The Government of India continues to strengthen the agricultural sector through a comprehensive framework of Minimum Support Prices (MSPs) and farmer welfare schemes, ensuring income stability, financial support, and infrastructure development across the country.
Every year, MSPs are fixed for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP) after consultations with State Governments and Central Ministries. To maintain transparency and efficiency, the Government has implemented a digital payment system for MSP procurement.
During 2024–25 (July–June), MSP procurement reached 1,175 Lakh Metric Tonnes (LMT). Farmers received ₹3.33 lakh crore in MSP payments, benefitting 1.84 crore farmers across India.
While there is currently no loan waiver scheme under the Department of Agriculture & Farmers Welfare, farmers are supported through a structured safety net of major schemes:
- PM-Kisan Samman Nidhi (PM-Kisan): Launched in 2019, the scheme provides land-holding farmers with ₹6,000 annually in three installments through Direct Benefit Transfer (DBT). To date, the Government has disbursed ₹3.69 lakh crore across 19 installments, ensuring transparency and timely payments.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Introduced in 2016, PMFBY provides crop insurance against natural calamities and adverse weather. Since its inception, farmers have paid ₹35,753 crore in premiums, while receiving ₹1.83 lakh crore in claims—nearly five times the premium paid—benefiting millions of cultivators (as of June 30, 2025).
- Modified Interest Subvention Scheme (MISS): A 100% centrally funded scheme, MISS offers concessional interest rates on short-term agricultural loans through Kisan Credit Cards (KCCs). In the last five years, disbursements have ranged from ₹14,251.92 crore in 2023–24 to ₹21,476.93 crore in 2021–22, with ₹17,811.72 crore disbursed in 2024–25.
- Agriculture Infrastructure Fund (AIF): Launched in 2020 under the Atmanirbhar Bharat initiative, AIF provides medium to long-term debt financing for post-harvest management and community farming assets. With a total loan provision of ₹1 lakh crore at capped interest rates, the scheme has already sanctioned ₹66,310 crore for 1,13,419 projects, mobilizing ₹1,07,502 crore in investments. Major projects include 30,202 custom hiring centres, 22,827 processing units, 15,982 warehouses, 3,703 sorting & grading units, 2,454 cold storage projects, and 38,251 other post-harvest management assets.
Through this multi-layered support system, the Government is addressing farmers’ financial vulnerabilities, ensuring fair returns, risk protection, credit access, and infrastructure development. Together, MSP and allied schemes are building a stronger, more resilient, and modern agricultural sector for India.
By
