TN Agri Budget 2026: Mechanisation drive to get Rs 227 crore fillip

CHENNAI: Seeking to address the growing shortage of agricultural labour and accelerate farm mechanisation, the State government on Thursday announced a comprehensive package to expand access to farm machinery, strengthen custom hiring services and encourage agri-entrepreneurship across Tamil Nadu.

Presenting the Agriculture Budget in the Assembly, Agriculture-Farmers' Welfare Minister Vinoth said the government would implement the Agricultural Mechanisation Scheme at an outlay of Rs 227.20 crore, benefiting 24,000 farmers during 2026-27.

Under the scheme, 8,870 power tillers, 5,090 power weeders, 1,400 rotavators and 855 tractors will be distributed with a subsidy. The government has also enhanced the maximum subsidy for installing solar dryers from Rs 3.50 lakh to Rs 4.40 lakh, while women farmers will be given priority in the distribution of machinery.

To improve access to modern equipment, the government will establish 50 village-level Agricultural Machinery Custom Hiring Centres, each eligible for an 80 per cent subsidy, subject to a ceiling of Rs 8 lakh. Notably, 30 per cent of the scheme allocation has been earmarked for Women Self-Help Groups.

The Budget also proposes the establishment of 50 Integrated Agricultural Machinery Hiring Business Centres offering machinery for cultivation as well as value-addition activities. The centres will receive 75 per cent subsidy for Scheduled Caste, Scheduled Tribe, women entrepreneurs and agricultural engineering graduates, while other entrepreneurs will be eligible for 50 per cent subsidy. The scheme carries an allocation of Rs 8.13 crore.

Vinoth said the initiatives are aimed at reducing cultivation costs, ensuring timely farm operations and enabling farmers to overcome labour shortages through greater adoption of mechanisation while creating new opportunities for rural entrepreneurship.