Most Indian farms are too small to justify buying a tractor. A government scheme solves this in a simple way. It lets farmers rent machinery instead, at a village-level hiring centre.
What SMAM Is
SMAM gives India’s small farmers a way around one basic problem: machines cost more than their land can justify.
- The Sub-Mission on Agricultural Mechanization (SMAM) was launched in 2014-15. The Ministry of Agriculture and Farmers Welfare runs it, as a Centrally Sponsored Scheme.
- SMAM does not stand alone. It sits inside a larger umbrella scheme, which has changed its name more than once. As of 2026, that umbrella is the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY).
True or False: SMAM was launched in 2014-15.
Reaching the Unreached
SMAM’s own slogan sums up its goal: bring machines to farmers who could never afford them alone.
- SMAM calls its aim “reach the unreached.” It targets small and marginal farmers, women, SC/ST farmers, FPOs, SHGs, and rural entrepreneurs.
- Its flagship tool is the Custom Hiring Centre (CHC). A CHC is a set of farm machines, kept ready for hire. A farmer can use a costly machine for a day, without ever owning one.
- SMAM also funds Farm Machinery Banks (FMBs), and hubs for hi-tech, high-value equipment.
- Funding is shared between the Centre and the states. Most states get 60:40 Centre-state funding. North-Eastern and Himalayan states get 90:10. Union Territories get full, 100% Central funding.
True or False: A Custom Hiring Centre lets a farmer use costly machinery without buying it.
Subsidy Rates for Farmers
SMAM does not pay every farmer the same subsidy rate.
- A general beneficiary gets a machinery subsidy of 40% of cost. SC/ST farmers, small and marginal farmers, and North-Eastern beneficiaries get a higher 50% instead.
- This subsidy is paid straight to the farmer’s bank account, through Direct Benefit Transfer.
- North-Eastern states get even more support in some cases. They can get up to 100% subsidy for small machinery, and 95% support to set up a Farm Machinery Bank.
True or False: Every individual farmer under SMAM gets the same 40% machinery subsidy, regardless of category.
Beyond the Individual Subsidy
Individual farmers are not the only ones SMAM funds. It also backs shared infrastructure and new technology.
- A Custom Hiring Centre project gets 40% financial support, capped at ₹250 lakh. A Farm Machinery Bank gets 80% support, capped at ₹30 lakh.
- SMAM funds drone use in farming too. A body like ICAR can get up to ₹10 lakh per drone. A Farmer-Producer Organisation can get grant support of up to 75%.
- SMAM sets aside 30% of its total funds for women farmers. See SciTech0001 — Science and Technology in Agriculture, Food and Industry for the wider tech context this mechanization push fits into.
True or False: SMAM earmarks 30% of its total funds for women farmers.
Three Names, One Umbrella
SMAM itself has kept its name since 2014. Its parent umbrella scheme has not.
- SMAM began under the Rashtriya Krishi Vikas Yojana (RKVY) in 2014. From 2017, that umbrella was renamed RKVY-RAFTAR.
- In October 2024, the government restructured farm schemes into two broad umbrellas. SMAM moved again, this time under PM-RKVY, where it sits today.
- A Custom Hiring Centre works like a machinery-rental cooperative. It solves a real problem: a small landholding rarely earns enough to justify buying a costly harvester outright.
True or False: As of 2026, SMAM sits under the Krishonnati Yojana umbrella.
Exam Trap — Know Which Rate Applies
Two common mix-ups show up again and again in questions on this topic.
- Flat-Rate Trap: SMAM is not one flat subsidy line. The 40-50% individual subsidy, the 40% CHC support, and the 80% Farm Machinery Bank support are three separate funding lines, each with its own cap.
- A question can swap these figures between categories, to test whether you know which rate applies to which component.
- Umbrella-Name Trap: SMAM is a sub-mission, not the umbrella scheme itself. It has sat under three different umbrella names since 2014: RKVY, then RKVY-RAFTAR, then PM-RKVY.
- A question naming an outdated umbrella for the current period is testing whether you tracked this 2024 restructuring, not whether you know SMAM’s core purpose.
True or False: SMAM’s 40% CHC support, 80% Farm Machinery Bank support, and 40-50% individual subsidy are all the same funding line.
Current Affairs — SMAM’s Scale
A July 2026 PIB backgrounder gave SMAM’s full cumulative scale, from its 2014-15 launch through 2025-26.
- Central assistance reached ₹9,404.47 crore. That funded 21.61 lakh machines, 27,554 Custom Hiring Centres, 646 Hi-Tech Hubs, and 25,608 Farm Machinery Banks.
- Individual beneficiaries grew from 2.07 lakh in 2020-21, to 2.32 lakh in 2024-25.
- The same backgrounder detailed SMAM’s drone push. Between 2023-24 and 2025-26, ICAR and its partners ran 40,928 Kisan Drone demonstrations, across 40,918 hectares, backed by ₹52.5 crore in support. (Source: PIB Backgrounder)
True or False: SMAM’s cumulative central assistance from 2014-15 to 2025-26 crossed ₹9,000 crore.
Exam Edge
Must KnowSMAM launched 2014-15, Ministry of Agriculture and Farmers Welfare, Centrally Sponsored Scheme. Flagship tool: Custom Hiring Centre (CHC). Aim: “reach the unreached.”
Good to KnowIndividual subsidy: 40% general, 50% SC/ST, small/marginal, and North-East. CHC support 40% (cap ₹250 lakh); FMB support 80% (cap ₹30 lakh). 30% of funds earmarked for women.
Great to KnowUmbrella history: RKVY (2014) → RKVY-RAFTAR (2017) → PM-RKVY (Oct 2024). Funding split: 60:40 Centre-state, 90:10 NE/Himalayan, 100% for UTs.
Exam TrapCumulative to 2025-26: ₹9,404.47 crore, 21.61 lakh machines, 27,554 CHCs, 25,608 FMBs, 646 Hi-Tech Hubs.
Quick Q&A
Q: What is SMAM’s flagship intervention?
A: The Custom Hiring Centre, letting farmers hire machinery instead of buying it.
Q: Which umbrella scheme does SMAM sit under today?
A: PM-RKVY, after the October 2024 restructuring — not RKVY or RKVY-RAFTAR, its earlier names.
Q: What subsidy rate do SC/ST and small farmers get?
A: 50% of machinery cost, higher than the 40% general rate.
Q: How much central assistance has SMAM given since 2014-15?
A: ₹9,404.47 crore, as of the 2025-26 cumulative figure.
MCQ on Agricultural Mechanization
Try 5 practice questions on SMAM, its subsidy rates, and its scale.
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