**Executive Summary**
This document is the answer provided on December 16th, 2025, by the Minister of State for Agriculture and Farmers Welfare to Lok Sabha Unstarred Question No. 2643 regarding the financial distress of farmers. It outlines the Government of India's support for farmers, including budget allocations, various schemes, and measures to mitigate challenges faced by farmers. Annexure I lists major schemes/programmes initiated by the Department of Agriculture & Farmers Welfare. Annexure II contains a table on Minimum Support Price (MSP) by marketing season.
**Key Points / Main Content**
* **Government Support:**
* Agriculture is a State subject. The Government of India supports States, including Kerala, through policy measures and budgetary allocations.
* The budget allocation for the Department of Agriculture & Farmers Welfare (DA&FW) has increased from Rs. 21,933.50 crore in 2013-14 to Rs. 1,27,290.16 crore in 2025-26.
* Schemes and programs aim to support distressed farmers by mitigating challenges related to input costs, climate disasters, and crop insurance.
* **Sub-Mission on Agricultural Mechanization (SMAM):**
* Provides financial assistance of 40% to 50% for the purchase of agricultural machines.
* Offers 40% of the project cost to rural entrepreneurs, cooperative societies, FPOs and Panchayats for establishing Custom Hiring Centres (CHCs).
* Provides 80% of the project cost for projects costing up to Rs. 30 lakhs for the cooperative societies of farmers, Registered Farmer Societies, FPOs, Self Help Groups and Panchayats for setting up of village level Farm Machinery Banks (FMBs).
* Promotes technologies like drones and sensors for monitoring crop health and managing soil conditions.
* **Rashtriya Krishi Vikas Yojana (PM-RKVY):**
* A cafeteria scheme comprising several Centrally Sponsored Schemes.
* Rs. 112.03 crore has been released for Kerala under RKVY during this financial year (as of 25.11.2025).
* **Krishonnati Yojana:**
* An umbrella scheme of 08 schemes.
* Rs. 49.81 crore has been released for Kerala under KY during this financial year (as of 31.10.2025).
* **PM-KISAN Scheme:**
* Provides Rs. 6,000 per year to eligible farmers in three equal installments.
* Rs. 4.09 lakh crore has been disbursed through 21 installments across India.
* Rs. 12980.72 crore has been disbursed to farmers of Kerala in 21 installments.
* The 21st installment of Rs. 18,680.63 crore for August-November (FY 2025-2026) has been released under PM-KISAN.
* **Minimum Support Prices (MSPs):**
* Government fixes MSPs for 22 mandated agricultural crops annually.
* The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of at least one and half times of the cost of production.
* Government increased MSPs for all mandated Kharif, Rabi and other Commercial crops.
* **Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA):**
* Aims to protect farmers from price fluctuations by strengthening the MSP system.
* During calendar year 2022 and 2023, 1374.15 MTs of Copra were procured with a total MSP of Rs. 14.85 Crore benefitting 6840 farmers.
* **Pradhan Mantri Fasal Bima Yojna (PMFBY) / Restructured Weather Based Crop Insurance Scheme (RWBCIS):**
* PMFBY was introduced in Kharif 2016 and provides comprehensive risk coverage for crops against non-preventable natural risks.
* Admissible claims are paid directly to insured farmers.
* Details of PMFBY and RWBCIS for Kerala are provided for the years 2021-2022, 2022-2023, and 2023-2024.
* **Transparency and Technology in Claim Settlement:**
* The Government has developed the National Crop Insurance Portal (NCIP) for data management, subsidy payment, coordination, and online enrollment.
* The Digiclaim Module has been operationalized for payment of claims from Kharif 2022.
* Various technology-based initiatives are implemented for capturing yield data and improving claim settlements.
* **SNA-SPARSH:**
* The Ministry of Finance introduced the SNA-SPARSH process for disbursement under Centrally Sponsored Schemes from July 2023.
**Impact Analysis**
**Farmers (including those in Kerala)**
* **Impact:** Farmers benefit from increased budgetary allocations for agriculture, various schemes, and programs designed to mitigate financial distress caused by rising input costs, unstable crop prices, and natural calamities. These measures aim to improve their livelihoods and provide remunerative returns.
