NATIONAL FARM MECHANISATION POLICY

The Ministry of Agriculture & Farmers Welfare is implementing the Sub‑Mission on Agricultural Mechanisation (SMAM) under Rashtriya Krishi Vikas Yojana. SMAM offers 40‑50 % financial assistance for purchase of farm machinery to small and marginal farmers, 40 % support (up to Rs 250 lakh) for setting up Custom Hiring Centres, and 80 % (95 % in North‑Eastern states) for Farm Machinery Banks (up to Rs 30 lakh). The scheme also promotes modern tools such as precision agriculture, drones and women‑friendly implements, and backs testing, certification, and capacity‑building. The Crop Residue Management scheme is now integrated with SMAM on a 60:40 Centre‑State funding pattern. The government permits 100 % FDI under the automatic route for agricultural machinery manufacturing and encourages private‑sector participation and agri‑start‑up incubation.