Top 14 Agricultural Subsidies and Schemes farmers in India : Benefits and Importance

A Comprehensive Guide To Agricultural Subsidies And Schemes In India

Despite being the foundation of India’s economy, agriculture sustains countless livelihoods and faces challenges from market fluctuations and unpredictable weather. The government has introduced subsidies and schemes to support farmers and address these issues, fostering sustainable practices, boosting productivity, and uplifting rural living standards.

Top 14 Agricultural Subsidies And Schemes In India

1. Rashtriya Krishi Vikas Yojana

The Rashtriya Krishi Vikas Yojana (RKVY) is a crucial agricultural scheme in India that provides 100 % subsidy depending on the continued project. It promotes holistic development in the farming sector. It focuses on enhancing productivity and sustainability while ensuring the welfare of farmers.RKVY is pivotal in empowering farmers with resources and knowledge, bolstering rural economies, reducing regional disparities, and ensuring food security. Its impact contributes significantly to the growth and development of the agricultural landscape.

2. National Food Security Mission 

The National Food Security Mission, launched in 2007, aims to boost rice, wheat, and pulse production, expand cultivation, restore soil fertility, and improve farmers’ economic conditions. The mission continued during the 12th Five-Year Plan, targeting an additional 25 million tonnes of food grains. Beyond the 12th Plan, new targets were set to produce 13 million tonnes of food grains, focusing on value addition and efficient market linkages. Production targets are now set annually.

3. Sub-Mission On Agricultural Mission 

In 2014-15, the Ministry of Agriculture and Farmers’ Welfare, GOI, initiated the Sub-Mission on Agricultural Mechanization (SMAM). Its primary objective is to extend the benefits of farm mechanisation to marginal and small-scale farmers, as well as regions with limited power availability. The SMAM scheme includes both centrally sponsored and central sector components. The Government of India funds 60% of most states, while the state’s share is 40%. However, the GOI covers 90% of the costs in the northeastern and Himalayan states.

4. PM Kissan Scheme

The PM-Kisan Yojana, also known as the Pradhan Mantri Kisan Samman Nidhi Yojana, is a government initiative to provide minimum income support of up to Rs 6,000 per year to small and marginal farmers. The PM Kisan scheme is a Central Sector initiative that receives full funding from the Government of India. On February 24, 2019, Prime Minister Narendra Modi inaugurated the PM-KISAN scheme, which had been implemented since December 1, 2018.

5. Neem Coated Urea 

A significant transformative measure implemented by the Modi Government was the introduction of 100% Neem Coating on all subsidised agricultural-grade urea nationwide. This step aimed to enhance nutrient efficiency, boost crop yield, improve soil health, and prevent the misuse of agricultural-grade urea for non-agricultural purposes. Neem-Coated Urea, an agricultural initiative backed by the Government of India, serves as both a fertiliser and a scheme to enhance wheat and paddy growth while addressing issues like the black market and urea hoarding. This specialised urea, coated with neem tree seed oil, is called neem-coated urea.

6.Pradhan Mantri Kisan Madan Yojana

The Pradhan Mantri Kisan Maan Dhan Yojana, launched by Prime Minister Narendra Modi in Ranchi, is a Central Sector Scheme administered by the Cooperation & Farmers Welfare Department, in collaboration with LIC, providing a monthly pension of Rs. 3000/- to small and marginal farmers (up to 2 hectares of land) after they turn 60, aiming to ensure their financial security. If the beneficiary dies before retirement, the spouse can continue or receive the contribution with interest. If there is no spouse, the nominee gets it. After retirement, the spouse receives 50% as Family Pension. After both pass away, the amount returns to the Pension Fund.

7.Pradhan Mantri Fasal Bima Yojana

 The PM Fasal Bima Yojana (PMFBY), launched by the Ministry of Agriculture, has benefited 70,27,637 farmers across 5 seasons, with a total premium of Rs. 2362 Crores. Claims of Rs. 1703 crores have been paid, helping 17,66,455 farmers. Claims for Kharif 18 and Rabi 18 are underway. The PM Fasal Bima Yojana (PMFBY) supports farmers by offering financial aid for crop loss, stabilising income, promoting modern practices, facilitating credit flow, and providing insurance against production risks.

