Context of the News
India’s agricultural sector has undergone a major transformation over the last 12 years, moving beyond traditional welfare support toward income security, market reforms, technology adoption, infrastructure development, and climate resilience.
Flagship schemes such as PM-KISAN, PMFBY, e-NAM, Agriculture Infrastructure Fund (AIF), PM-KUSUM, and MSP reforms have played a crucial role in improving farmers’ livelihoods and strengthening agricultural growth.
Background
Agriculture remains the backbone of India’s rural economy.
Despite rapid industrialization and growth of the services sector, agriculture continues to:
- Support nearly half of India’s workforce.
- Ensure food security for over 1.4 billion people.
- Contribute significantly to exports and rural employment.
- Provide raw materials for industries.
Since 2014, policy reforms have increasingly focused on:
- Farmer welfare
- Risk mitigation
- Digital agriculture
- Infrastructure creation
- Sustainable farming practices
News Breakdown
Current Status of Agriculture in India
1. Growth and Economic Contribution
Agriculture continues to be a major pillar of India’s economy.
Key Facts
| Indicator | 2014-15 | 2023-24/2024-25 |
|---|---|---|
| Agriculture & Allied Sector GVA | ₹20.9 lakh crore | ₹48.7 lakh crore |
| Crop Sector GVA | ₹12.92 lakh crore | ₹26.52 lakh crore |
| CAGR | — | 8.83% |
Budgetary Support
Government allocation for agriculture increased significantly:
| Year | Allocation |
| 2013-14 | ₹27,663 crore |
| 2026-27 | ₹1,40,528.78 crore |
This reflects increased investment in:
- Infrastructure
- Irrigation
- Farmer support schemes
- Technology adoption
2. Crop Production and Food Security
India has substantially improved agricultural output.
Foodgrain Production
| Year | Production |
| 2013-14 | 265.05 Million Tonnes (MT) |
| 2024-25 | 357.73 MT |
Major Achievements
Rice
- India became the largest rice producer in the world.
- Rice production increased by 42.38% since 2014-15.
Wheat
- Record production of 117.94 MT in 2024-25.
Maize
- Production increased by nearly 79%.
Millets (Shree Anna)
Shree Anna refers to nutritious coarse cereals such as millets.
Promoted because of:
- Climate resilience
- Low water requirement
- High nutritional value
Oilseed Production
| Indicator | Value |
| 2014-15 | 27.51 MT |
| 2024-25 | 42.99 MT |
Growth:
- Increase of 56%
Edible Oil Import Dependence
| Year | Dependence |
| 2015-16 | 63.2% |
| 2023-24 | 56.25% |
This indicates gradual progress toward self-reliance.
Horticulture Growth
The horticulture sector now contributes:
- Nearly 37% of Gross Value Output (GVO) of the crop sector.
Growth drivers:
- Fruits
- Vegetables
- Flowers
- Spices
- Better market demand
3. Farmer Welfare and Social Security
PM-KISAN
What is PM-KISAN?
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides:
- ₹6,000 annually
- Direct Benefit Transfer (DBT)
- Paid in three installments
Achievements
- Benefited over 9.44 crore farmers
- More than 25% beneficiaries are women
PMFBY
What is PMFBY?
Pradhan Mantri Fasal Bima Yojana (PMFBY) provides affordable crop insurance.
Coverage
- Pre-sowing losses
- Standing crop losses
- Post-harvest losses
Reach
- More than 4 crore farmers insured annually
Key Principle
One Nation, One Crop, One Premium
PM-KMY
What is PM-KMY?
Pradhan Mantri Kisan Maan-Dhan Yojana
Provides:
- Pension of ₹3,000 per month
- After age 60 years
Coverage
- 24.95 lakh farmers enrolled (February 2026)
4. MSP and Procurement Reforms
What is MSP?
Minimum Support Price (MSP) is the guaranteed price announced by the government for selected crops.
Key Facts
- MSP announced for 22 mandated crops
- Since 2018-19, MSP fixed at least 50% above production cost
Procurement Expansion
The total MSP procurement value during:
| Period | Relative Growth |
| 2014-2026 | 3.5 times higher |
| Compared to | 2004-2014 |
This has enhanced market assurance for farmers.
