Agricultural Farm Mechanization Project in Punjab (2025-2028)
The Government of Punjab has launched a groundbreaking project worth 7,000 million rupees, called Agricultural Farm Mechanization. This Revolutionary initiative is primarily aimed at farmers and is set to run from 2025-26 to 2027-28, and will cover every single district in Punjab province.
The core objective of the Farm Mechanization project is to support our farmers (kisan bhai) by providing a subsidy on agricultural machines and implements, enabling them to enhance farm productivity.
The Agricultural Farm Mechanization project operates through a cost-sharing model, making farming machines more affordable for farmers. Under this scheme, the Government of Punjab will bear 60% of the machinery cost, while the eligible beneficiary or individual farmer will contribute 40% of the remaining cost. The initiative is designed to benefit every farmer, regardless of their socioeconomic status, whether from lower, middle, or upper scales.
Steps to Apply for the Agricultural Farm Mechanization Project Subsidy
Required Documents:
You will find the full list of documents needed, such as proof of land ownership and CNIC copies, inside the EOI application form you purchase. You must also include a formal promise and (undertaking) stating that you meet all the scheme’s rules.
About the Punjab Agricultural Farm Mechanization Project
As an ongoing situation in Pakistan, the majority of farmers rely solely on tractors with cultivators, indicating that agricultural mechanization is limited only to basic field work. Implements for other essential farming tasks, such as planting, sowing, fodder harvesting, and silage making, are not available to farmers. This massive gap in machinery prevents our farmers from improving productivity, increasing yields, and reaching their full potential.
To address this significant gap, the Punjab government has introduced the Agricultural Farm Mechanization Project, which will reduce manual labor and enhance overall farming efficiency. The scheme is divided into two groups, with Group I comprising 26 types of agricultural implements and Group II comprising 12 kinds of implements. The government will support both groups with a substantial 60% subsidy for any machine. A generous aspect of the scheme is that it will benefit both farmers and machinery service providers, as they will now be able to reach even small-scale farmers.
Machinery Groups and Maximum Subsidy Limits
(Group-I vs. Group-II)
The Agricultural Farm Mechanization project divides the approved agricultural implements into two distinct groups based on their type and cost. While the government will pay 60% for both groups, there is a limit to it. Review the classification of machinery and subsidies for each group listed below.
Group-I Machinery (Maximum Subsidy: 5 Lakh Rupees)
Group I has 26 types of implements for 7,500 farmers, which include Rotavator, Disc Harrow, Disc Plows, Chisel Plows, and other planters. These tools are medium-cost and commonly used in Pakistan. The government will pay a Maximum of 5 Lakh Rupees in PKR (Rs. 0.500 million) for any single machine you apply for. The farming machinery of this group is below.
| Farm Machinery | Farm Machinery |
|---|---|
| Rotavator | Power Tillers 13 HP with Accessories |
| Disc Harrow | Power Tillers 5–9 HP with Accessories |
| Disc Plow 3 Discs | Potato Digger |
| Chisel Plow | Maize Sheller |
| Double Coulter Drill | Silage / Forage Harvester (Self-Propelled) |
| Mechanical Maize & Cotton Bed Planter | Oil Extractor Machine: 15–20 Liters per Hour |
| Potato Planter with Spray Application | Wheat Drill Spring Tines with Fertilizer Attachment |
| Raised Bed Planter | Groundnut Drill |
| Hydraulic Sprayer Engine Shoulder Mounted | Groundnut Digger |
| Boom Sprayer | Post Hole Digger |
| Mist Blower Sprayer Tractor Mounted | Olive Harvester Engine Operated |
| Mechanical Weeder Self-Powered | Olive Fruit Collector |
| Inter Row Rotary Cultivator | Fruit Harvesting Umbrella Spider Net |
Group-II Machinery (Maximum Subsidy: 10 Lakh Rupees)
The machinery of Group II includes 12 types of high-cost farming equipment, which will be provided to 1600 farmers. For a single machine purchased under Group-II, the government’s 60% subsidy will not exceed Rs. 10 lakh PKR ( 1 million). The complete list of implements approved under the Agricultural Farm Mechanization project Group-II is:
| Farm Machinery | Farm Machinery |
|---|---|
| Vegetable Nursery Transplanter | Sugarcane Planter Local |
| Wheat Straw Chopper cum Collector | Groundnut Thresher |
| Rice Nursery Raising Machine with Trays | Reaper cum Binder Tractor Operated |
| Tedder and Rake | Groundnut Picker Shaker Collector |
| Rice Transplanter (Walk After) | Silage / Forage Harvester Tractor Operated |
| Straw Square Baler | Silage Baler |
Important Rule:
You can apply for implements in both groups, but you can only get the subsidy and the final machinery from one group (either Group I or Group II). Getting machines from both groups is not allowed. This ensures a fair chance for everyone.
