Centre Sets Aside Rs 8,550 Crore to Boost Farm Machinery and Curb Stubble Burning in FY27
The Centre has set aside Rs 8,550 crore for FY27 to help about 1.5 lakh small and marginal farmers access modern machinery and reduce stubble burning. Funds flow through RKVY under the SMAM scheme and its crop residue management component, with 5,000 custom hiring centres planned.
The Central Government has earmarked Rs 8,550 crore in financial assistance for the 2026-27 financial year to help about 1,50,000 small and marginal farmers gain access to modern farm equipment. The aim is to raise the level of farm mechanisation and to reduce stubble burning by improving the management of crop residue left in fields after harvest.
The support will be given under the Sub-Mission on Agricultural Mechanisation (SMAM), including its Crop Residue Management (CRM) component, with the spending routed through the Rashtriya Krishi Vikas Yojana (RKVY). The plan also includes setting up 5,000 custom hiring centres and hi-tech hubs. These are facilities where farmers can rent costly machines at affordable rates instead of buying them outright. The Rs 8,550 crore outlay is higher than the revised estimate of Rs 7,000 crore for the previous year, showing increased focus on the sector.
Equipment covered under the scheme includes happy seeders, super seeders, balers, mulchers, agricultural drones, laser land levellers, precision seed drills, paddy transplanters and combine harvesters. Small and marginal farmers form the core target group because they usually cannot afford such machines on their own. According to the Agriculture Census 2015-16, India has around 14.6 crore operational holdings, of which nearly 86 per cent are small and marginal farms with land below two hectares. The government has linked the scheme's performance to measurable results, such as wider adoption of machinery and fewer stubble-burning incidents.
Exam angle: This story connects several important schemes and bodies for exam purposes. Candidates should remember that SMAM and its CRM component sit under the broader RKVY, that custom hiring centres are a shared-economy solution for expensive machinery, and that stubble burning is a major cause of winter air pollution in north India. The Agriculture Census data on small and marginal holdings is also a frequently asked fact.
Key Points to Remember
- Rs 8,550 crore earmarked for FY27, up from Rs 7,000 crore (revised estimate) the previous year
- Targets about 1,50,000 small and marginal farmers
- Routed through Rashtriya Krishi Vikas Yojana (RKVY) under SMAM and its CRM component
- Plans 5,000 custom hiring centres and hi-tech hubs for renting machinery affordably
- Equipment includes happy seeders, super seeders, balers, drones, laser land levellers and combine harvesters
- Per Agriculture Census 2015-16, about 86% of holdings are small and marginal (below 2 hectares)
Exam Relevance
Relevant for UPSC, SSC, State PCS and Banking exams under agriculture, government schemes and the economy.
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