Agriculture Minister Shivraj Singh Chouhan promises farmers an interest rate of 12% on their delayed crop insurance claims.
India's Agricultural Transformation: Boosting Farmers' Incomes and Crop Outputs
Over the past decade, the Indian government has made significant strides in agricultural production and institutional support, collectively enhancing farmers' income and boosting crop outputs across various sectors.
One of the key initiatives has been the PM-Kisan scheme, launched in February 2019. This direct income support program for farmers has benefited nearly 10 crore beneficiaries, who receive Rs 6,000 annually in three installments of Rs 2,000 each. As of July 2025, over Rs 3.69 lakh crore has been disbursed through 19 installments, with a recent saturation drive adding more than one crore eligible farmers, increasing recipients to about 9.59 crore. The scheme has helped alleviate credit constraints, supported agricultural inputs, and even met other expenses like education and healthcare, enhancing farmers’ economic resilience.
Beyond PM-Kisan, total crop production in India has increased significantly. From 246.42 million tonnes in 2013–14, it has risen to 353.96 million tonnes currently. Notably, pulses production has risen from 16.38 million tonnes to 25.24 million tonnes, oilseeds from 27.51 million tonnes to 42.61 million tonnes, and horticulture from 280.70 million tonnes to 367.72 million tonnes.
Milk production has also surged, showcasing diversified rural income generation. Institutional credit for farmers has tripled, expanding from Rs 7 lakh crore to Rs 25 lakh crore over the decade, and the agriculture budget grew from Rs 27,000 crore during UPA to Rs 1.27 lakh crore currently.
The government's six-pronged strategy for agriculture and rural development focuses on increasing output, reducing input costs, ensuring fair prices for produce, compensating losses, promoting crop diversification (including horticulture, fisheries, and livestock), and encouraging sustainable natural farming with balanced fertilizer use.
Significant progress has also been made in institutional support. The PM-AASHA scheme ensures procurement of pulses and oilseeds like tur, masoor, and urad at 100% Minimum Support Price (MSP). The Nepali parliamentary delegation visited Krishi Bhawan in New Delhi to explore India's agricultural advancements.
To further enhance transparency and speed up compensation under the Pradhan Mantri Fasal Bima Yojana (PMFBY), the government is rolling out YESTECH, a satellite-based technology system for digital crop loss estimation. If insurers or state governments delay compensation beyond 21 days, they must pay 12% interest, which will be credited directly to farmers' accounts. Since its launch in 2016, PMFBY has paid out Rs 1.83 lakh crore in claims against a premium collection of Rs 35,000 crore.
MSP rates for several crops have more than doubled since 2013-14. For instance, paddy's MSP has risen from 1,310 to 2,369, Bajra from 1,250 to 2,775, Ragi from 1,500 to 4,886, and so on. The government has ensured a 50% profit margin over cost in MSP for crops.
In conclusion, the Indian government's flagship schemes, broader crop production initiatives, and integrated programs have collectively contributed to a significant boost in farmers' income, crop outputs, and institutional support, including financing and infrastructure.
The Indian government's efforts in agriculture have extended to financing and business aspects, as seen in the tripling of institutional credit for farmers over the decade, expanding from Rs 7 lakh crore to Rs 25 lakh crore. Moreover, the agriculture budget has grown from Rs 27,000 crore during UPA to Rs 1.27 lakh crore currently.