* **Action Required:** Farmers should enroll in relevant schemes like PM-KISAN, PMFBY, and SMAM to avail financial assistance, insurance coverage, and access to modern technologies.
**State Governments (including Kerala)**
* **Impact:** State Governments are supported by the Central Government through policy measures and budgetary allocations. They are responsible for implementing agriculture-related schemes and providing necessary data for claim settlements under PMFBY.
* **Action Required:** State Governments must collaborate with the Central Government in implementing schemes and ensure timely submission of yield data for accurate claim processing.
**Insurance Companies**
* **Impact:** Insurance companies are responsible for processing and disbursing claims under PMFBY based on yield data provided by State Governments. They are also required to integrate with NCIP and PFMS for transparent and timely claim settlements.
* **Action Required:** Insurance companies must integrate with NCIP and PFMS, adopt modern technologies for yield data capture, and ensure timely and transparent claim processing.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop insurance scheme providing risk coverage to farmers against non-preventable natural risks from pre-sowing to post-harvest, implemented on an 'Area Approach' basis. Farmers pay a very minimum premium under the scheme.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Scheme that provides income support to all landholding farmer families with cultivable land, through direct transfer of Rs 6,000 per year in three equal installments.
Minimum Support Prices (MSPs): The price at which the government purchases crops from the farmers, fixed to safeguard farmer's interests by providing a minimum return on investment.
Rashtriya Krishi Vikas Yojana (PM-RKVY): A centrally sponsored scheme, which is a cafeteria scheme consisting of several Centrally Sponsored Schemes.
Kerala: Indian state where financial distress among farmers is mentioned, and specifically called out for inclusion in an agriculture package.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2643
TO BE ANSWERED ON THE 16TH DECEMBER, 2025
FINANCIAL DISTRESS OF FARMERS
2643. SHRI K RADHAKRISHNAN:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष और िकसान क(cid:670)ाण
मं(cid:361)ी be pleased to state:
(a) whether the Government is aware of the severe financial distress being faced by
farmers due to rising input costs, unstable crop prices and increasing incidents of
natural calamities in various States including Kerala;
(b) whether the allocation for key schemes such as PM-KISAN, PMFBY and
agricultural subsidies has been reduced or remains pending for disbursal, thereby
affecting farmers' livelihoods;
(c) the reasons for the delay in settling crop insurance claims under PMFBY in several
districts, particularly where farmers have suffered major crop losses; and
(d) whether the Government will take urgent steps to increase MSP, enhance
compensation for crop losses, ensure timely release of pending scheme funds and
provide a special agriculture package for distressed farmers across the country
including Kerala?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष और िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (d): Agriculture is a State subject. Government of India supports the States
including Kerala through appropriate policy measures and budgetary allocation for
schemes for multiple aspects like agriculture inputs, price support etc. The
Government has substantially enhanced the budget allocation of Department of
Agriculture & Farmers Welfare (DA&FW) from Rs. 21,933.50 crore BE during 2013-14
to Rs. 1,27,290.16 crore BE during 2025-26. The schemes/programmes of the
Government of India, which together act as an agriculture support package for
distressed farmers and aim to mitigate challenges faced by farmers including input
costs, climate disasters, crop insurance and provide remunerative returns are at
Annexure I.Under the Sub-Mission on Agricultural Mechanization’ (SMAM), financial
assistance @ 40% to 50% of the cost of machines depending on the categories of
farmers is provided for purchase of agricultural machines. Financial assistance @ 40%
of the project cost is also provided to rural entrepreneur, (Rural youth and farmer as
an entrepreneur), Cooperative Societies of Farmers, Registered Farmers Societies,
Farmer Producer Organizations (FPOs) and Panchayats for establishment of Custom
Hiring Centres (CHCs) and Hi-tech hubs of high value agricultural machines. Financial
assistance @ 80% of the project cost for the projects costing up to Rs. 30 lakhs is
provided to the Cooperative Societies of farmers, Registered Farmer Societies, FPOs,
Self Help Groups and Panchayats for setting up of village level Farm Machinery Banks
(FMBs). The CHCs promoted under SMAM cater to the requirements of small and
marginal farmers by providing the machines and equipment on rental basis for different
agricultural operations as per their requirement. Technologies such as drones,
sensors enable farmers to monitor crop health, manage soil conditions and apply
inputs more effectively which helps in reducing input costs and improving productivity.
