IMPACT OF FARMER WELFARE SCHEMES ON FINANCIAL STABILITY
IMPACT OF FARMER WELFARE SCHEMES ON FINANCIAL STABILITY
Every year, Government fixes Minimum Support Price (MSP) for 22 mandated agricultural crops, based on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned. Increased MSP has benefitted farmers which are evident from the details of procurement, MSP amount paid to farmers and number of farmers benefitted during 2024-25 (up to June 2025) given below.
Procurement (In Lakh Metric Tonnes) (LMT)
MSP amount paid to famers
(In ₹ lakh Crores)
Number of farmers benefitted
(In ₹ Crores)
1,175
3.33
1.84
The details of achievement under PM-KISAN, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Kisan Credit Card (KCC) are given below.
(In ₹ Crores)
S. No
Year
Disbursement of funds
1
2020-21
17,789.72
2
2021-22
21,476.93
3
2022-23
17,997.88
4
2023-24
14,251.92
5
2024-25
17,811.72
The Agriculture Infrastructure Fund (AIF) is a Central Sector Scheme launched by the Government of India in 2020 under the Atmanirbhar Bharat initiative, with the objective of mobilizing a medium to long-term debt financing facility for investment in viable post-harvest management and community farming assets. The Scheme aims to drive growth and modernization in the agriculture sector by addressing the existing gaps in post-harvest management infrastructure in the country. Under AIF, provision for Rs. 1 Lakh crore loan has been made through lending institutions with interest rate cap of 9% on loans. The Scheme target of Rs 1 lakh crore has been tentatively allocated to all the States and UTs on the basis of the ratio of total value of output of Agriculture and Allied sectors of respective States/UTs.
As on 30th June 2025, Rs. 66,310 crore have been sanctioned for 1,13,419 projects under AIF. These sanctioned projects have mobilized an investment of Rs.107,502 Crore in the agriculture sector. Major projects sanctioned under AIF include 30,202 custom hiring centres, 22,827 processing units, 15,982 warehouses, 3,703 sorting & grading units, 2,454 cold store projects, around 38,251 other kinds of post-harvest management projects and viable farming assets.
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Rajya Sabha today.
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme is a central sector scheme launched in February 2019 to supplement the financial needs of land-holding farmers. Under the scheme, a financial benefit of Rs 6,000/- per year is transferred in three equal installments, into the Aadhaar seeded bank accounts of farmers through Direct Benefit Transfer (DBT) mode. Maintaining absolute transparency in registering and verifying beneficiaries, the Government of India has disbursed over Rs 3.69 lakh Crore through 19 installments since inception.