5. Diversification into Allied Sectors
Livestock Sector
| Indicator | 2014-15 | 2026-27 |
| Livestock GVA | ₹5.10 lakh crore | ₹15.06 lakh crore |
Milk Production
India remains the world’s largest milk producer.
| Year | Production |
| 2014-15 | 146.31 MT |
| 2024-25 | 247.87 MT |
Poultry and Meat
Growth
| Product | Increase |
| Eggs | 78.48 billion → 149.11 billion |
| Meat | 6.69 MT → 10.50 MT |
Supported by:
- National Livestock Mission (NLM)
Fisheries and Aquaculture
Supported through:
PMMSY
Pradhan Mantri Matsya Sampada Yojana
Achievements:
- Production increased from 9.58 MT to 19.78 MT
- 2,195 Fisheries FPOs formed
- 4.39 lakh fishers covered under KCC
Beekeeping and Bio-Energy
National Beekeeping & Honey Mission (NBHM)
Honey production:
| Year | Production |
| Earlier | 0.081 MT |
| Present | 0.152 MT |
Ethanol Blending
| Indicator | Value |
| Procurement | 38 crore litres → 904 crore litres |
| Blending Achieved | 20% |
6. Technology and Digital Agriculture
Digital Agriculture Mission
Achievements:
- 7.63 crore Farmer IDs
- 23.5 crore digitized crop plots
Benefits:
- Better targeting
- Transparency
- Faster service delivery
AgriStack
Components
- Farmer Registry
- Digital Crop Survey
- Geo-referenced Land Records
Benefits:
- Data-driven planning
- Improved beneficiary identification
Kisan e-Mitra
AI-based advisory platform providing:
- Weather information
- Pest management
- Crop guidance
- Scheme details
Drone Revolution
Namo Drone Didi Scheme**
Promotes:
- Precision agriculture
- Crop monitoring
- Pesticide spraying
- Women-led entrepreneurship
7. Sustainable Agriculture
PM-KUSUM
Objective
Promote renewable energy in agriculture.
Achievements
- 10 lakh standalone solar pumps installed
- 13 lakh pumps solarized
Soil Health Cards
Achievement
- Over 26 crore Soil Health Cards issued
Benefits:
- Balanced fertilizer use
- Improved soil productivity
Organic and Natural Farming
Major Schemes:
- PKVY
- MOVCDNER
- NMNF
Promote:
- Organic farming
- Chemical-free agriculture
- Sustainable farming systems
Climate-Resilient Agriculture
Achievements:
- 2,996 climate-resilient crop varieties released
- 448 climate-resilient villages
- 1.04 lakh farm households under Integrated Farming Systems
PMKSY
Per Drop More Crop
Focuses on:
- Micro-irrigation
- Efficient water use
- Climate resilience
8. Agricultural Credit and Institutional Support
Kisan Credit Card (KCC)
Provides:
- Short-term agricultural loans
- Investment support
- Credit for allied activities
Ground Level Credit
| Year | Credit |
| 2013-14 | ₹7.30 lakh crore |
| 2024-25 | ₹28.67 lakh crore |
Cooperative Reforms
PACS Modernization
Achievements:
- 79,630 PACS computerized
- 61,866 PACS on ERP systems
Farmer Producer Organisations (FPOs)
Achievement
- 10,000 FPOs registered
Benefits:
- Collective bargaining
- Better market access
- Reduced transaction costs
9. Market Reforms and Infrastructure
e-NAM
What is e-NAM?
National Agriculture Market (e-NAM) is a digital trading platform connecting agricultural markets across India.
Achievements
- 1,656 mandis integrated
- 1.8 crore farmers registered
- 4,724 FPOs onboarded
Agriculture Infrastructure Fund (AIF)
Supports:
- Warehouses
- Cold chains
- Logistics
- Processing units
Achievements
| Indicator | Value |
| Projects | 1.68 lakh |
| Sanctioned Amount | ₹84,202 crore |
| Total Investment Mobilized | ₹1.33 lakh crore |
Mega Food Parks
Growth
| 2014 | 2025 |
| 2 Parks | 41 Parks |
Benefits:
- Reduced wastage
- Value addition
- Better farmer-market linkage
Agricultural Exports
| Year | Export Value |
| 2013-14 | USD 37.29 Billion |
| 2024-25 | USD 51.1 Billion |
Processed Products
Share increased from:
- 13.7% → 20.4%
Seafood Exports
- Doubled from USD 3.64 billion to USD 7.52 billion
Exports reach over 130 countries.
