State Governments Announce Fresh Tractor Subsidy Scheme for 2026 Kharif Season
By Editorial Desk · 5 Jun 2026 · 3 min read
Ahead of the kharif sowing season, multiple state agriculture departments have announced fresh capital subsidy schemes for tractor purchases, with an emphasis on small and marginal farmers holding under five acres. Subsidies typically range between 25 and 50 percent of the ex-showroom price, subject to caps that vary by state.
Punjab and Haryana have extended their existing schemes with slightly higher caps for tractors under 35 HP, while Madhya Pradesh and Rajasthan have introduced new co-operative-society-linked schemes that bundle subsidised financing with the capital grant. Applications typically require land ownership documents and are processed through district agriculture offices.
Dealers say the schemes have historically driven a visible bump in entry-level and mid-range tractor sales in the weeks immediately following the announcement, particularly for models under 45 HP that qualify for the highest subsidy tiers.
Farmers are advised to check with their local agriculture department for exact eligibility criteria, as caps, income thresholds and documentation requirements differ meaningfully between states.