Overview

The Crop Residue Management (CRM) Scheme is a Central Sector Scheme run by the Ministry of Agriculture & Farmers Welfare, Government of India, since 2018 to stop open burning of paddy and wheat stubble and promote its in-situ (in-field) and ex-situ management. The scheme currently operates in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and the NCT of Delhi — the belt most affected by post-harvest stubble fires that worsen winter air quality across North India.

Under the scheme, the Centre funds machinery subsidies and Custom Hiring Centres (CHCs) on a 60:40 cost-sharing basis with the four participating states (100:0 for Delhi), so that farmers can mechanically manage residue instead of burning it. By mixing shredded straw back into the soil or baling it for industrial fuel, the scheme also improves soil organic carbon and provides an additional income stream from straw sales to biomass power plants and paper/board industries.

According to government progress reports, more than ₹4,266 crore had been released to states and ICAR by mid-2026, supporting distribution of over 3.54 lakh CRM machines and the establishment of more than 43,500 Custom Hiring Centres. A further outlay of around ₹544 crore has been earmarked for 2026-27 to fund over 46,000 additional machines and around 141 straw-based supply-chain projects linking farmers to industrial buyers.

Key Benefits

• 50% subsidy for individual farmers on the purchase of eligible crop residue management machinery (benchmark/ex-factory price, whichever is lower).
• 80% subsidy for Custom Hiring Centres (CHCs) set up by cooperative societies, Farmer Producer Organisations (FPOs), registered farmer societies, panchayats, or individual rural entrepreneurs, on project costs up to ₹30 lakh — a correction from the earlier ₹15 lakh cap that applied in initial guideline years.
• 80% subsidy on tractors of 60 HP and above, with one subsidised tractor permitted per CHC, introduced in the 2024 operational guidelines to help CHCs run heavier residue-management implements.
• Direct Benefit Transfer (DBT): Subsidy is credited straight into the beneficiary's Aadhaar-linked bank account after physical verification of the purchased machine.
• No restriction on number of machines for CHCs, subject to the overall project cost ceiling, allowing a CHC to build a diversified machinery bank (seeders, balers, mulchers, rakes) that can be rented out to multiple farmers in a village.
• Soil health and extra income: In-situ incorporation of residue raises soil organic matter over time, while ex-situ baling creates a saleable biomass fuel for thermal power plants and paper mills, turning a disposal problem into a revenue source.

Eligible Machinery Under the Scheme

1. Super Seeder – Shreds standing stubble and sows the next crop (typically wheat) directly into it in a single pass.
2. Happy Seeder / Smart Seeder – Zero-till seed drills that sow into unburnt paddy stubble while leaving a mulch cover.
3. Paddy Straw Chopper / Shredder / Mulcher – Cuts and spreads loose straw for faster in-field decomposition.
4. Hydraulic Reversible MB Plough – Deep ploughing that turns and buries crop residue into the soil profile.
5. Rotavator and Zero-Till Seed Drill – Secondary tillage and direct-sowing implements often used alongside residue management.
6. Round/Square Straw Baler with Rake – Compresses loose straw into bales for transport and sale as industrial fuel.
7. Crop Reaper-cum-Binder / Shrub Master – Used for ex-situ residue collection ahead of baling.

Eligibility Criteria

1. The applicant must be a resident farmer, farmer group, Cooperative Society, FPO, registered Farmer Society, Panchayati Raj Institution, or a registered rural entrepreneur in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, or the NCT of Delhi.
2. For individual-farmer machinery subsidy, the applicant should not have availed subsidy on the same category of machine from any central or state scheme in the applicable cooling-off period (varies by state, check the current year's guidelines).
3. For CHC subsidy, the applicant entity must set up the facility in the project area and commit to custom-hiring the machinery to other farmers in the vicinity, not for exclusive personal use.
4. Applicant must hold a valid Aadhaar card linked to an active bank account for DBT transfer.
5. Priority is given to small and marginal farmers, women farmers, and SC/ST applicants where state-specific guidelines provide for it.
6. The machine purchased must be from a manufacturer/model empanelled and tested under the scheme's technical specifications (listed on the state mechanization portal).

