NEW DELHI, 27 December 2025: The Government of India has significantly expanded financial and policy support for farmers to enhance agricultural sustainability, productivity and income resilience, according to a statement presented in the Rajya Sabha.
While agriculture remains a state subject, the Centre supports states through targeted policy interventions and budgetary allocations. The budget of the Department of Agriculture and Farmers Welfare (DA&FW) has risen sharply from INR 21,933.5 crore in FY2013-14 to INR 1.27 lakh crore in FY2025-26, reflecting a sustained focus on farm-sector reforms, income support and climate resilience.
Access to affordable credit continues to be a key pillar. Under the Modified Interest Subvention Scheme (MISS), farmers avail crop loans through the Kisan Credit Card (KCC) at a subsidised interest rate of 7%. An upfront interest subvention of 1.5% is provided to lending institutions, while farmers repaying loans on time receive a 3% prompt repayment incentive, reducing the effective interest rate to 4% per annum on loans up to INR 3 lakh.
Risk mitigation is addressed through the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS), both operational since Kharif 2016. The schemes provide comprehensive coverage from pre-sowing to post-harvest losses arising from natural calamities and adverse weather events, with PMFBY remaining voluntary for both states and farmers.
Direct income support is delivered through PM-KISAN, under which eligible landholding farmers receive INR 6,000 annually in three instalments. Since inception, over INR 4.09 lakh crore has been transferred directly to farmers through 21 instalments.
The government is also investing in value addition and diversification. Under the Mission for Integrated Development of Horticulture (MIDH), support is provided for setting up primary and mini processing units, along with training and exposure programmes to familiarise farmers with modern horticulture practices and nearby food processing infrastructure.
Mechanisation and technology adoption are being scaled through the Sub-Mission on Agricultural Mechanization (SMAM), now part of PM-RKVY, promoting custom hiring centres, high-value machinery hubs and the use of advanced tools such as drones. Parallelly, Krishi Vigyan Kendras (KVKs) play a central role in disseminating climate-resilient technologies, quality seeds and modern farming practices.
To address climate risks, initiatives such as Gramin Krishi Mausam Sewa (GKMS), National Innovations in Climate Resilient Agriculture (NICRA) and micro-irrigation under Per Drop More Crop (PDMC) are improving weather preparedness, water efficiency and adaptive capacity at the farm level.
The update was shared by Minister of State for Agriculture and Farmers Welfare Ramnath Thakur in a written reply to the Rajya Sabha.
