Is the subsidy calculated on the dealer's price or on a fixed government rate?

For almost all equipment, irrigation and structure subsidies, the subsidy is calculated on a fixed government cost norm, not on whatever a dealer quotes. The department fixes a unit cost, for example a per hectare cost for drip or a per square metre cost for a polyhouse, and applies the subsidy percentage to that norm. So if the cost norm for your drip is fixed and the subsidy is, say, half of it, you get half of the norm regardless of whether your dealer charges more. If the dealer's price is above the norm, you pay the entire excess yourself, the subsidy does not rise to match it. If the dealer's price happens to be below the norm, the subsidy is capped at the actual price you paid, you cannot profit from the difference. This is exactly why comparing dealers matters: pick a quality supplier whose price is close to the norm so your out of pocket share is small. Find the current cost norm for your item and category on your state portal before you choose a dealer, and ask the dealer to quote against that norm.