Documents Required

• Aadhaar Card and a bank passbook/cancelled cheque with IFSC code (for DBT).
• Land ownership record (Khatauni/Khasra/Jamabandi as applicable in the state) for individual-farmer applications.
• Registration certificate, bye-laws, or incorporation proof for CHCs, Cooperative Societies, FPOs, or SHGs.
• Project proposal and cost estimate for CHC/machinery-bank applications (for the 80% subsidy route).
• Quotation/proforma invoice from an empanelled machinery dealer.
• Passport-sized photograph and a mobile number linked to Aadhaar.
• Caste certificate, where applicable, for SC/ST category benefits.

How to Apply

1. Visit the relevant portal: Apply through the central farm mechanization portal at agrimachinery.nic.in, or your state's dedicated CRM/mechanization portal — Punjab (agrimachinerypb.com), Haryana (agriharyana.gov.in), Uttar Pradesh (upagriculture.com), or Madhya Pradesh's e-Krishi Yantra Anudan portal.
2. Register/Login: Create or log in to your farmer profile using Aadhaar-based verification and your mobile number.
3. Choose the application type: Select either "Individual Farmer Machinery Subsidy" or "Custom Hiring Centre / Machinery Bank" depending on whether you are buying one machine or setting up a hiring facility.
4. Upload documents: Attach land records (for individual applications) or project/registration documents (for CHCs), bank details, and the dealer quotation.
5. Draw of lots/approval: Where applications exceed the target allocation, states typically conduct a transparent computerized lottery (e-lottery) to select beneficiaries.
6. Purchase and verification: After receiving sanction, purchase the machine from an empanelled dealer, retain the invoice, and allow the Agriculture Department official to physically verify/geo-tag the machine.
7. Subsidy disbursal: The approved subsidy amount is transferred via DBT to the beneficiary's bank account, usually within a few weeks of successful verification.

Important Points

• The scheme is restricted to Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and NCT of Delhi — farmers outside these states should check their state's own farm mechanization/SMAM subsidy scheme for similar machinery support.
• Application windows open seasonally (typically ahead of the Kharif harvest/paddy-sowing season) — watch state portal notifications rather than applying year-round.
• Subsidy is calculated on the benchmark cost fixed by the state or the actual invoice price, whichever is lower, so always confirm the empanelled machine price before purchase.
• CHCs must retain and operate the subsidised machinery for custom hiring for a minimum lock-in period defined in the sanction letter; selling it prematurely can require refunding the subsidy.
• Always verify the latest subsidy percentages, cost ceilings, and empanelled machine list on the official portal before applying, as operational guidelines are revised most years.

Frequently Asked Questions (FAQs)

Which states are covered under the CRM scheme?

The scheme currently covers Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and the National Capital Territory of Delhi — the region most affected by paddy stubble burning.

How much subsidy can an individual farmer get?

Individual farmers can get a 50% subsidy on the benchmark cost of eligible crop residue management machines such as Super Seeders, Happy Seeders, and straw balers.

What subsidy is available for Custom Hiring Centres (CHCs)?

CHCs set up by cooperatives, FPOs, panchayats, or rural entrepreneurs can get an 80% subsidy on project costs up to ₹30 lakh, plus an 80% subsidy on one tractor of 60 HP or above per CHC.

Can I still get a subsidy if I don't have farmland in my name?

Individual-farmer subsidy requires proof of land, but landless rural youth and groups can form a Custom Hiring Centre or join a cooperative/FPO to access the 80% CHC subsidy route instead.

Is burning stubble illegal if I don't take this subsidy?

Open burning of crop residue is banned under National Green Tribunal and state pollution control board orders regardless of whether a farmer has availed this subsidy; this scheme is meant to provide an affordable mechanical alternative.

How do I know which machine models qualify for the subsidy?

Each state mechanization portal publishes a list of empanelled manufacturers and models that meet the scheme's technical specifications; only machines purchased from this list are eligible for subsidy.

How long does it take to receive the subsidy after purchase?

After the Agriculture Department verifies and geo-tags the purchased machine, the DBT subsidy transfer is typically processed within a few weeks, though timelines vary by state workload.

Can a Custom Hiring Centre buy more than one type of machine under the scheme?

Yes, a CHC can build a mixed machinery bank — seeders, balers, mulchers, rakes, and a tractor — as long as the total project cost stays within the prescribed ceiling for the 80% subsidy.