This report from the Ministry of Agriculture & Farmers Welfare, dated August 1, 2025, summarizes the impact of key farmer welfare schemes on financial stability.
**Minimum Support Price (MSP):** The government sets MSPs for 22 mandated crops annually based on recommendations from the Commission for Agricultural Costs & Prices (CACP). In 2024-25 (up to June 2025), procurement reached 1,175 Lakh Metric Tonnes (LMT), benefiting 3.33 lakh farmers, with an MSP amount paid of ₹1.84 lakh Crores.
**Key Schemes & Achievements:**
* **PM-KISAN:** Under the Pradhan Mantri Kisan Samman Nidhi (PMKISAN) scheme, initiated in February 2019, ₹6,000 per year is disbursed in three installments to farmers' Aadhaar-linked accounts via Direct Benefit Transfer (DBT). As of the report date, over ₹3.69 lakh Crore has been disbursed through 19 installments.
* **PMFBY:** The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in Kharif 2016, provides financial support to farmers facing crop loss due to natural calamities. Farmers paid ₹35,753 Crore in premiums and received ₹1.83 lakh Crore in claims as of June 30, 2025, roughly 5 times the farmer premium paid during the same period.
* **Kisan Credit Card (KCC):** The Modified Interest Subvention Scheme (MISS), a 100% centrally funded program, provides concessional interest rates on short-term agricultural loans via Kisan Credit Cards (KCC). Disbursements under MISS for the past five years are as follows:
* 2020-21: ₹17,789.72 Crores
* 2021-22: ₹21,476.93 Crores
* 2022-23: ₹17,997.88 Crores
* 2023-24: ₹14,251.92 Crores
* 2024-25: ₹17,811.72 Crores
* **Agriculture Infrastructure Fund (AIF):** The Agriculture Infrastructure Fund, launched in 2020 under the Atmanirbhar Bharat initiative, aims to provide debt financing for post-harvest management and community farming assets. AIF has provisioned ₹1 lakh crore loan through lending institutions with interest rate cap of 9% on loans. As of June 30, 2025, ₹66,310 crore has been sanctioned for 1,13,419 projects, mobilizing an investment of ₹107,502 Crore. Projects include 30,202 custom hiring centers, 22,827 processing units, 15,982 warehouses, 3,703 sorting grading units, 2,454 cold store projects and 38,251 other post-harvest management projects.
This information was provided by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Rajya Sabha.
Release ID: 2151345
Key Entities Referenced
Minimum Support Price: A price fixed by the Government to purchase crops from the farmers.
Commission for Agricultural Costs Prices: The commission that recommends the MSP for agricultural crops.
PMKISAN: Pradhan Mantri Kisan Samman Nidhi, a central sector scheme to supplement the financial needs of landholding farmers.
Pradhan Mantri Fasal Bima Yojana: A scheme to provide financial support to farmers suffering crop loss or damage.
Kisan Credit Card: A scheme to provide concessional interest rates on short-term agricultural loans.
Modified Interest Subvention Scheme: A centrally funded scheme that provides concessional interest rates on short-term agricultural loans obtained through Kisan Credit Cards.
Agriculture Infrastructure Fund: A Central Sector Scheme launched by the Government of India under the Atmanirbhar Bharat initiative, to mobilize debt financing for investment in post-harvest management and community farming assets.
Rajya Sabha: Council of States; the Upper House of the Parliament of India
Ministry of Agriculture & Farmers Welfare
IMPACT OF FARMER WELFARE SCHEMES ON
FINANCIAL STABILITY
Posted On: 01 AUG 2025 4:31PM by PIB Delhi
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.
Number of farmers
Procurement (In Lakh MSP amount paid to famers
benefitted
Metric Tonnes) (LMT) (In ₹ lakh Crores)
(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.
i. 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.
ii. The Pradhan Mantri Fasal Bima Yojna (PMFBY) was introduced in the country from Kharif 2016
season. The scheme provides financial support to farmers suffering crop loss/damage arising out of
natural calamities, adverse weather incidence and to stabilize the income of farmers etc. Since inception
of the scheme in 2016, farmers paid a total premium of Rs 35,753 Crore Rupees and have received
claims of Rs 1.83 lakh Crore Rupees (as on 30.06.2025), which is roughly 5 times the farmers premium
paid during the same period.
iii. The Kisan Credit Card (KCC): The government is implementing a 100% centrally funded Central
Sector Scheme known as the Modified Interest Subvention Scheme (MISS) across various States and
UTs in India. This scheme aims to provide concessional interest rates on short-term agricultural loans
obtained by farmers through Kisan Credit Cards (KCC) for their working capital requirements. The
details disbursement of funds under Modified Interest Subvention Scheme (MISS) during the last five
years is 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.
th
As on 30 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.
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RC/ KSR/AR
(Release ID: 2151345)