Telangana Allocates Rs 147.99 Crore for Farm Mechanisation in 2026-27

Telangana Agriculture Minister Tummala Nageswara Rao said the state government is taking steps to expand the implementation of the Agricultural Mechanisation Scheme, with an allocation of Rs 147.99 crore for 2026-27.

The minister said the scheme had remained largely sidelined during the previous government’s tenure and was revived after the Congress government came to power. The programme was reintroduced from the 2025-26 financial year with the objective of helping farmers gain better access to modern agricultural machinery and reducing their dependence on traditional and labour-intensive farming methods.

For 2025-26, the government had earmarked Rs 71 crore for agricultural mechanisation. Of this, Rs 63 crore was utilised, Tummala said. In view of the demand for farm machinery and the need to extend the programme to more beneficiaries, the allocation has now been increased substantially to Rs 147.99 crore for 2026-27.

The state government has begun preparations to roll out the scheme and is putting in place the necessary arrangements based on the financial contributions of the State and Central governments. However, the launch of the beneficiary selection process is currently dependent on guidelines that are yet to be issued by the Centre.

Tummala directed officials to initiate the selection process as soon as the Central guidelines are received and ensure that eligible farmers are able to access the benefits without unnecessary delays. He also stressed the need to provide farmers with greater choice while purchasing agricultural equipment.

Under the proposed mechanism, farmers will be allowed to purchase the machinery they require from an empanelled company of their choice. The minister said beneficiaries should not be compelled to procure equipment from a particular company or supplier. Such flexibility, he said, would enable farmers to make purchasing decisions based on their individual requirements.

Another key feature of the scheme will be the direct transfer of subsidy to farmers’ bank accounts. This will allow beneficiaries to compare the prices and quality of machinery offered by different companies before making a purchase.

The government expects the approach to promote competition among suppliers, help farmers secure better-quality equipment at reasonable prices and ensure more efficient use of public funds.

Under the scheme, SC and ST farmers will receive a 60 per cent subsidy, while BC and other farmers will be eligible for a 40 per cent subsidy, the minister said.