**Policy Summary: Enhancing Income for Small and Marginal Farmers in India**
This policy addresses the Indian government's initiatives to increase the real income of small and marginal farmers. According to the National Statistics Office's (NSO) Situation Assessment Survey (SAS) of Agricultural Households, the average monthly income per agricultural household in rural areas was ₹10,218 during the agricultural year July 2018-June 2019.
The Ministry of Agriculture and Farmers Welfare has implemented a multi-pronged strategy to enhance farmers' income, focusing on: 1) increasing crop production and productivity; 2) reducing the cost of production; 3) ensuring better price realization; 4) promoting agricultural diversification; 5) developing post-harvest value addition; and 6) adapting to climate change.
Key schemes and programs implemented by the government include: Pradhan Mantri Kisan Samman Nidhi (PMKISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY), Agriculture Infrastructure Fund (AIF), Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASHA), Modified Interest Subvention Scheme (MISS), National Bee Keeping and Honey Mission (NBHM), Agri Fund for Start Ups Rural Enterprises' (AgriSURE), Integrated Scheme for Agriculture Marketing National Agriculture Market (ISAM eNAM), and Rashtriya Krishi Vikas Yojana (RKVY).
A critical component of the strategy involves setting the Minimum Support Price (MSP) at 1.5 times the cost of production for all mandated Kharif, Rabi, and other commercial crops, a policy implemented from 2018-19 onwards.
The government has also significantly increased the budget allocation for the Department of Agriculture & Farmers Welfare (DAFW) from ₹21,933.50 crore (BE) in 2013-14 to ₹1,27,290.16 crore (BE) in 2025-26. The government asserts that these initiatives have demonstrably increased farmers' incomes over the past five years.
This information was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Rajya Sabha on August 8, 2025.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
National Statistics Office NSO: Agency responsible for conducting the Situation Assessment Survey (SAS) of Agricultural Households.
Pradhan Mantri Kisan Samman Nidhi PMKISAN: A government scheme that provides income support to small and marginal farmers.
Pradhan Mantri Fasal Bima Yojana PMFBY: A government-sponsored crop insurance scheme.
Agriculture Infrastructure Fund AIF: A fund created to improve agriculture infrastructure in India.
Rajya Sabha: The upper house of the Parliament of India, where the information regarding increased farmers' income was presented.
Shri Ramnath Thakur: Minister of State for Agriculture and Farmers Welfare who provided the information in a written reply.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan PMAASHA: An initiative to ensure remunerative prices to the farmers for their produce.
Ministry of Agriculture & Farmers Welfare
INCREASE IN REAL INCOME FOR SMALL AND
MARGINAL FARMERS
Posted On: 08 AUG 2025 4:56PM by PIB Delhi
The average monthly income of agricultural households in the country is periodically estimated through the
“Situation Assessment Survey (SAS) of Agricultural Households”, conducted by the National Statistics Office
th
(NSO), Ministry of Statistics and Programme Implementation (MoSPI). As per the latest NSS 77 round of
the Survey (January, 2019 – December, 2019) with reference to the agricultural year July, 2018- June, 2019 in
the rural areas of the country, the average monthly income per agricultural household from various sources is
estimated at Rs. 10, 218/- per month.
The Government has implemented various policies, reforms, developmental programs, and schemes from time
to time, covering entire spectrum of agriculture, to ensure the welfare and increase the income of farmers
including small and marginal farmers in the country by increasing production, remunerative returns and
providing income support.
Ministry has identified following integrated strategy for enhancing the farmers’ income and comprehensive
growth of agriculture sector:
(i) Increase crop production/ productivity
(ii) Reduce cost of production
(iii) Better price realization of farmers’ produces to enhance their incomes.
(iv) Agricultural diversification
(v) Developing post-harvest value addition
(vi) Adaptation to climate change for sustainable agriculture and mitigate against crop losses.
The various schemes/ programmes implemented by Government of India include Pradhan Mantri Kisan
Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Kisan Maan
Dhan Yojana (PM-KMY), Fixing of Minimum Support Price (MSP) at one-and-a half times the cost of
production, Agriculture Infrastructure Fund (AIF), Formation and Promotion of 10,000 Farmer Producer
Organizations (FPOs), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), Modified Interest
Subvention Scheme (MISS), National Bee Keeping and Honey Mission (NBHM), Agri Fund for Start Ups &
Rural Enterprises' (AgriSURE), Integrated Scheme for Agriculture Marketing National Agriculture Market
(ISAM eNAM), Rashtriya Krishi Vikas Yojana (RKVY), among others. Further, Government had increased
MSPs for all mandated Kharif, Rabi and other Commercial crops with a minimum return of 50 percent over
all India weighted average cost of production from 2018-19 onwards. Additionally, the Government has
substantially enhanced the budget allocation of Department of Agriculture & Farmers Welfare (DA&FW)
from Rs. 21933.50 crore BE during 2013-14 to Rs. 1,27,290.16 crore BE during 2025-26. These initiatives
have significantly increased farmers’ income during the last five years.
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: 2154172)