Development & Policy

Policy Brief: Government of India’s Support to the Agriculture Sector

Government Of India’s Support To The Agriculture Sector
By Admin | Development & Policy

Policy Context

  • Agriculture is a State subject under the Constitution of India.
  • The Government of India supports States through policy measures, budgetary allocations, and Centrally Sponsored Schemes.
  • Objective: Enhance farmers’ income, ensure food security, and promote sustainable agricultural growth.

Budgetary Support

  • Budget allocation for Department of Agriculture & Farmers Welfare (DA&FW) increased significantly:
    • ₹21,933.50 crore (BE) in 2013–14
    • ₹1,27,290.16 crore (BE) in 2025–26
  • Reflects strong policy focus on agriculture and farmer welfare.

Key Schemes and Programmes (Thematic Classification)

1. Income Support and Social Security

  • PM-KISAN – Direct income support to farmers
  • PM-Kisan Maan Dhan Yojana (PM-KMY) – Pension scheme for farmers

2. Risk Management and Credit Support

  • PM Fasal Bima Yojana (PMFBY) / RWBCIS – Crop and weather risk insurance
  • Modified Interest Subvention Scheme (MISS) – Affordable institutional credit
  • PM-AASHA – Price support for agricultural produce

3. Infrastructure and Institutional Strengthening

  • Agriculture Infrastructure Fund (AIF) – Post-harvest and storage infrastructure
  • Formation and Promotion of 10,000 FPOs – Collective bargaining and market access
  • Integrated Scheme for Agriculture Marketing (ISAM) – Market reforms and efficiency

4. Technology, Innovation and Digital Agriculture

  • Digital Agriculture Mission – Data-driven and technology-enabled farming
  • Namo Drone Didi – Use of drones for precision agriculture
  • AgriSURE Fund – Support for agri start-ups and rural enterprises
  • Sub-Mission on Agricultural Mechanization (SMAM) – Farm mechanization

5. Sustainable and Climate-Resilient Agriculture

  • National Mission on Natural Farming (NMNF)
  • Paramparagat Krishi Vikas Yojana (PKVY) – Organic farming
  • Soil Health & Fertility (SH&F) – Soil testing and nutrient management
  • Per Drop More Crop (PDMC) – Micro-irrigation
  • Rainfed Area Development (RAD)
  • Agroforestry

6. Crop and Sector-Specific Missions

  • National Food Security and Nutrition Mission (NFSNM)
  • Mission for Atmanirbharta in Pulses
  • National Mission on Edible Oils (Oil Palm & Oilseeds)
  • Mission for Integrated Development of Horticulture (MIDH)
  • National Bamboo Mission
  • National Bee Keeping and Honey Mission (NBHM)
  • Mission Organic Value Chain Development for North Eastern Region

7. Diversification, Extension and Planning

  • Crop Diversification Programme (CDP)
  • Sub-Mission on Agriculture Extension (SMAE)
  • Rashtriya Krishi Vikas Yojana – DPR (RKVY-DPR)
  • PM Dhan-Dhaanya Krishi Yojana (PMDDKY)

Impact and Outcomes

  • Schemes support small and marginal farmers through:
    • Income support
    • Risk reduction
    • Improved productivity
    • Market access and diversification
  • ICAR has documented 75,000 farmer success stories where income increased more than two times through convergence of DA&FW and allied schemes.

Policy Significance

  • Demonstrates a holistic, convergence-based approach to agricultural development
  • Focus on income enhancement, sustainability, technology adoption, and institutional strengthening
  • Reinforces cooperative federalism while addressing this Sector.

Challenges & Way Forward

Key Challenges

  • Fragmented Land Holdings
    • Majority of farmers are small and marginal, limiting economies of scale and mechanization.
  • Climate Variability and Risk Exposure
    • Increased frequency of droughts, floods, and erratic rainfall affects productivity and income stability.
  • Uneven Implementation Across States
    • Variations in capacity and governance lead to differential outcomes of centrally sponsored schemes.
  • Limited Market Access and Price Realisation
    • Inadequate post-harvest infrastructure, weak value chains, and price volatility reduce farmers’ incomes.
  • Low Technology Adoption
    • Limited access to digital tools, mechanization, and precision farming, especially among smallholders.
  • Input Use Imbalances
    • Excessive use of chemical fertilizers and water leading to soil degradation and declining factor productivity.

Way Forward

  • Strengthen Scheme Convergence
    • Improve coordination among DA&FW schemes and allied ministries to maximize income impact at the farm level.
  • Promote Farmer Collectivization
    • Expand and strengthen FPOs to enhance scale, bargaining power, and access to markets and finance.
  • Accelerate Climate-Resilient Agriculture
    • Scale up natural farming, micro-irrigation, agroforestry, and crop diversification initiatives.
  • Enhance Market Reforms and Infrastructure
    • Invest further in storage, cold chains, processing, and digital marketplaces to improve price realization.
  • Leverage Technology and Digital Platforms
    • Mainstream drones, AI-based advisory services, digital soil mapping, and data-driven decision-making.
  • Capacity Building and Extension
    • Strengthen extension services and skilling programs to improve awareness and adoption of best practice.

Policy Takeaway

A sustained shift from input- and subsidy-driven support to productivity-, market-, and income-led reforms, supported by technology and institutional strengthening, is essential to achieve the goal of doubling farmers’ income and ensuring sustainable agricultural growth.