Rashtriya Krishi Vikas Yojana (PM-RKVY) is a cafeteria scheme consisting
several Centrally Sponsored Schemes viz. Detailed Project Report (DPR) component,
Per Drop More Crop (PDMC), Sub- Mission on Agriculture Mechanization (SMAM)
including Management of Crop Residue (CRM), Soil Health and Fertility (SH&F),
Paramparagat Krishi Vikas Yojna (PKVY), Rainfed Area Development (RAD), Agro-
Forestry and Crop Diversification Programme (CDP). Under RKVY, Rs. 112.03 crore
(as on 25.11.2025) has been released for Kerala during this financial year.
Krishonnati Yojana is an umbrella scheme of 08 schemes viz Mission for
Integrated Development of Horticulture (MIDH), National Food Security and Nutrition
Mission (NFSNM), Sub-Mission on Agriculture Extension (SAME), Integrated Scheme
on Agricultural Marketing, Digital Agriculture Mission (DAM), National Mission on
Edible Oil – Oilseeds (NMEO-OS), National Mission on Edible Oil – Oilpalm (NMEO-
OP) and Mission Organic Value Chain Development for North East Region
(MOVCDNER). Under KY, Rs. 49.81 crore (as on 31.10.2025) has been released for
Kerala during this financial year.Under the PM-KISAN scheme, a financial benefit of Rs 6,000/- per year is
transferred in three equal instalments, into the Aadhaar seeded bank accounts of
eligible farmers through Direct Benefit Transfer (DBT) mode. Maintaining absolute
transparency in registering and verifying beneficiaries, the Government of India has
disbursed over Rs 4.09 lakh crore through 21 installments to eligible farmers since
inception of the Scheme. Total Rs. 12980.72 crore has been disbursed to the farmers
of kerala in 21 installments. The 21st installment of Rs. 18,680.63 crore for August-
November (FY 2025-2026) under PM-KISAN has been released.
Every year, Government fixes Minimum Support Prices (MSPs) for 22
mandated agricultural crops for the country as a whole, based on the
recommendations of Commission for Agricultural Costs & Prices (CACP), after
considering the views of State Governments and Central Ministries/Departments
concerned. The Union Budget for 2018-19 had announced the pre-determined
principle to keep MSPs at levels of at least one and half times of the cost of production.
Accordingly, 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 year 2018-19 onwards. The details of increased MSP in the
year 2025-26 as compared to the year 2015-16 are given at Annexure II.
Government has launched Pradhan Mantri Annadata Aay SanraksHan Abhiyan
(PM-AASHA) to protect farmers from price fluctuations by strengthening the MSP
system. Its key objectives are to provide price support for pulses, oilseeds, and copra;
reduce distress sales by guaranteeing minimum assured income to farmers; promote
procurement, price deficiency payments, and private participation in procurement; and
ultimately ensure that farmers receive fair returns for their produce. During the
calendar year 2022 and 2023, a quantity of 1374.15 MTs Copra have been procured
having total MSP of Rs. 14.85 Crore under PSS benefitting 6840 farmers.Pradhan Mantri Fasal Bima Yojna (PMFBY) was introduced in the country from
Kharif 2016 season. This scheme is mainly implemented on ‘Area Approach’ basis
and comprehensive risk coverage for crops of farmers against all non-preventable
natural risks from pre-sowing to post-harvest stages of the crops at very minimum
premium for the farmers is provided under the scheme. Admissible claims are worked
out and paid directly only to the insured farmer’s account by the insurance companies
through DigiClaim module on National Crop Insurance Portal (NCIP), based on the
yield data per unit area furnished to the insurance company by the concerned State
Government as per claim calculation formula envisaged in the Operational Guidelines
of the scheme upon receipt of Centre and State Government’s requisite share in
premium subsidy. This is demand driven scheme and there is no provision for State
wise funds allocation under the scheme. This scheme is voluntary for States and
farmers as well and Govt. of Kerala have been implementing the scheme since
inception of the scheme i.e from Kharif 2016. RWBCIS is generally applicable to
commercial horticultural crops provides insurance protection/ compensation to the
farmers against adverse weather incidence, such as deficit or excess rainfall, high or
low temperature (including heat wave, cold wave, frost), humidity etc. which are
deemed to adversely impact the crop. Additional insurance coverage for hailstorm
and cloud burst for horticultural crops has been provided as add-on/Index plus under
RWBCIS.