Eligibility Conditions (شرائط و ضوابط) of Agricultural Farm Mechanization Project
Understanding the 60% and 40% Agricultural Machinery Subsidy Model
The cost-sharing model is the primary financial engine of the Agricultural Farm Mechanization project, as the government and the beneficiary will share the machinery cost in a 60:40 ratio. Below is the explanation of this subsidy model.
Government Contribution
In this model, the government of Punjab is committed to bearing the major portion of the cost. They will provide a supportive 60% subsidy on the price of the approved agricultural implements and machinery. This substantial subsidy will reduce the burden on farmers and help them obtain modern implements more easily.
Beneficiary Share
The eligible participant, whether an individual farmer or a service provider, is responsible for contributing the remaining 40% of the total cost. The beneficiary’s share will represent the direct capital investment they make to own the equipment.
Implementation Strategy of the Agricultural Farm Mechanization Project
As the entire Agricultural Farm Mechanization project is expected to span a full three fiscal years, from 2025 to 2028, it will be implemented in three phases. Please note that the actual number of machines given out each year is flexible. This distribution depends on two main factors: the demand from farmers and the government’s available budget for that specific year.
Phase 1 (2025): It’s the start of the project. In this phase, pre-qualified firms will be selected, the first balloting process will take place, and farmers will begin receiving their machines.
Phase 2 (2026-27): In the second phase, more machines will be distributed to farmers, and they will receive guidance on their use and operation. Everything will be checked to ensure the machines are used effectively.
Phase 3 (2028): In the final phase, all remaining work will be completed, and the government will evaluate how effectively the project helped farmers increase crop yields.
Quality Assurance: The Role of Inspection Committees and the Subsidy Payment Mechanism
Since machinery is a significant investment, it comes with strict rules to make sure that every farmer receives new and high-quality implements. The process of quality assurance involves the following special committees.
Who Approves the Suppliers?
The companies that manufacture or import agricultural machines must first be approved by a selected group called the Prequalification Committee (PQC). This approval is conducted at the very beginning to ensure that only the most reliable companies, which follow strict quality standards, can sell machines under this subsidy scheme.
Checking the Machinery
When it comes to machinery, it will be checked twice by two different committees: QIC & DIC.
- First Check (QIC): The First Check will be conducted by the Quality Inspection Committee, which will inspect the machine before it departs from the factory or warehouse. QIC checks that the machine is built correctly and meets all approved standards.
- Second Check (DIC): The District Inspection Committee checks the machine after it arrives at the farmer’s land. This check will confirm that the machine was delivered to the right farmer.
How Payments are Made
The government uses a very secure process, so subsidy money is only paid after the farmer has the machine. The money is not given directly to the farmer.
Farmer’s Part
The selected farmer pays their 40% share of the machine’s total cost directly to the company.
Government’s Part
Only after the machine is delivered and inspected by the government committee (DIC) does the government pay the remaining 60% subsidy directly to the company.
Key Objectives of the Agricultural Farm Mechanization Project
Every major initiative comes with a significant purpose. The Agricultural Farm Mechanization Project has life-changing goals aimed at making farming profitable and efficient for everyone in Punjab. Check the most important reasons why this scheme started and what it seeks to achieve.
Promote Mechanization:
The Agricultural Farm Mechanization Project aims to increase awareness of and promote the use of modern, high-tech farming machines. With this project, the agricultural community in Punjab can purchase expensive tools and grow more crops.
Boost Farm Productivity
The project will play a huge role in helping farmers, as new machinery will enable them to work better and faster. It will also result in getting more food from each acre safely and profitably.
Reduce Production Costs:
Saving money for farmers is one of the primary objectives of the Agricultural Farm Mechanization project, which encompasses the overall process of growing their crops. It will result in farmers keeping more of the money they earn from selling their crops.
Support Small Farmers:
With this scheme, even small farmers who cannot afford to buy an expensive machine can still benefit from modern technology. It also encourages service providers to buy the machinery and rent it out to their neighbors and other farmers.
FAQs
Why This Project is a Game Changer for Punjab Farming
The Agricultural Farm Mechanization project is more than just a scheme to hand out machines. It is a major step toward making farming in Punjab modern, secure, and profitable for generations to come. The project will address many problems faced by farmers, as they will be able to purchase expensive machinery with a 60% subsidy. The government will inspect the machinery twice, which means everyone receives guaranteed quality tools. Also, the farmers involved will learn new, modern farming techniques. They can then share these simple methods with others who could not join the program. This vital spread of knowledge will ultimately make the entire project successful and truly legitimate across the Punjab province.