What Is DBT in Agricultural Mechanization?
DBT in agriculture refers to the direct transfer of financial support from the government into farmers’ bank accounts for acquiring agricultural machinery and related services, primarily under the Sub-Mission on Agricultural Mechanization (SMAM) and allied programmes. This direct transfer replaces older models that often involved intermediaries, reducing delays and leakages in subsidy distribution.
Mechanization Momentum by the Numbers (until Dec 2025)
According to government data up to December 2025, targeted investments in mechanization have yielded tangible outcomes:
- Over 21,61,202 machines and equipment have been provided to Indian farmers on subsidised terms.
- Governments have supported 27,554 Custom Hiring Centres (CHCs), 646 high-tech hubs, and 25,608 farm machinery banks to make equipment accessible even to smallholders.
- Central funds totaling around ₹9,404 crore have been released to states to drive mechanization efforts.
- DBT systems are embedded in these schemes, ensuring subsidies are credited directly to verified beneficiary accounts without intermediaries.
How Farmers Benefited in 2025
Several initiatives in 2025 demonstrate the benefits of DBT in mechanization and related agricultural support:
In Andhra Pradesh, a renewed mechanization push under SMAM saw more than 25,000 farmers receive subsidised assistance within just 45 days, with ₹61 crore in subsidies credited directly at the point of machinery purchase. This front-end subsidy model helps ease financial barriers for small and marginal farmers.
Odisha’s CM-Kisan scheme, while broader than mechanization, used DBT to disburse ₹1,041 crore to over 51 lakh farmers in 2025, boosting incomes and enabling investments—often into farm equipment and infrastructure.
In Balangir district, government representatives reported that 78,681 agricultural machines and ₹459.68 crore in subsidies were delivered via DBT, highlighting on-ground progress in targeted mechanization and technological support.
Across India, DBT’s integration with modern agriculture schemes has helped cut red-tape and ensured timely assistance, enabling farmers to plan and invest in tools that reduce labour intensity and improve yields.
Why DBT Matters for Farmers
DBT’s role in mechanization and broader agricultural schemes has delivered multiple benefits:
Transparency & Efficiency: Funds flow directly into beneficiaries’ accounts, eliminating intermediaries and minimizing corruption and delays. It simplifies monitoring and ensures only eligible farmers receive support.
Increased Adoption of Technology: Subsidies for tractors, harvesters, spray equipment, and other implements — many provided via DBT-linked SMAM programmes — help farmers adopt mechanized farming practices and reduce labour costs.
Expanded Access Through Hiring Centres: By establishing CHCs and machinery banks, small and marginal farmers can access expensive equipment without owning it, cushioning financial risk and increasing productivity.
Challenges and the Road Ahead
While DBT has proven effective in many aspects, adoption levels of mechanization across India remain uneven. Studies suggest only about 40–45% of farming activities are mechanized, leaving scope for deeper penetration, especially in horticulture and rainfed areas.
To boost outreach, policymakers are looking at stronger digital integration, localized awareness drives, and tailored incentives for women, smallholder and marginal farmers under future DBT and mechanization frameworks.
