mini machinery, hill-friendly toolsHigher subsidy norms under SMAM; focus on light machinery and small CHCsBig opportunity for terrain-specific designs, local manufacturing and intensive training / demonstration
Himachal & UttarakhandLow–MediumOrchard & hill mechanization (sprayers, pruners), small tillers; CHCs in hill blocksSMAM supports orchard tools and small machinery suited to terraced fieldsStrengthen CHCs & maintenance services and customize machinery for apple / horticulture belts

3. How You Can Use This Table

  • For DPRs:
    • Turn each row into a “Current Status & Gaps” section;
    • Add numbers from state agriculture departments (CHCs, machines subsidised) where you have them.
  • For Presentations:
    • Use one regional slide + one South India slide + one “Key States” slide.
    • Add icons (tractor, drone, CHC) in place of some text for visual clarity.
  • For Articles / Reports:
    • Use the tables as Annexure–I (Regional) and Annexure–II (State-wise) and keep your main body more narrative.

Note: This data is only for articles and PPTs as an analytical overview, not as a statistical annex.


Why SMAM Matters — Strategic Importance for Indian Agriculture

  • Addressing labour challenges & farm-power shortage: With labour shortages, rising wages, and rural–urban migration, mechanization reduces dependence on manual labour and enables timely farming operations — critical for yield and quality.
  • Improving productivity, efficiency & profitability: Mechanized sowing, harvesting, post-harvest handling, and processing can reduce losses, increase yield per unit time/area, improve crop quality and value, and lower drudgery.
  • Enabling inclusive growth for small/marginal farmers: Through subsidies and hiring/rental models (CHCs/FMBs), SMAM allows smallholders to benefit from mechanization without heavy capital burden — contributing to equity in agricultural modernization.
  • Facilitating modernization and adoption of new technologies: With drones and digital agriculture integration, SMAM helps usher in precision farming, resource-efficient agriculture (water, fertilizer), environment-friendly practices, and better supply-chain integration (post-harvest, processing, storage).
  • Long-term sustainability and resilience: Mechanization — especially when combined with sustainable practices — can help Indian agriculture become more resilient to labour constraints, crop failures, climate variability, and market pressures.

What Needs to Be Strengthened / Monitored (Going Forward)

To maximize SMAM’s impact over the next decade, the following areas need attention:

  1. Better coverage of low-mechanization regions — focusing on eastern, tribal, hilly, rainfed regions where mechanization is still minimal.
  2. Strengthening Custom Hiring Centres & Machinery Banks — ensuring their viability, maintenance, spare part availability, user training, fair rental pricing, and management for long-term sustainability.
  3. Awareness, training, demonstration, and extension support — so farmers not only get machines but also know how to use, maintain, and integrate them successfully into their cropping cycles; especially important for women, smallholders, marginalised.
  4. Customization of machines for region- and crop-specific needs — because one size doesn’t fit all; need more research, locally suited solutions (e.g. small-scale, lightweight implements for small/paddy-dominant fields, terrace agriculture, etc.).
  5. Maintenance of quality and safety standards — with performance testing, certification, and regulation to avoid sub-standard or unsafe machinery — especially as more mechanization and drone-based operations expand.
  6. Monitoring & evaluation, impact assessment & data-driven planning — better data on uptake, usage, farm-level outcomes (productivity, cost savings, livelihoods), and feedback loops to refine policies.

Conclusion: SMAM in 2025–26 — Still a Cornerstone, Evolving, But with Work Ahead

The Sub-Mission on Agricultural Mechanization continues to be a cornerstone of India’s agrarian modernization strategy. The 2025 updated guidelines, fresh budget allocations, and inclusion of new technologies (like drones) reflect its evolving relevance — particularly as Indian agriculture grapples with labour shortages, small land-holdings, climate challenges, and the need for higher productivity.

However, achieving widespread mechanization — especially inclusive, sustainable mechanization for small and marginal farmers — remains a long-term challenge. Success will depend heavily on effective ground-level implementation, institutional capacity, maintenance infrastructure, training, and region-specific customization.