Government allocates ₹8,550 crore under SMAM to curb stubble burning and boost farm mechanisation

Livemint - Economy · 7 Jun 2026 · 2 min read
Prelims · Agriculture Mains · GS3 Agriculture High relevance

The Centre has earmarked ₹8,550 crore under the Sub-Mission on Agricultural Mechanisation (SMAM) to provide 150,000 small farmers with access to crop residue management machinery, aiming to reduce stubble burning and enhance agricultural productivity.

Key points

Sub-Mission on Agricultural Mechanisation (SMAM) will disburse ₹8,550 crore in FY27 to establish 5,000 custom hiring centres and hi-tech hubs for farm equipment rental, focusing on crop residue management (CRM) machinery.

Rashtriya Krishi Vikas Yojana (RKVY) will fund the initiative, with FY27 allocation exceeding the FY26 revised estimate of ₹7,000 crore, reflecting increased priority for agricultural mechanisation.

Small and marginal farmers (86% of India's 146.45 million operational holdings) are the primary beneficiaries, as they face financial barriers to purchasing equipment like happy seeders, balers, and mulchers.

Performance-linked outcomes include measurable reductions in stubble-burning incidents and wider adoption of mechanised farming practices, as mandated by the Department of Expenditure.

[GS3-Environment] The scheme directly addresses air pollution from stubble burning in northern states, linking agricultural policy with environmental governance under the National Clean Air Programme.

Agricultural drones and precision equipment like laser land levellers and paddy transplanters will be subsidised, targeting a 7.7% GDP growth in agriculture (FY26) through productivity gains.

Industry concerns highlight India's mechanisation gap with developed economies, with CICU advocating sustained policy support to address labour shortages in farming.

Bharatiya Kisan Union critiques the scheme's limited coverage (150,000 beneficiaries vs 126 million small farmers) and calls for stricter monitoring to prevent elite capture of subsidies.

Way Forward: Expand scheme coverage to at least 1 million farmers annually, mandate state-level audits of custom hiring centres, and integrate CRM machinery subsidies with state-level air quality action plans under the Commission for Air Quality Management.

Key terms

Sub-Mission on Agricultural Mechanisation (SMAM)

A centrally sponsored scheme under the Ministry of Agriculture since 2014-15 to promote farm mechanisation through subsidies for equipment procurement and establishment of custom hiring centres. For UPSC, it's significant as a convergence platform for multiple schemes like RKVY and PMKSY, addressing GS3 topics of agricultural productivity and environmental sustainability.

Crop Residue Management (CRM)

A component of SMAM specifically targeting stubble burning by promoting in-situ management through machinery like happy seeders that sow wheat without removing paddy straw. Relevant for GS3 environment questions on air pollution and GS3 agriculture questions on sustainable practices.

Custom Hiring Centres

Facilities where farmers can rent farm machinery at affordable rates instead of purchasing equipment. Important for UPSC as an institutional innovation in agricultural extension services, particularly for smallholders under 2 hectares (86% of Indian farmers).

Rashtriya Krishi Vikas Yojana (RKVY)

A flagship scheme launched in 2007-08 providing states flexibility in planning agriculture projects. Now subsumed under SMAM, its significance lies in being a core funding mechanism for state-specific agricultural needs, relevant for GS3 questions on federalism in agriculture policy.