NewKerala.com

Gujarat Allocates Record Rs 800 Crore for Tractor Subsidies to Aid Farmers

Gujarat's Agriculture Minister Jitu Vaghani announced a budgetary provision of Rs 800 crore for tractor subsidies in the 2026-27 fiscal year, marking the highest allocation under the state's mechanisation programme. Over the past five years, the state has disbursed nearly Rs 1,200 crore to more than two lakh farmers directly into their bank accounts. The AGR-50 Tractor Assistance Scheme was originally launched in 2011-12 by the then Chief Minister Narendra Modi with an initial outlay of Rs 55 crore. Under Chief Minister Bhupendra Patel, the scheme's scope has been expanded significantly to address farm labour shortages and boost productivity through modern machinery.

Key Points: Gujarat's Rs 800 Crore Tractor Subsidy Scheme for Farmers

  • Record Rs 800 crore subsidy for 2026-27
  • Over 2 lakh farmers benefited in 5 years
  • Direct bank transfer of assistance
  • Subsidy limit increased to Rs 1 lakh
  • Scheme launched by Narendra Modi in 2011-12
2 min read

Tractor subsidies of Rs 800 crore allocated, over two lakh farmers benefited: Gujarat Minister

Gujarat announces a historic Rs 800 crore tractor subsidy for 2026-27, benefiting over 2 lakh farmers under its agricultural mechanisation drive.

"Tractors are an essential tool for reducing labour in agriculture and increasing productivity. - Jitu Vaghani"

Gandhinagar, Feb 20

Gujarat has made a budgetary provision of Rs 800 crore for tractor subsidies in 2026-27, the highest allocation so far under the state's agricultural mechanisation programme, Agriculture Minister Jitu Vaghani informed the Legislative Assembly on Friday.

Replying to a question raised by a member of the Assembly on the tractor assistance scheme, the Minister said the state has disbursed Rs 1,191.94 crore to 2,01,605 farmers over the past five financial years for the purchase of tractors.

The assistance was transferred directly into the beneficiaries' bank accounts. "Tractors are an essential tool for reducing labour in agriculture and increasing productivity. The state government is extending maximum possible support to farmers to promote mechanisation," Vaghani said in the House.

He stated that the AGR-50 (Tractor Assistance Scheme) was launched in 2011-12 by the then Chief Minister of Gujarat and current Prime Minister Narendra Modi, with an initial outlay of Rs 55 crore.

The objective of the scheme was to modernise farming practices by supporting farmers in the purchase of tractors to improve sowing and production.

The Minister said that under the leadership of Chief Minister Bhupendra Patel, the scope of the scheme has been expanded substantially.

"A historic provision of Rs 800 crore has been made for tractor assistance in 2026-27. Gujarat has become the first state in the country to allocate such a large amount specifically for the tractor component," he said.

He also informed the House that the maximum subsidy limit for tractor purchases has been increased to Rs one lakh.

Vaghani provided year-by-year information, stating that in the fiscal year 2021-22, assistance amounting to Rs 144 crore was allocated to 30,568 farmers. In the subsequent year, 2022-23, a total of 29,933 farmers received Rs 142.08 crore. For the year 2023-24, assistance was extended to 59,311 farmers, who were granted Rs 282.34 crore; whereas in 2024-25, a total of 49,227 farmers benefited from Rs 238.16 crore. As of December 31, 2025-26, Rs 325.36 crore has been disbursed to 32,566 farmers.

The Minister added that the scheme has helped address farm labour shortages and enabled farmers to enhance productivity through the adoption of modern machinery.

- IANS

Share this article:

Reader Comments

S
Shreya B
Good step, but the article only talks about tractors. What about small and marginal farmers who can't afford a tractor even with a subsidy? We need schemes for smaller equipment too. The focus seems skewed towards larger landholdings.
V
Vikram M
Gujarat leading the way again! PM Modi's vision from 2011 is bearing fruit. Mechanisation is the future of Indian agriculture. Hope other states take note and implement similar schemes. Jai Jawan, Jai Kisan!
A
Aman W
Direct benefit transfer is key. No middlemen, no corruption. The money goes straight to the farmer's account. This transparency should be the model for all agricultural schemes across India.
P
Priya S
Addressing labour shortage is a huge point. Young people are moving to cities. If farming becomes easier with machines, maybe the next generation will consider staying back. A much-needed long-term view.
D
David E
Interesting data. The allocation jumped significantly for 2023-24. I wonder if that was a policy push or increased demand. Either way, investing in farm machinery is investing in food security. Smart move.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50