Crop Residue Management (CRM) Subsidy Scheme
50% subsidy on stubble-management machinery for an individual farmer, and up to 80% for a panchayat, cooperative society or custom hiring centre.
Run by: Department of Agriculture & Farmers Welfare, Government of Punjab
- Individual farmer
- 50% subsidy
- Panchayat / co-op / CHC
- Up to 80%
- Apply on
- agrimachinerypb.com
- Kharif 2025 result
- Burning cases down 53%
Overview
Burning paddy straw is not something farmers do casually — it is what happens when the window between paddy harvest and wheat sowing is three weeks and clearing the residue any other way costs money the crop has not earned yet. The CRM scheme attacks the cost side: it subsidises the machinery that lets straw be mulched, chopped or baled instead of set alight.
The split matters. An individual farmer gets 50% of the machine cost; a group — a Gram Panchayat, a cooperative society, a farmer group or a Custom Hiring Centre — gets up to 80%. That 80% tier is the practical route for most smallholders, because a Happy Seeder or baler makes no economic sense on a few acres but works well when a CHC buys it and rents it out. In Kharif 2025 the state disbursed ₹395 crore for CRM machinery and stubble-burning cases fell 53%, from 10,909 to 5,114.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- 50% of the cost of CRM machinery for an individual farmer.
- Up to 80% for a Gram Panchayat, cooperative society, farmer group or Custom Hiring Centre.
- Covers both in-situ machinery (mulching and sowing into the residue) and ex-situ (baling straw for removal).
- The CHC route means a smallholder can hire the machine cheaply rather than buying one they cannot justify.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Farmer cultivating in Punjab, or a registered group / panchayat / cooperative society / CHC
- Purchasing approved CRM machinery from an empanelled manufacturer
- Applied and sanctioned on the agrimachinerypb portal before purchase
- Bank account for the subsidy transfer
Not covered
- Machinery bought before sanction or from a non-empanelled supplier
- Machines outside the approved CRM machinery list
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Aadhaar card
- Land record (jamabandi) or the group / CHC registration
- Bank passbook
- Portal application and sanction letter
- Machine purchase invoice from the empanelled manufacturer
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Apply on agrimachinerypb.com in the window
Applications open ahead of the paddy harvest. Pick the machine and apply before buying anything — sanction has to come first.
- 2
Buy from an empanelled manufacturer
Once sanctioned, purchase the approved machine from an empanelled supplier and keep the invoice.
- 3
Verification and subsidy release
The department verifies the machine against the sanction, and the 50% or 80% subsidy is transferred to your account.
Frequently asked questions
How do I get the 80% rate instead of 50%?
The 80% tier is for groups — a Gram Panchayat, cooperative society, registered farmer group or Custom Hiring Centre. An individual farmer gets 50%.
A baler is too costly even at 50%. What else can I do?
Hire from a Custom Hiring Centre. CHCs buy the machinery at 80% subsidy specifically so smaller farmers can rent it for a season instead of owning it.
Can I buy the machine first and claim the subsidy after?
No. Apply and get sanction on the portal before purchasing, and buy only from an empanelled manufacturer — otherwise the claim fails.
Facts checked against agrimachinerypb.com on 24 July 2026. editorial policy.