Agriculture • Punjab
Punjab Is Giving Out 10,000 More Tractors at Up to Rs 7.5 Lakh Off. The Deadline Is 31 August
22 August 2026
Punjab has launched the second phase of the Green Tractor Programme, with another 10,000 tractors to be distributed on subsidised rates. The Punjab government will pay up to Rs 7.5 lakh of the price for each tractor. Applications close on 31 August 2026, and the minimum land requirement is five acres. The first phase, which distributed 25,000 tractors, finished by a balloting process that wrapped earlier this year.
What the scheme actually gives you
The Green Tractor Programme is a Punjab government subsidy on the purchase of new agricultural tractors in the 50 to 65 horsepower range. The subsidy is paid by the Punjab government directly, reducing the price the farmer pays at the dealer. Phase 2 is the second instalment of the same scheme — phase 1, which distributed 25,000 tractors, was completed by a balloting process earlier in 2026.
The first phase handed out 25,000 tractors. Phase 2 will hand out another 10,000. The two together bring the total under the programme to 35,000 tractors. The 50-65 HP range covers most of the small-to-medium tractors that small and medium Punjab farmers actually buy, which is why the scheme targets that range and not higher-HP industrial units.
Who can apply
The headline rule is that you must own at least five acres of agricultural land. The scheme is run by the Punjab Agriculture Department, and the eligibility criteria are written into the application form. There are three things to know about who is and is not eligible:
- You must own the land. Tenants and sharecroppers are not eligible to apply in their own name. The land record will be checked against the application.
- You must be a Punjab farmer. The scheme is for Punjab, run by the Punjab Agriculture Department, and the application is open to farmers across the province, not just Muzaffargarh where the launch was held.
- You must apply before 31 August 2026. The deadline is hard. Applications after the deadline are not accepted.
The launch in Muzaffargarh on 21 August was a public event to mark the opening of the application window. Farmers from across Punjab can apply at the Punjab Agriculture Department’s website or at the district agriculture office.
How the subsidy is paid
The subsidy in the Green Tractor Programme is structured as a flat rupee amount off the dealer’s price, not as a percentage discount. A farmer buying a tractor that costs Rs 25 lakh at the dealer will pay Rs 17.5 lakh if the subsidy is Rs 7.5 lakh. A farmer buying a smaller tractor in the 50-65 HP range at a lower price will get a proportionally smaller subsidy, but the headline number of “up to Rs 7.5 lakh” is the ceiling.
The exact subsidy tier by tractor model is published in the application form. The Punjab Agriculture Department uses a model-by-model table, and the subsidy varies by the on-road price of each approved tractor. Farmers should check the model table before applying, since the subsidy on the tractor you want may be lower than the headline Rs 7.5 lakh.
What the first phase looked like
Phase 1 of the scheme ran earlier in 2026 and distributed 25,000 tractors on the same general terms. The selection was done by a balloting process rather than first-come-first-served, which meant every eligible applicant had an equal chance. Phase 2 is expected to follow the same balloting model, although the Punjab government has not yet published the formal procedure for the second phase.
The pattern across both phases is that the scheme is being targeted at small and medium farmers. The five-acre minimum is the filter. Large landholders and corporate farms are not the target. The policy intent is to spread mechanisation across a wider base, not to subsidise existing large operators.
What to do before 31 August
For a farmer who is interested, the practical steps between now and the deadline are short and well-defined:
- Check the land record. Make sure the land title is in your name in the Punjab Land Revenue Record. The application is checked against the official record, and any mismatch will be grounds for rejection.
- Identify the tractor model. The subsidy is model-specific, so it is worth knowing which model you want before you apply. The Punjab Agriculture Department publishes the approved list.
- Apply on the official portal or district office. The application form is available on the Punjab Agriculture Department website and at the district agriculture office. Either route works.
- Wait for the balloting result. The selection, as in phase 1, will be by balloting. The result is expected in September.
Applications after 31 August are not accepted. There is no rolling window. If the deadline passes, the next opportunity would be phase 3 of the scheme, which has not yet been announced.
— On the per-farmer economics
The bigger picture
The Green Tractor Programme is the largest mechanisation subsidy that Punjab has run, and the two phases together will account for 35,000 new tractors on Punjab farms. The wider story is that the Punjab government has been running a sequence of farmer-friendly programmes through 2025 and 2026 — interest-free loans, the Kisan Card, and now the tractor subsidy — that are, in aggregate, a meaningful step in the direction of small-farmer support.
For the 10,000 farmers who will receive a tractor in this phase, the practical impact is the difference between a five-acre farm that is fully mechanised and one that depends on rented tractors at peak season. The economic value of owning a tractor on a small farm is not just the productivity gain but the time saved at sowing and harvest, when the cost of delay is the largest single risk a small farmer faces in a year.
The bottom line
The Green Tractor Scheme phase 2 is open across Punjab until 31 August 2026. The subsidy is up to Rs 7.5 lakh per tractor, and 10,000 tractors will be distributed by balloting. If you own five acres or more of agricultural land in Punjab, the application is on the Punjab Agriculture Department website. If you do not, the scheme is not for you, and the next round of subsidies will be on different terms.
What people are asking
What is the Punjab Green Tractor Scheme phase 2?
The Punjab government’s second phase of the Green Tractor Programme, an agricultural mechanisation subsidy. Phase 2 will distribute 10,000 tractors at a subsidy of up to Rs 7.5 lakh per tractor. Applications are open until 31 August 2026.
Who is eligible for the Green Tractor Scheme?
Farmers in Punjab who own at least five acres of agricultural land in their own name. Tenants and sharecroppers are not eligible. The land record is checked against the application.
How much subsidy is on offer?
Up to Rs 7.5 lakh per tractor in the 50-65 horsepower range. The exact subsidy varies by tractor model. The headline figure is the ceiling, and the per-model figure is published in the application form.
When is the deadline to apply?
31 August 2026. Applications after that date are not accepted. There is no rolling window.
How will the tractors be selected?
By balloting, as in phase 1. Every eligible applicant has an equal chance. The result is expected in September 2026.
Where do I apply?
The application form is on the Punjab Agriculture Department website. The same form is also available at the district agriculture office. Either route works.
Is this open to non-Punjab farmers?
No. The scheme is run by the Punjab government and is open to Punjab farmers only. Sindh, KP, Balochistan and other provinces have their own agricultural support programmes.
What was the first phase?
Phase 1 distributed 25,000 tractors on the same general terms earlier in 2026. The two phases together will account for 35,000 new tractors on Punjab farms.
