Did Gujarat Allocate Rs 800 Crore for Tractor Subsidies to Benefit Farmers?
Synopsis
Gujarat's budget for 2026-27 reveals an unprecedented allocation of Rs 800 crore for tractor subsidies, enhancing agricultural mechanization. This initiative aims to support over 200,000 farmers, reflecting a significant step towards modernizing farming practices in the state.
Key Takeaways
Gujarat allocates Rs 800 crore for tractor subsidies.
Over 200,000 farmers have benefited from the assistance.
Direct payments made to beneficiaries' bank accounts.
Scheme aims to modernize agricultural practices.
Increased subsidy limit to Rs one lakh for tractor purchases.
Gandhinagar, Feb 20 (NationPress) In the budget for 2026-27, Gujarat has allocated a remarkable Rs 800 crore for tractor subsidies, marking the largest commitment to date under the state's agricultural mechanization initiative, as stated by Agriculture Minister Jitu Vaghani during a session of the Legislative Assembly on Friday.
In response to a query from an Assembly member regarding the tractor assistance program, Vaghani revealed that over the last five financial years, the state has provided Rs 1,191.94 crore to 2,01,605 farmers for tractor acquisitions.
This financial assistance was deposited directly into the beneficiaries' bank accounts. “Tractors significantly reduce labor demands in agriculture and boost productivity. The state government is committed to offering maximum support to farmers in promoting mechanization,” Vaghani stated in the assembly.
He highlighted that the AGR-50 (Tractor Assistance Scheme), initiated in 2011-12 by then Chief Minister and current Prime Minister Narendra Modi, began with an initial budget of Rs 55 crore.
The scheme aims to modernize agricultural practices by facilitating farmers in purchasing tractors to enhance sowing and production efficiency.
Under the leadership of Chief Minister Bhupendra Patel, the scheme has seen significant expansion.
“A historic allocation of Rs 800 crore has been designated for tractor assistance in 2026-27, making Gujarat the first state in India to allocate such a substantial amount specifically for tractor aid,” he remarked.
Vaghani also mentioned that the maximum subsidy for tractor purchases has been increased to Rs one lakh.
He provided a year-by-year breakdown, revealing that in the fiscal year 2021-22, Rs 144 crore was allocated to 30,568 farmers. In 2022-23, 29,933 farmers received Rs 142.08 crore. For 2023-24, assistance was provided to 59,311 farmers, totaling Rs 282.34 crore; while in 2024-25, 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 concluded that the scheme has effectively addressed labor shortages in agriculture and empowered farmers to improve productivity through modern machinery adoption.
Point of View
Demonstrating a commitment to enhancing productivity and addressing labor shortages. As the nation watches, it will be interesting to see how these funds are utilized and the tangible benefits they bring to farmers across the state.
NationPress
6 May 2026
Frequently Asked Questions
What is the purpose of the tractor subsidies in Gujarat?
The tractor subsidies aim to support farmers in purchasing tractors, thereby modernizing farming practices and improving productivity.
How much has been allocated for tractor subsidies in 2026-27?
Gujarat has allocated a historic Rs 800 crore for tractor subsidies in the 2026-27 budget.
Who benefits from the tractor assistance scheme?
Over 200,000 farmers have benefited from the tractor assistance scheme over the past five financial years.
When was the AGR-50 Tractor Assistance Scheme launched?
The AGR-50 Tractor Assistance Scheme was launched in 2011-12 by then Chief Minister Narendra Modi.
What is the current maximum subsidy limit for tractor purchases?
The maximum subsidy limit for tractor purchases has been increased to Rs one lakh.
