Agro Service Provider Scheme
Agro Service Provider Scheme of Gujarat gives an agro service provider a total subsidy of 75% up to Rs 7,50,000 in general areas, and 85% up to Rs 8,50,000 in tribal areas, released over five years starting with 40% or 50% in year one. Applications are made online on the iKhedut portal.
| Ministry | Agriculture, Farmers Welfare and Co-operation Department, Government of Gujarat |
|---|---|
| Benefit | Staged subsidy over five years for setting up a farm-machinery custom hiring service |
| Maximum benefit | Rs 8,50,000 in tribal areas; Rs 7,50,000 in general areas |
| Application mode | Online on the iKhedut portal, ikhedut.gujarat.gov.in |
| Official website | https://ikhedut.gujarat.gov.in/ |
What is the Agro Service Provider Scheme?
Agro Service Provider Scheme is a farm-mechanisation support scheme of the Agriculture, Farmers Welfare and Co-operation Department, Government of Gujarat. Gujarat's official scheme directory at mariyojana.gujarat.gov.in lists it as Agro Service Provider Yojana under that department.
The problem it addresses is the gap between the machinery Indian farming needs and the machinery a small farmer can own. A tractor, a rotavator, a power sprayer, a combine harvester or a straw baler is far beyond the reach of a two-hectare farmer, yet the same farmer needs each of them for a few days a year. An agro service provider buys the equipment once and hires it out across a cluster of villages, so the cost is spread over many users. The scheme underwrites the provider's investment so that the service exists at all.
How much assistance does the scheme give?
The Gujarat scheme directory sets out the subsidy as a five-year schedule, and the rates differ by area.
General areas; cumulative 75%, ceiling Rs 7,50,000
| Year | Share of cost |
|---|---|
| Year 1 | 40% |
| Year 2 | 10% |
| Year 3 | 10% |
| Year 4 | 7.5% |
| Year 5 | 7.5% |
| Total | 75% |
Tribal areas; cumulative 85%, ceiling Rs 8,50,000
| Year | Share of cost |
|---|---|
| Year 1 | 50% |
| Year 2 | 10% |
| Year 3 | 10% |
| Year 4 | 7.5% |
| Year 5 | 7.5% |
| Total | 85% |
Two features of this design are worth understanding before applying.
First, the assistance is staged, not lump-sum. The single largest instalment lands in year one, which is when the machinery is bought, but the remaining 35% in general areas arrives only across the following four years. A provider must plan working capital on the basis of the year-one share plus own funds or a bank loan, not on the full 75%.
Second, the ceiling binds independently of the percentage. If the project cost is Rs 20,00,000, 75% of it would be Rs 15,00,000, but the payable amount stops at Rs 7,50,000 in a general area. The percentage and the rupee ceiling both apply, and whichever is lower governs.
Who is eligible for the Agro Service Provider Scheme?
You can apply if:
- You intend to operate as an agro service provider in Gujarat, buying farm machinery and hiring it out to farmers.
- You can meet the balance of the project cost, at least 25% in general areas and 15% in tribal areas — from your own funds or a bank loan, because the state share never covers the whole cost.
- You hold a bank account in your own name for the direct transfer of each instalment.
- For the 85% tribal-area rate, your service is located in a notified tribal area of Gujarat.
You cannot apply if:
- You want the machinery only for your own farm. The scheme funds a service to other farmers; a farmer buying a tractor for personal use should look at the farm-mechanisation components on iKhedut instead, which subsidise individual purchases.
- You expect the entire subsidy in the first year. Applicants who cannot keep the service running for five years will forfeit the later instalments.
- Your service is outside a notified tribal area but you are claiming the 85% rate. The higher rate is not available in general areas.
How to apply for the Agro Service Provider Scheme
- Open the iKhedut portal at ikhedut.gujarat.gov.in and check whether the Agro Service Provider component is open in the current window.
- Click Schemes, then Agricultural Schemes, and locate the Agro Service Provider Yojana in the list.
- Click Apply, then Apply New, and complete the application with your personal details, the machinery you propose to buy, the project cost, the area you will serve, and your bank account details.
- Use Update Application to fix any error before you confirm; corrections are not possible afterwards.
- Confirm the application, then take a printout and keep it.
- Upload the supporting documents and track the application through the Applicant Corner at ikhedut.gujarat.gov.in/public/frm_Applicant_Corner.aspx.
Farmers and entrepreneurs without internet access can complete the same steps at a Village Computer Entrepreneur point in the gram panchayat, at a Common Service Centre, or at the Taluka Agriculture Officer's office.
What happens after the application?
The district agriculture office scrutinises the application, issues a pre-sanction approval, and only then should the machinery be bought. Buying first and applying later is a common and expensive mistake, because assistance is normally tied to purchases made after approval. Once the machinery arrives, the office verifies it physically against the invoice and the chassis or serial numbers, and the year-one instalment is released by direct transfer.
