Backgrounder: Sub-Mission on Agricultural Mechanization
The Sub-Mission on Agricultural Mechanization (SMAM), launched in 2014-15 under RKVY, helps small and marginal farmers, women and disadvantaged groups hire or buy machines. From 2014-15 to 2025-26 it has given ₹9,404.47 crore in central assistance, distributed 21.61 lakh machines, and supported 27,554 Custom Hiring Centres. North-Eastern States get higher subsidy rates.
- Scheme
- SMAM; Centrally Sponsored under RKVY; launched 2014-15
- Spend
- ₹9,404.47 crore central assistance (2014-15 to 2025-26)
- Machines
- 21.61 lakh to individual farmers
- Institutions
- 27,554 CHCs; 646 Hi-tech Hubs; 25,608 Farm Machinery Banks
- Drones
- 40,928 demonstrations on 40,918 ha; ₹52.5 crore support
- Women
- 30% of funds earmarked
The Sub-Mission on Agricultural Mechanization: what happened?
Most Indian farms are small. Owning a tractor or harvester is hard. SMAM pushes Custom Hiring Centres and subsidies so smallholders can rent machines on time. It also funds drones and gives the North-East higher support.
- Individual machine subsidy via DBT: 40% of cost for general beneficiaries; 50% for SC/ST, small and marginal farmers, and North-Eastern beneficiaries.
- CHCs: financial assistance at 40 percent of project cost for projects up to ₹250 lakh.
- Farm Machinery Banks: 80 percent support for projects up to ₹30 lakh; SHGs/FPOs/local institutions can get 80 to 90 percent support to acquire machinery.
- NER: up to 100% subsidy for small machinery and 95% for Farm Machinery Banks.
- Funding pattern: 60:40 Centre:State generally; 90:10 for North-Eastern and Himalayan States; 100% Central for UTs.
- Small and marginal farmers get ₹2,000 per hectare for mechanised services (including drones) through CHCs, SHGs and FPOs.
- Drone demos (2023-24 to 2025-26) with ICAR, SAUs and KVKs; institutions can get 100% support up to ₹10 lakh per drone; FPOs up to 75%; service model contingency ₹6,000 per hectare.
- Individual ownership beneficiaries rose from 2.07 lakh (2020-21) to 2.32 lakh (2024-25).
How does SMAM sit under RKVY?
- RKVY began in 2007 to raise State public investment in agriculture with flexibility.
- In 2017-18 it was restructured as RKVY-RAFTAAR with more pre- and post-harvest focus.
- SMAM is the mechanisation sub-mission inside that umbrella.
What is the funding design?
- Centrally Sponsored Scheme under RKVY.
- Centre:State 60:40 for most States; 90:10 for North-Eastern and Himalayan States; 100% Central for Union Territories.
What has SMAM delivered?
| Indicator | Figure |
|---|---|
| Central assistance | ₹9,404.47 crore (2014-15 to 2025-26) |
| Machines to individuals | 21.61 lakh |
| Custom Hiring Centres | 27,554 |
| Hi-tech Hubs | 646 |
| Farm Machinery Banks | 25,608 |
| Drone demonstrations | 40,928 on 40,918 ha |
| Drone financial support | ₹52.5 crore |
| Women fund share | 30% earmarked |
Why does the Sub-Mission on Agricultural Mechanization matter?
| Angle | What to note |
|---|---|
| Inclusion | Targets smallholders, women, SC/ST and NER. |
| Rental model | CHCs and FMBs cut capital barriers. |
| Precision | Drone demos and institutional support spread new tools. |
| Federal design | Higher NER/Himalayan Centre share. |
What are the challenges in the Sub-Mission on Agricultural Mechanization?
- Small landholdings still limit owned-machine economics.
- CHC viability depends on local demand and maintenance.
- Drone uptake needs trained operators and clear SOPs.
- State co-funding capacity varies outside 90:10 regions.
What should be done next on the Sub-Mission on Agricultural Mechanization?
- Keep CHCs and FMBs financially viable after subsidy.
- Scale drone services with safety and SOP compliance.
- Use IEC so women and SC/ST farmers actually draw the earmarked share.
What can Prelims ask on the Sub-Mission on Agricultural Mechanization?
- SMAM: 2014-15 under RKVY; ₹9,404.47 crore; 21.61 lakh machines.
- 27,554 CHCs; 646 Hi-tech Hubs; 25,608 FMBs.
- Subsidy: 40% general; 50% SC/ST, SF/MF, NER; NER small machinery up to 100%.
- Funding 60:40 / 90:10 NER-Himalayan / 100% UTs.
- Drones: 40,928 demos; 30% funds for women.
How to write about the Sub-Mission on Agricultural Mechanization in Mains
Practice question (10 marks, 150 words): Farm mechanisation for smallholders is more about rental markets than ownership. Examine this statement with reference to SMAM.
- Intro: SMAM design and scale.
- CHCs/FMBs vs individual subsidy.
- NER and women provisions.
- Drone and post-harvest angle.
- Conclusion: access over ownership.
How to use this in Mains
- As per PIB (2026-07-09): SMAM supports mechanisation for small farmers, women and disadvantaged groups with emphasis on NE States.
- Machines fill the gap as farm labour gets scarce.
Quotable data pointSMAM supports mechanisation for small farmers, women and disadvantaged groups with emphasis on NE States.
PIB: PIB Backgrounder: SMAM, 9 Jul 2026
Exam angle
Prelims: SMAM.
Practice MCQs
Original practice questions (not PYQs).
SMAM was launched in
Answer (b) & explanation
PIB Backgrounder, 9 Jul 2026.
Under SMAM, financial assistance for Custom Hiring Centres is generally
Answer (b) & explanation
PIB Backgrounder, 9 Jul 2026.
Questions students ask about this
When was SMAM launched and under which umbrella?
In 2014-15 as a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana.
How much central assistance has SMAM provided through 2025-26?
₹9,404.47 crore.
What is the general Centre:State funding pattern?
60:40 for most States; 90:10 for North-Eastern and Himalayan States; 100% Central for Union Territories.
How many Custom Hiring Centres has SMAM supported?
27,554.
Keep studying
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Official source: PIB: PIB Backgrounder: SMAM, 9 Jul 2026
facts from cited sources only; faculty review pending