§1What this business is
The business owns two tractors with ploughs, harrows, disc harrows, cultivators, seed drills and fertiliser spreaders, and works farmers' fields for a fee — ploughing, seed-bed preparation, sowing, weeding and fertiliser application. Small and marginal farmers who cannot buy a tractor are the main customers.
Capacity: Sales of ₹20.16 lakh a year from ploughing, discing, harrowing, seed-bed preparation, sowing, weeding, cultivating and fertiliser application.
§2Is it right for you?
Who it is for
A farmer or rural youth who can drive and maintain tractors and knows the farmers of nearby villages.
Who it is not for
Someone far from farming areas or unwilling to work long days in sowing and harvest seasons.
Advantages
- Small farmers need machines but cannot buy them
- Two crop seasons give two peaks of work
- Tractors can also haul goods off-season
- Fits government push for custom hiring
Drawbacks
- Work is seasonal and weather-bound
- Hill fields are small and hard to reach
- Diesel and repairs eat into income
- The profile's sales sit below its break-even
Skills you need
- Tractor driving and implement use
- Basic machine repair
- Scheduling jobs across villages
- Collecting dues from farmers
Why difficulty 2/5: Familiar work for farm families, but seasonal and dependent on village networks.
§3Market
Who buys
- Small and marginal farmers
- Horticulture and herb growers
- Farmer groups and FPOs
How it sells
- Village-level bookings through word of mouth
- Tie-ups with FPOs and cooperatives
- Seasonal advance booking
Good to know
- The profile says the many small and marginal farmers and the hilly terrain create demand for affordable, tailored machine services.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Tractor | 2 | ₹10.00 lakh |
| Ploughs | 4 | ₹1.00 lakh |
| Harrows | 4 | ₹0.60 lakh |
| Seed drills | 4 | ₹0.60 lakh |
| Disc harrows | 4 | ₹1.00 lakh |
| Cultivators | 4 | ₹0.60 lakh |
| Fertiliser spreader | 4 | ₹0.60 lakh |
| Office furniture | 3 | ₹0.75 lakh |
From: Uttarakhand DUY project profile — Tractor And Ploughing Services
- Diesel, lubricants and spare partsthe profile puts raw materials at ₹4.03 lakh and utilities at ₹4.00 lakh a year
From: Uttarakhand DUY project profile — Tractor And Ploughing Services
§5Licences & registration
- Udyam registration
- GST registration where it applies
- Tractor registration, driving licence and insurance
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP covers service projects up to ₹20 lakh, so this ₹16.38 lakh project fits; MUDRA and CGTMSE help with the tractor loan.
§7Money
How the investment is worked out: DUY profile total ₹16.38 lakh: tractors, implements and furniture ₹15.15 lakh (2 tractors ₹10.00 lakh, 4 ploughs ₹1.00 lakh, 4 disc harrows ₹1.00 lakh, harrows, seed drills, cultivators and fertiliser spreaders ₹0.60 lakh each, office furniture ₹0.75 lakh), preliminary ₹0.17 lakh, working capital ₹1.06 lakh. Promoter ₹6.55 lakh, bank ₹9.83 lakh.
Working capital: Working capital ₹1.06 lakh — diesel and wages in the season.
Year not printed on the DUY (Devbhoomi Udyamita Yojana) profile — check current prices before you buy.
§8Export potential
A local service business — not an export business.
§9Risks — where people fail
- Bad monsoon cutting farm work
- Breakdowns at peak time
- Unpaid dues
- Competition from other tractor owners and custom hiring centres
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working tractor and ploughing hire service unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration where it applies), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Tractor and Ploughing Hire Service?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.
