Ramya Arul Rose

Expert

Published on: Jun 24, 2026

Agricultural Mechanization Promotion Scheme

The Ministry of Farmers Welfare, Government of India, has initiated the implementation of the approved the Agricultural Mechanization Promotion Scheme with the primary objective of reducing air pollution caused by stubble burning. It is an evident fact that metro cities such as Mumbai, Chandigarh, as well as the National Capital of Delhi are affected by greater air pollution on a year-to-year basis. One of the primary reasons behind this is said to be the burning of crop residue by farmers. Due to this, numerous other cities and villages are suffering the evil pangs of pollution and contamination of the air. Thus, in order to nullify this and control pollution, the Central Government of India is launching Agricultural Mechanization Promotion Scheme 2018-2019. The Government of India is taking all the necessary measures towards enhancing the Agricultural Mechanization Promotion Scheme, also known as Crop Residue Management.

The Budget

The Central Government of India has estimated to spend nearly INR 1151.80 Crores within the financial years of 2018-2019 and 2019-2020 towards this scheme - which is expected to be split into INR 591.65 Crores and INR 560.15 Crores respectively.

Name of Scheme Agricultural Mechanization Promotion Scheme 2018-2019
Implementation Authority Central Government of India and The Ministry of Agriculture and Farmers Welfare
Purpose of proposal To decrease the rate of Air Pollution caused by Stubble Burning
Grantees benefited Citizens from the states of Punjab, Haryana, Uttar Pradesh and the NCR Delhi
Budget allocated INR 1151.80 Crores
Execution Period Financial Years: 2018 - 2019, 2019 - 2020

Establishment of Farm Machinery Banks

With the help of Agricultural Mechanization Promotion Scheme, the farmers can easily hire the

in-situ crop residue management machinery through which the Government is hoping to reduce air pollution caused by the agricultural sectors. Apart from this, the Scheme also ensures financial assistance of up to 80 per cent to various Farmers Societies, Farmer Producer Organization Scheme (FPOS), Self-Help Groups, Women Farmer Groups, etc.

Financial Aid to Farmers

Apart from the benefits mentioned above, additional financial aid of 50 per cent is rendered to the farmers to help them purchase agricultural machinery and other types of equipment for Crop Residue Management. Thus, by providing such remarkable benefits, the Government believes that the outcome of Agricultural Mechanization Promotion Scheme will definitely reduce Stubble Burning and thereby reduce air pollution.

Education, Information and Communication

On the context of Agricultural Mechanization Promotion Scheme, the Central Government of India provides some financial support to the Concerned State Government along with the Krishi Vigyan Kendras (KVKs). Such Kendras include an agricultural extension centre in India, ICAR - Central Island Agricultural Research Institutes, Central Government Institutes and Public Sector Undertakings. Besides this, the Government of India is hoping to continue this awareness by organising many campaigns through films, documentaries, radio and TV programmes, advertisement in print media, Camps, etc. for achieving Zero Stubble Burning.

Beneficiaries of this Scheme

  • Corresponding State Governments will identify various recipients through District Level Executive Committee (DLEC) for the establishment of farm machinery bank.
  • It can also be utilized for Custom Hiring of products and procurement of Machines on individual ownership basis in order to avail the benefits in a transparent and time-bound manner.
  • The State Nodal Department ties up with the Local Banks to credit financial aid towards the requirements of the farmers.
  • And finally, name and details of selected beneficiaries will be documented at district level indicating Aadhar/UID numbers, and the financial assistance is expected to be paid through District Benefit Transfer (DBT)
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Frequently Asked Questions

Common questions about Agricultural Mechanization Promotion Scheme.

The Agricultural Mechanization Promotion Scheme is an initiative launched by the Ministry of Farmers Welfare, Government of India, to reduce air pollution caused by stubble burning. It aims to provide farmers with access to crop residue management machinery and equipment through farm machinery banks and financial assistance.
This scheme is crucial because stubble burning by farmers is a significant contributor to air pollution in metro cities like Delhi, Mumbai, and Chandigarh. By promoting agricultural mechanization and providing alternative solutions, the scheme aims to reduce stubble burning and its negative impact on air quality.
The primary beneficiaries of the Agricultural Mechanization Promotion Scheme are farmers from the states of Punjab, Haryana, Uttar Pradesh, and the National Capital Region of Delhi. Farmer societies, Farmer Producer Organizations (FPOs), Self-Help Groups, and Women Farmer Groups are also eligible for financial assistance under the scheme.
The Central Government of India has allocated a budget of INR 1151.80 Crores for the Agricultural Mechanization Promotion Scheme, split into INR 591.65 Crores for the financial year 2018-2019 and INR 560.15 Crores for the financial year 2019-2020.
The scheme facilitates the establishment of farm machinery banks, where farmers can hire crop residue management machinery. Additionally, farmers can receive financial assistance of up to 80% for purchasing agricultural machinery and equipment for crop residue management.
The Central Government provides financial support to Krishi Vigyan Kendras (KVKs), which are agricultural extension centers, ICAR institutes, and other public sector undertakings. These organizations play a crucial role in educating and creating awareness among farmers about the scheme and the importance of reducing stubble burning.
The corresponding State Governments identify beneficiaries through District Level Executive Committees (DLECs). The selection process is designed to be transparent and time-bound, with beneficiaries' names, Aadhaar/UID numbers, and financial assistance details documented at the district level.
The Government of India aims to raise awareness about the scheme and the importance of reducing stubble burning through various campaigns. These include films, documentaries, radio and TV programs, print media advertisements, and camps focused on achieving zero stubble burning.
The State Nodal Department collaborates with local banks to credit financial aid towards the requirements of the farmers. The financial assistance is expected to be paid through Direct Benefit Transfer (DBT) to ensure transparency and efficient delivery.
The Government of India believes that the Agricultural Mechanization Promotion Scheme will significantly reduce stubble burning and air pollution caused by the agricultural sector. By providing farmers with access to machinery, equipment, and financial assistance, the scheme aims to promote sustainable agricultural practices and improve air quality.