Crop Residue Management Loan Scheme Punjab 2026 - 80% Subsidy on Agriculture Machinery, How to Apply

Punjab government's Crop Residue Management (CRM) Loan Scheme is accepting applications for subsidy on crop residue machinery through cooperative banks and the official subsidy portal. Individual farmers get up to 50% subsidy, while cooperative societies, farmer groups and panchayats get up to 80% subsidy on machines that manage paddy straw without burning.

Stubble burning is a big reason for air pollution in North India, and this scheme makes it easier for farmers to buy modern machines like super seeders, happy seeders, balers and choppers. Crop residue is also being supplied to bio-energy plants for power, compressed biogas and ethanol, which gives farmers a new source of income.

Application Process for CRM Loan / Subsidy Scheme

Applications for the Crop Residue Management loan and subsidy are accepted online through the Punjab Agriculture Schemes Subsidy Portal at agrimachinerypb.com. The portal is opened in rounds before each paddy season. In April 2026, the agriculture department invited applications for the coming season and accepted them online till 24 April 2026. Farmers should keep checking the portal for the next round before the paddy harvest season.

STEP 1 - Open the official portal at agrimachinerypb.com and log in with the farmer registration details. If bank details are not showing, update them first through the farmer registration link given on the homepage.

STEP 2 - Fill the online application form and upload scanned copies of required documents like Aadhaar card, passport-size photograph, Scheduled Caste certificate if applicable, and land papers.

STEP 3 - Submit the application before the last date of that round. Eligible applicants are selected as per guidelines, and through a draw system if needed.

STEP 4 - After approval letters are issued online, buy the machine from authorized manufacturers or dealers listed on the portal within the time given.

STEP 5 - For the loan part, meet the nearest cooperative bank or PACS to complete loan and margin money formalities.

Offline process through cooperative banks

Farmers who want the loan route can apply through cooperative banks or PACS in their area. For larger projects, state-level approval is needed.

STEP 1 - Visit the nearest PACS or cooperative bank with land papers, Kisan Card and identity proof.

STEP 2 - Fill the loan application form and submit the documents. For big projects, attach a proposal.

STEP 3 - Cooperative bank will process and forward the case.

STEP 4 - Physical checking of machinery is done before full subsidy or loan release.

STEP 5 - Repay the loan in 10 half-yearly installments as per the schedule.

Crop Residue Management Loan Scheme Details

Main aim of the scheme

The main aim of the scheme is to stop stubble burning and promote green farming methods. Making crop residue useful in bio-energy plants for power, compressed biogas and ethanol also opens new ways of earning for farmers. The scheme gives farmers and cooperatives easy access to modern machines that help manage paddy straw in fields or collect it for other uses. It is also linked with the Central Government's Sub-Mission on Agricultural Mechanization (SMAM), so farmers get extra help from national funds.

• Cut pollution caused by burning paddy straw.
• Help farmers buy new machines for in-field and out-of-field crop residue work.
• Build local supply chains for industries using agri-residue.
• Provide affordable credit to farmers and cooperatives through cooperative banks.

Subsidy and Loan Details

Under the scheme, Primary Agricultural Cooperative Societies (PACS) and Multi-Purpose Cooperative Societies (MPCS) can get up to 80% subsidy on eligible machines, with a maximum limit of ₹24 lakh, while keeping 10% margin money.

For individual farmers, the subsidy is set at 50% on machines, with 25% margin money required. The loan can be repaid within 5 years through 10 half-yearly installments, due on June 30 and January 31 each year. Extra working capital support is also available from NABARD and the Agriculture Infrastructure Fund (AIF). Check the Agriculture Infrastructure Fund scheme details for more information on this fund.

Machines Covered under Crop Residue Management Scheme

This scheme includes machines that help in chopping, mixing and collecting paddy straw:

• Super seeders, happy seeders and smart seeders for sowing wheat without burning straw.
• Balers, cutters, tedders, rakers, loaders, grabbers and telehandlers for collecting and moving straw.
• High power tractors of 60 HP and above, eligible for 80% subsidy under revised guidelines.
• Zero till drills, reversible ploughs, paddy straw choppers, shredders, mulchers, crop reapers and Super SMS attachments for combines.

The complete list of approved machines with manufacturer name, rate and manufacturing date can be checked in the below PDF.

The latest list can also be accessed on the official portal at approved machine list page.

Eligibility

Farmers, cooperative societies, FPOs and panchayats of Punjab are eligible to apply for the subsidy and loan:

• Individual farmers, PACS, MPCS, FPOs and panchayats in Punjab.
• Applicants must not have defaulted on government loans.
• Priority is given to farmers in paddy-wheat areas where stubble burning is common.
• Groups and cooperatives should form Custom Hiring Centers (CHCs) to rent machines to small farmers.

National Link and Punjab Targets

This scheme matches the national operational guidelines for Crop Residue Management, which focus on both in-situ and ex-situ use of paddy straw. Under the revised national rules, support is shared as 65% (centre plus state), 25% from industries and 10% from farmers. The national target is to collect 1.5 million MT of surplus paddy straw in Punjab and nearby states in three years, set up 333 biomass depots with 4,500 MT storage each, and create about 9 lakh man-days of employment.

For the 2026-27 financial year, the central government has approved ₹576 crore for crop residue management in Punjab, which is about 58% of the state's total agriculture fund. Punjab government will add around ₹230 crore from its own side. The state aims to give 23,000 new machines to farmers in 2026, including super seeders, smart seeders, surface mulchers, reversible ploughs, choppers and zero till drills, along with balers, rakes and tedders for ex-situ use.

These efforts are showing results. Stubble burning cases in Punjab have come down by about 94% in four years, from around 83,000 cases in 2022 to 5,114 in 2025. Farmers are also selling paddy straw at ₹100 to ₹500 per quintal instead of burning it, and some villages have started collecting and selling straw as a small business. Read more about the GOBARdhan scheme, which supports compressed biogas plants that use this agri residue.

Also read: Punjab Online Sand Booking Portal

Quick Highlights

Helpline and Contact Details

Help line email: agrimachinerypb.help@gmail.com

For application help, contact the nearest PACS or District Cooperative Bank branch, or the office of the Chief Agriculture Officer in your district. Farmers can also submit support tickets through the link given on the subsidy portal.

FAQ's

What is Punjab Crop Residue Management Loan Scheme 2026?

It is a government scheme launched in September 2025 to give loans and subsidies on machines that help farmers manage paddy straw without burning. The scheme is still accepting applications.

How much subsidy can a farmer get?

Individual farmers can get 50% subsidy, while cooperatives can get 80% subsidy up to ₹24 lakh.

Can I apply online?

Yes, online applications can be done through the official portal agrimachinerypb.com. The portal is opened in rounds before each paddy season.

Who will give loans under the scheme?

Loans are processed by cooperative banks and PACS across Punjab.

Which machines are covered?

Super seeders, happy seeders, smart seeders, balers, cutters, tedders, loaders, choppers, zero till drills and 60+ HP tractors.

What is the repayment period?

Loan repayment is set for 5 years in 10 half-yearly installments.

Who is eligible?

All farmers, PACS, MPCS, FPOs and panchayats of Punjab. Defaulters of government loans cannot apply.

What is Punjab's target for 2026?

Punjab aims to manage 100% of its nearly 20 million MT of paddy residue without burning and give 23,000 new CRM machines to farmers in 2026.