Punjab Farm Machinery Subsidy 2026-27: 60% Subsidy up to Rs 1 Million for 9,100 Farmers

Punjab’s Agricultural Farm Mechanization Project remains an ongoing provincial scheme in 2026-27. The Agriculture Department’s current development-programme page confirms a 60% machinery subsidy model with an overall target of 9,100 farmers across two machinery groups.

Under the official targets, Group I supports 7,500 farmers with subsidy capped at Rs 500,000, while Group II supports 1,600 farmers with subsidy capped at Rs 1 million. The project runs from 2025-26 to 2027-28.

Farm machinery subsidy at a glance

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• Project: Agricultural Farm Mechanization Project
• Project period: 2025-26 to 2027-28
• Total project cost: about Rs 6.170 billion
• 2026-27 allocation: Rs 386 million
• Subsidy rate: 60%
• Overall farmer target: 9,100

Group I: 7,500 farmers

The Agriculture Department’s official target states:

• Farmers: 7,500
• Subsidy: 60%
• Maximum subsidy: Rs 500,000
• Implements: 26 categories/types under the project target

The cap means the government contribution under Group I is not unlimited. A machine costing enough to exceed the Rs 500,000 subsidy ceiling will still be subject to the maximum project support.

Group II: 1,600 farmers

For higher-value machinery, the official target states:

• Farmers: 1,600
• Subsidy: 60%
• Maximum subsidy: Rs 1,000,000
• Implements: 12 machinery/implement categories under the project target

This does not mean every Group II farmer automatically receives Rs 1 million. The actual subsidy depends on the eligible machine cost and the scheme’s approved calculation, up to the stated maximum.

How the 60% subsidy works

A 60% cost-sharing model means the government supports a defined share of eligible machinery cost while the farmer/service provider pays the remaining share, subject to caps and project conditions.

For example, if an approved Group I implement cost Rs 600,000 and the full 60% rate applied, 60% would be Rs 360,000—below the Rs 500,000 cap. If the calculated subsidy exceeded the cap, the cap would control the maximum government contribution.

This example explains the arithmetic only. The actual payable amount is determined by the approved machine price and programme rules.

Who is the project designed to help?

The official project background describes a province-wide effort to provide agricultural machines and implements to farmers and agricultural mechanisation service providers on a cost-sharing basis.

The project aims to make farm operations more efficient, reduce labour/power constraints and improve access to modern machinery.

What are the project’s main objectives?

Punjab Agriculture’s project pages identify objectives including:

• Distribution of multipurpose advanced machinery.
• Reducing physical drudgery in farm operations.
• Introducing smart-farming technologies through mechanisation.
• Improving resource-use efficiency and farm productivity.
• Supporting agricultural sustainability and climate resilience.
• Creating employment opportunities through machinery-based services.
• Building farmer awareness and capacity for mechanised farming.

Is this the same as the Green Tractor Scheme?

No. The Agricultural Farm Mechanization Project is a wider machinery/implement subsidy project. The Green Tractor Programme and high-power tractor initiatives have their own tractor-specific targets, horsepower ranges and subsidy rules.

A farmer should not combine eligibility, deadlines or subsidy amounts from the Green Tractor Scheme with this farm machinery project.

Is this the same as the Hi-Tech Farm Mechanization Financing Programme?

No. Punjab also has a separate Hi-Tech Farm Mechanization Financing Programme involving interest-free financing for high-value machinery such as combines, planters, transplanters, balers and other equipment.

The scheme discussed here is the Agricultural Farm Mechanization Project with a 60% subsidy/cost-sharing model.

Is a fresh 2026-27 farmer application window open?

The current Agriculture Department 2026-27 development page confirms that the project is ongoing and publishes the 7,500 + 1,600 farmer targets. However, the page itself does not provide a new province-wide 2026-27 farmer application closing date.

Farmers should therefore check the Agriculture Department’s current notices and District Agriculture Office instructions for the active application/balloting phase instead of reusing a deadline from an older procurement or earlier rollout notice.

Why procurement notices are not farmer application deadlines

During project implementation, the Agriculture Department has also issued expressions of interest and prequalification documents for machinery manufacturers/importers and project consultants. Those procurement deadlines are for suppliers/consultants, not automatically the deadline for farmers seeking subsidised machinery.

This distinction is important because search results can show an official project PDF with a closing date that has nothing to do with the farmer application stage.

What should a farmer do now?

1. Check the current Punjab Agriculture ongoing-schemes page.
2. Contact the relevant District Agriculture Office/Field Wing for the active phase.
3. Ask which Group I or Group II implements are currently open for farmer applications.
4. Confirm the approved machine price and subsidy cap before making a purchase commitment.
5. Use only the official application/balloting procedure announced for that phase.

What should farmers avoid?

• Do not buy a machine first assuming the government will reimburse 60% later.
• Do not pay an agent for guaranteed balloting/allotment.
• Do not use a Green Tractor application form for this machinery project.
• Do not treat a manufacturer-prequalification EOI as a farmer application notice.
• Do not rely on a subsidy figure above the official Rs 500,000/1 million group caps.

How large is the project?

The Agriculture Department lists the project cost at approximately Rs 6,169.931 million. For 2026-27, the current ongoing-schemes page shows an allocation of Rs 386 million.

The overall target across the project period is 9,100 farmers in the two machinery groups.

Official links

• Punjab Agriculture – Ongoing Schemes 2026-27
• Punjab Agriculture – Ongoing Projects
• Agriculture Department Punjab

FAQs

What is the subsidy rate?

60% under the Agricultural Farm Mechanization Project’s published cost-sharing targets.

What is the maximum Group I subsidy?

Rs 500,000, with 7,500 farmers targeted across 26 implements.

What is the maximum Group II subsidy?

Rs 1 million, with 1,600 farmers targeted across 12 implements.

Is a new 2026-27 closing date published on the ongoing-schemes page?

No. The current page confirms ongoing status and targets but does not publish a fresh farmer closing date. Farmers should follow the active phase notice from the Agriculture Department.