8. Kisan Credit Card Scheme

The Kisan Credit Card (KCC) scheme, introduced in 1998, aims to provide farmers with uniform access to credit through these cards. Farmers can easily purchase agriculture inputs like seeds, fertilisers, and pesticides and also access cash for their production needs. The scheme was expanded in 2004 to cover investment credit for allied and non-farm activities. A revision occurred in 2012, led by a working group chaired by Shri T. M. Bhasin, CMD of Indian Bank, aimed at simplifying the scheme and enabling the issuance of Electronic Kisan Credit Cards. While the plan provides overarching guidelines, implementing banks can tailor them to their needs.

9. Pashu Kisan Credit Card Scheme

The ‘Pashu Kisan Credit Card’ is an initiative by the Indian government to aid animal husbandry farmers, stimulating sector growth and increasing farmer income. Under this scheme, livestock owners can access loans up to Rs. 3 lahks, with specific amounts allocated for different categories. Loans are available at an interest rate of 4.00%, and repayment is within five years, distributed in six equal instalments. The Central Government provides a 3.00% rebate.

10. Soil Health Card

The Soil Health Cards (SHCs) Scheme launched in 2014-15 aimed to provide essential soil information to all farmers. It integrates GIS in the portal and enhances the mobile application for efficient sample collection and results. This new system started in April 2023, and Soil Health Cards are generated through the revamped portal. Additionally, the Soil Health Card scheme is now a part of the Rashtriya Krishi Vikas Yojana (RKVY) under the name ‘Soil Health & Fertility’ from 2022-23.

11.Paramparagat Krishi Vikas Yojana

Launched in 2015, the Pradhan Mantri Krishi Vikas Yojana (PMKY) promotes key aspects: organic farming, reduced dependency on synthetics, improved soil health, increased yields, and modern marketing strategies. The revamped approach emphasises cluster-based “organic village” promotion, incorporating the Participatory Guarantee System for certification, prioritising sustainability in agriculture.

12.Gramin Bhandaran Yojana

The Gramin Bhandaran Yojana, established in 2001, offers capital investment subsidies for constructing and refurbishing rural godowns outside municipal limits. Its main goal is to create a strong network of storage facilities in rural areas. It prevents distressed sales by providing marketing credit and pledge financing, enhancing storage for farm produce, and promoting standardised products. By extending subsidies to the cooperative and private sectors, the scheme aims to counter the declining investment ratio in the agricultural industry in India.

13. Rashtriya Krishi Vikas Yojana

The Rashtriya Krishi Vikas Yojana (RKVY), introduced in 2007, aimed for 4% annual agricultural growth. RAFTAAR had a runtime until 2019-20, operating with a budget of Rs 15,722 crore. The scheme responded to slow growth in agriculture and sought to reorient strategies to meet farmers’ needs, offering states flexibility in planning and incentivising agricultural and allied sector investments. This approach included decentralised planning with the State Agriculture Plan (SAP) and District Agriculture Plans (DAPs), catering to agro-climatic conditions and local requirements.

14. Krishi Bhagya

The Government of Karnataka launched the Krishi Bhagya Scheme for dry-land farmers reliant on annual rainfall. Over 100,000 farmers in 131 taluks across 25 districts have received ₹968.37 crores in financial aid to implement effective rainwater conservation measures, ensuring sustainable agriculture in rain-fed areas. The scheme spans five agro-climatic zones, aiding over one lakh farmers annually with grants for farm ponds, water extraction, and modern technology to enhance crop yields and income, including poly houses and shade nets for hybrid vegetables and flowers.

Conclusion : 

In conclusion, agricultural subsidies and schemes are pivotal in India’s rural landscape. They foster sustainable growth, enhance farmer livelihoods, and ensure food security. These initiatives underscore the government’s commitment to the welfare of its agricultural community and the nation’s overall development.