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