Crop Residue Management (stubble machinery and straw supply chain)
Funded in the 2026-27 Union Budget: Union Expenditure Budget 2026-27 (Feb 2026, Demand No. 1 (Department of Agriculture and Farmers Welfare), item 38.02 Rashtriya Krishi Vikas Yojna, BE 2026-27 ₹8,550.00 crore (CRM is implemented "as a component of Rashtriya Krishi Vikas Yojana", CRM Guidelines 2026, p.1))
In Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Delhi: 50% of the price of a stubble-management machine for a farmer, 80% for a custom hiring centre (up to ₹24 lakh a project), and 65% of the machinery cost of a paddy-straw supply-chain project — each machine capped at the amount printed in the guidelines.
- Lead benefit
- 80%of the cost, at most
- Components
- 3each read from the document
- Who can apply
- 10kinds of applicant
- Closing date
- Seasonalsee “When to apply”
What it pays
50% of the price of one stubble-management machine for a farmer, up to the ceiling printed for that machine (for example ₹1,20,000 for a super seeder).
What the document says, word for word
States add their own conditions and may add machines to the list (Annexure-I, Note (b)); in Punjab and Haryana see the state records for the current round. Preference goes to farmers who already own a matching tractor (cl. 5.1(iii)). Machines costing ₹1 lakh or more must be geo-referenced (cl. 6.0(vi)).
“5.1 Financial assistance to farmers for procurement of crop residue management machines on individual ownership basis — (i) Financial assistance @ 50% of the cost of machinery. (ii) The list of machines identified for crop residue management together with ceiling limit for subsidy is indicated in Annexure-I. … Note: (a) The financial assistance will be limited to 50% of the cost of the machine or the maximum permissible subsidy per machine as indicated above, whichever is lower.”A custom hiring centre of a cooperative, FPO, SHG, panchayat or rural entrepreneur gets 80% of each machine’s price, up to the ceiling printed for that machine, and at most ₹24 lakh for the whole centre.
What the document says, word for word
This works out one machine at a time; add up the machines in your project, and the total subsidy cannot pass ₹24,00,000 (cl. 5.2(vi)). A tractor alone is not allowed — it must come with 2–3 straw machines (cl. 5.2(iii)). The subsidy is credit-linked: a bank loan is needed, though a state may exempt projects up to ₹10 lakh if every payment goes through the bank (cl. 5.2, criteria (i)).
“5.2 Establishment of Custom Hiring Centres of Crop Residue Management Machines — (i) Credit Linked Back Ended Subsidy @ 80% of the project cost for the projects costing up to Rs. 30 lakhs/project … (iii) The maximum permissible assistance per machine under the CHC project is indicated in Annexure-II. … (vi) … The project cost may also exceed Rs. 30 lakhs. However, the maximum permissible subsidy for each project should not exceed Rs. 24.00 lakhs per project.”A paddy-straw collection project (balers, rakes, loaders) gets 65% of the machinery cost, counting at most ₹1 crore for a medium-baler project and ₹1.5 crore for a big-baler project.
What the document says, word for word
Enter the machinery cost from the proforma invoices; tractors alone are not allowed (cl. 5.3(vi)–(vii)). Under a bilateral agreement with a straw-using industry, the beneficiary puts in at least 10% and the industry the rest; without one, the beneficiary pays the balance 35% (cl. 5.3(iv)–(v)). Annexure-IV sets indicative machine costs that we have not encoded.
“5.3 Establishment of crop residue/ paddy straw supply chain — (i) Credit Linked Back Ended Subsidy @ 65%, only on the capital cost of machines under the project. … (iii) For the purpose of financial assistance, the project cost will be limited to Rs. 1.00 Crores for the medium size baler project and Rs. 1.50 Crores for the Big Baler Projects.”How much can I claim?
Enter machine to see the figure.
States add their own conditions and may add machines to the list (Annexure-I, Note (b)); in Punjab and Haryana see the state records for the current round. Preference goes to farmers who already own a matching tractor (cl. 5.1(iii)). Machines costing ₹1 lakh or more must be geo-referenced (cl. 6.0(vi)).
Who can apply
- Other farmer
- Small or marginal farmer
- SC farmer
- ST farmer
- Woman farmer
- Tenant or sharecropper
- Agri entrepreneur
- Cooperative
- Self-help group
- FPO
Papers you need
- Custom hiring centre or straw supply-chain project: the bank's loan application form
- Project report for the custom hiring centre or straw supply-chain project
- Proforma invoices (price quotes) of the machines you will buy
- Custom hiring centre up to ₹10 lakh without a bank loan: bank account statement showing every payment went through the bank
How to apply
- Apply on your state agriculture department’s online portal when it opens applications for crop residue machines; the state picks beneficiaries, by online lottery if there are more applications than the target (cl. 5.1(i), (iv)).
- Once selected, choose the machine from a manufacturer empanelled by the state, bargain the price with the dealer, and buy it; the subsidy comes to you by DBT (cl. 6.0(i)–(ii)).
- A custom hiring centre or straw supply-chain project takes a bank loan; the subsidy is credit-linked and back-ended, paid into the loan’s subsidy reserve fund (cl. 5.2, 5.3, Annexure-III).
- Machines are distributed by 15 August each year (cl. 4.0 timeline).
Applying is free. Never pay anyone to apply for you.
When to apply
Each state sets its own application dates; the guidelines ask states to get the annual plan approved by 31 March and distribute machines by 15 August (cl. 4.0).
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.