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Central Schemes like MSP, PM-KISAN, Insurance, KCC, and Infrastructure Fund Benefit Crores of Farmers

Government schemes supporting Indian agriculture
Government schemes supporting Indian agriculture

Every year, the Government of India announces the Minimum Support Price (MSP) for 22 notified agricultural crops. These prices are fixed based on the recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering inputs from State Governments and relevant Central Ministries. For the financial year 2024–25 (up to June 2025), the government’s MSP procurement and farmer support has been significant:

Procurement: 1,175 Lakh Metric Tonnes
MSP Payment to Farmers: ₹3.33 Lakh Crore
Number of Beneficiary Farmers: 1.84 Crore

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):

Launched in February 2019, PM-KISAN is a Central Sector Scheme that provides financial assistance of ₹6,000 per year to landholding farmers in three equal instalments. The amount is directly transferred to Aadhaar-linked bank accounts of beneficiaries through Direct Benefit Transfer (DBT).
As of now, ₹3.69 Lakh Crore has been disbursed across 19 instalments under this scheme.

Pradhan Mantri Fasal Bima Yojana (PMFBY):

Introduced in Kharif 2016, PMFBY offers crop insurance to safeguard farmers against crop loss due to natural calamities and adverse weather.
Up to June 2025, farmers have paid a total premium of ₹35,753 Crore under the scheme and have received claim payouts worth ₹1.83 Lakh Crore — which is approximately 5 times the total premium paid.

Kisan Credit Card (KCC):

The Modified Interest Subvention Scheme (MISS), the Government provides short-term agricultural loans at concessional interest rates to farmers through Kisan Credit Cards (KCC).
The fund disbursed over the last five years under MISS is as follows:

Year Fund Disbursed (₹ Crore)
2020–21 17,789.72
2021–22 21,476.93
2022–23 17,997.88
2023–24 14,251.92
2024–25 17,811.72

Agriculture Infrastructure Fund (AIF):

Launched in 2020 under the Atmanirbhar Bharat initiative, the AIF aims to provide medium to long-term debt financing for investments in post-harvest management infrastructure and community farming assets.
Under this scheme, loans of up to ₹1 Lakh Crore have been provisioned with an interest rate cap of 9%.
As of June 30, 2025, loans worth ₹66,310 Crore have been sanctioned for 1,13,419 projects under AIF. These projects have collectively attracted investments worth ₹1.07 Lakh Crore in the agriculture sector.

Key projects sanctioned include:

  1. 30,202 Custom Hiring Centres
  2. 22,827 Processing Units
  3. 15,982 Warehouses
  4. 3,703 Sorting & Grading Units
  5. 2,454 Cold Storage Projects
  6. 38,251 Other Post-Harvest Management and Farming Assets
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