Key Challenges Facing Farmers
Income and Market Risks
- Price volatility
- Market uncertainty
- Low bargaining power
Important Fact
- Small and marginal farmers constitute 86% of operational holdings.
Limited MSP Reach
MSP benefits remain concentrated in:
- Punjab
- Haryana
- Western Uttar Pradesh
Many farmers growing:
- Pulses
- Oilseeds
- Fruits
- Vegetables
still sell below remunerative prices.
Climate Risks
Major threats:
- Droughts
- Floods
- Cyclones
- Pest attacks
- Heat stress
Credit Constraints
Issues continue in:
- Remote areas
- Tribal regions
- Marginal farming communities
Resource Constraints
Challenges include:
- Groundwater depletion
- Soil degradation
- Excessive urea use
- Micronutrient deficiencies
Measures Needed for Farmer Empowerment
Strengthen Income Support
- Expand PM-KISAN coverage.
- Ensure timely DBT transfers.
Improve Risk Management
- Broaden PMFBY coverage.
- Faster claim settlements.
Expand Agricultural Credit
- Increase KCC penetration.
- Affordable formal credit access.
Build Post-Harvest Infrastructure
- Expand AIF projects.
- Strengthen cold chains and logistics.
Promote Digital Agriculture
- Scale up AgriStack.
- Expand Kisan e-Mitra and Drone services.
Encourage Sustainable Farming
- Promote organic farming.
- Expand climate-resilient varieties.
- Improve water-use efficiency.
Prelims Focus
High-Value Facts
- Agriculture contributes around 18% of India’s GVA.
- PM-KISAN provides ₹6,000 annually via DBT.
- MSP is announced for 22 mandated crops.
- India is the world’s largest milk producer.
- e-NAM currently connects 1,656 mandis.
- PM-KUSUM promotes solarization in agriculture.
- AgriStack includes Farmer Registry and Digital Crop Surveys.
- PMMSY focuses on fisheries and aquaculture.
- FPO stands for Farmer Producer Organisation.
- Soil Health Card Scheme promotes balanced nutrient application.
Conclusion
Farmer empowerment requires integrating income security, climate resilience, technology adoption, market reforms, infrastructure expansion, and sustainable agriculture into a comprehensive growth strategy.
Prelims Check
Question 1
Consider the following statements regarding agricultural reforms in India:
- PM-KISAN provides direct income support of ₹6,000 annually to eligible farmer families.
- MSP is currently announced for 22 mandated crops.
- PMFBY covers only standing crop losses and excludes post-harvest losses.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Question 2
Consider the following pairs:
| Scheme | Objective |
| 1. PM-KUSUM | Solarization of agriculture |
| 2. PMMSY | Fisheries development |
| 3. AIF | Crop insurance |
| 4. e-NAM | Digital agricultural trading |
How many pairs are correctly matched?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Question 3
Consider the following statements:
- AgriStack includes a Farmer Registry and digital crop surveys.
- Small and marginal farmers constitute about 86% of operational holdings in India.
- Horticulture contributes nearly 37% of the crop sector’s Gross Value Output.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answers and Explanations
Q1. Answer: (a) 1 and 2 only
Explanation
- PM-KISAN provides ₹6,000 annually through DBT.
- MSP is announced for 22 mandated crops.
- PMFBY covers pre-sowing, standing crop and post-harvest losses.
Q2. Answer: (c) Only three
Explanation
- PM-KUSUM promotes renewable energy in agriculture.
- PMMSY supports fisheries and aquaculture.
- AIF supports agricultural infrastructure, not crop insurance.
- e-NAM is a digital agricultural trading platform.
Q3. Answer: (d) 1, 2 and 3
Explanation
- AgriStack includes Farmer Registry and digital crop surveys.
- Small and marginal farmers account for approximately 86% of holdings.
- Horticulture contributes nearly 37% of crop sector Gross Value Output.
“The future of agriculture belongs not only to those who cultivate the land, but to those who continuously innovate, adapt, and persevere.”
