The Government of India announces the Minimum Support Price (MSP) every year for 22 essential agricultural crops. This decision is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), along with feedback from states and concerned ministries. To ensure transparency and timely payments, the MSP procurement process has been fully integrated with digital payment systems.
Currently, the Department of Agriculture and Farmers’ Welfare does not operate any loan waiver scheme. However, farmers continue to receive strong financial support through MSP, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), the Modified Interest Subvention Scheme (MISS), and the Agriculture Infrastructure Fund (AIF).
For the financial year 2024–25 (July to June), procurement and payments under MSP stand as follows:
Procurement: 1,175 lakh metric tonnes
Payments to farmers: ₹3.33 lakh crore
Beneficiary farmers: 1.84 crore
Launched in February 2019, this central scheme provides financial assistance of ₹6,000 annually to every landholding farmer, disbursed in three equal installments via Direct Benefit Transfer (DBT). So far, through 19 installments, ₹3.69 lakh crore has been transferred directly to farmers’ bank accounts.
Implemented from Kharif 2016, this crop insurance scheme provides financial assistance against natural disasters and adverse weather. Between 2016 and 30 June 2025, farmers paid a cumulative premium of ₹35,753 crore, against which claims worth ₹1.83 lakh crore were settled almost five times the amount of premium collected.
Modified Interest Subvention Scheme (MISS):
This scheme provides concessional interest rates on short-term working capital loans taken through Kisan Credit Cards (KCC). Fund disbursements in the past five years are as follows:
Launched in 2020 under the Atmanirbhar Bharat Abhiyan, AIF aims to boost long-term investment in the agriculture sector. A credit facility of ₹1 lakh crore has been provisioned under the scheme. As of 30 June 2025, loans worth ₹66,310 crore have been sanctioned for 1,13,419 projects, attracting an overall investment of ₹1,07,502 crore in agriculture.
Key projects supported under AIF include:
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