Instalments in years two to five depend on the service continuing to operate. Keep records of hiring, dates, farmers served, area covered and receipts; because these are what evidence continuity when the later instalments are claimed.
When can I apply?
Gujarat has not announced a single fixed last date for this component. iKhedut opens components in windows and closes them once the year's physical and financial target is met, so the honest answer is that the portal banner is the only reliable source. Windows frequently open before the kharif season. Check the iKhedut home page early rather than waiting for a district-level announcement.
Common reasons applications fail
- Machinery purchased before pre-sanction approval.
- Invoice in a different name from the applicant on the iKhedut form.
- Tribal-area rate claimed for a service located in a general area.
- Bank account name mismatch with Aadhaar, which blocks the direct transfer.
- Later instalments claimed without operating records for the service.
- Application confirmed after the window closed, or never confirmed at all.
Other Gujarat schemes an agro service provider should compare
The Agro Service Provider Scheme is a subsidy on the provider's cost. It is not the only route Gujarat offers to someone financing farm machinery, and applicants are frequently better served by combining routes or by choosing a different one.
The Tribal Development Department runs an interest-subsidy scheme for tribal youth buying large machines and vehicles for construction and agriculture, giving 9% interest subsidy against a loan taken from a bank. That is a different instrument: it reduces the cost of borrowed money rather than paying a share of the asset cost, and it is available only to tribal applicants. Where a tribal applicant qualifies for both, the two schemes address different parts of the same project. The state share of the asset cost, and the interest on the balance financed by the bank.
Gujarat's Integrated Horticulture Development Programme (HRT-2) separately subsidises farm mechanisation such as power tillers and mini tractors, harvesting equipment and processing equipment. A provider whose service is oriented to horticultural rather than field crops should check whether the machine in question is covered there.
The Dattopant Thengadi Karigar Vyaj Sahay Yojana of the Industries and Mines Department provides low-interest finance for machinery or working capital to registered artisans in urban and rural Gujarat. It is not an agriculture scheme, but a rural mechanic servicing farm equipment may find it a closer fit than the Agro Service Provider route.
The practical point is that Gujarat's machinery support is split across at least three departments, each with its own portal and its own application window, and the state's consolidated directory at mariyojana.gujarat.gov.in is the fastest way to see them side by side before committing to one.
Where to get help
- iKhedut portal and Applicant Corner: ikhedut.gujarat.gov.in
- iKhedut contact directory: ikhedut.gujarat.gov.in/Public/frm_Public_Contacts.aspx
- Taluka Agriculture Officer or District Agriculture Officer for pre-sanction and verification questions
- Agriculture, Farmers Welfare and Co-operation Department: agri.gujarat.gov.in
- Gujarat scheme directory: mariyojana.gujarat.gov.in
There is no application fee. Nobody can charge you for lodging an iKhedut application or for "arranging" a sanction.
Documents required
Frequently asked questions
How much subsidy does the Agro Service Provider Scheme give?
In general areas the scheme pays a cumulative 75% subject to a ceiling of Rs 7,50,000, and in tribal areas a cumulative 85% subject to a ceiling of Rs 8,50,000. The money is not paid in one go; it is released across five years.
How is the subsidy split across the five years?
In general areas the split is 40% in year one, 10% each in years two and three, and 7.5% each in years four and five. In tribal areas year one is higher at 50%, with the same 10%, 10%, 7.5% and 7.5% in the following four years.
Which department runs the Agro Service Provider Scheme?
The Agriculture, Farmers Welfare and Co-operation Department, Government of Gujarat runs the scheme, as recorded in the state's own scheme directory at mariyojana.gujarat.gov.in.
Where do I apply?
Applications are made online on the iKhedut portal at ikhedut.gujarat.gov.in, the single application channel for the department's farmer-facing schemes.
What is an agro service provider?
An agro service provider owns farm machinery and hires it out to farmers who cannot afford to buy it, offering ploughing, sowing, spraying, harvesting or threshing on a custom-hiring basis. The scheme subsidises the person providing that service rather than the farmers using it.
Why is the tribal-area rate higher?
Gujarat runs a separate Tribal Area Sub-Plan with its own outlay, and the first-year rate is set at 50% instead of 40% so that service providers establish themselves in districts where private custom-hiring capacity is thin.
Can I get the whole amount in the first year?
No. The maximum released in year one is 40% in general areas and 50% in tribal areas. The balance follows only if the service continues to operate in years two to five.
More from the Agriculture, Farmers Welfare and Co-operation Department, Government of Gujarat
- Scheme of Production of Domestic Indigenous Certified Seed of Cotton Varieties
- Scheme to Encourage Farmers to Add Value to Crops
- Scheme to Provide Assistance in Cow Maintenance Expenses to Farmers Practicing Completely Natural Farming Based on Indigenous Cows
- Kisan Parivahan Yojana
- Construction of Water Storage Tanks for Drip Irrigation
- Mukhya Mantri Agricultural Mechanization Scheme
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