The details of PMFBY and RWBCIS for Kerala is as under:
Year Farmer Applications Insured Area Insured Paid Claims
(lakh) (lakh ha) Rs. Crore
2021-2022 0.99 0.51 102.21
2022-2023 1.47 0.69 180.33
2023-2024 1.74 0.73 164.81
Government has taken various steps to strengthen implementation of this
scheme all over India to bring transparency and onboard modern technology to ensure
timely settlement of claims:
Government has undertaken development of National Crop Insurance Portal
(NCIP) as a single source of data ensuring subsidy payment, co-ordination,
transparency, dissemination of information and delivery of services including
direct online enrollment of farmers, uploading/obtaining individual insured
famer’s details for better monitoring and to ensure transfer of claim amount
electronically to the individual farmer’s Bank Account. In order to rigorously monitor claim disbursal process, a dedicated module
namely ‘Digiclaim Module’ has been operationalized for payment of claims
from Kharif 2022 onwards. It involves integration of NCIP with Public
Finance Management System (PFMS) and accounting system of Insurance
Companies to provide timely & transparent processing of all claims.
Also, towards leveraging technology in implementation of the scheme,
various steps like capturing of yield data/Crop Cutting Experiments (CCEs)
data through CCE-Agri App & uploading it on the NCIP, allowing insurance
companies to witness the conduct of CCEs, integration of State land records
with NCIP, introduction of YESTECH (Yield Estimation System Based on
Technology) & WINDS (Weather Information Network and Data System)
etc. have already been taken to improve timely settlement of the claims to
farmers.
Ministry of Finance has introduced new process called SNA-SPARSH from July
2023 for disbursement under Centrally Sponsored Schemes for more effective cash
management and with the aim of achieving the goal of “Just-in-time”.Annexure I
MAJOR SCHEMES/PROGRAMMES INITIATED BY DA&FW
1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
2. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
3. Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather Based
Crop Insurance Scheme (RWBCIS)
4. Modified Interest Subvention Scheme (MISS)
5. Agriculture Infrastructure Fund (AIF)
6. Formation and Promotion of 10,000 new Farmer Producers Organizations
(FPOs)
7. National Bee Keeping and Honey Mission (NBHM)
8. Namo Drone Didi
9. National Mission on Natural Farming (NMNF)
10. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
11. Agri Fund for Start-Ups & Rural Enterprises (AgriSURE)
12. Per Drop More Crop (PDMC)
13. Sub-Mission on Agriculture Mechanization (SMAM)
14. Paramparagat Krishi Vikas Yojana (PKVY)
15. Soil Health & Fertility (SH&F)
16. Rainfed Area Development (RAD)
17. Agroforestry
18. Crop Diversification Programme (CDP)
19. Sub-Mission on Agriculture Extension (SMAE)
20. Sub-Mission on Seed and Planting Material (SMSP)
21. National Food Security and Nutrition Mission (NFSNM)
22. Integrated Scheme for Agriculture Marketing (ISAM)
23. Mission for Integrated Development of Horticulture (MIDH)
24. National Mission on Edible Oils (NMEO)-Oil Palm
25. National Mission on Edible Oils (NMEO)-Oilseeds
26. Mission Organic Value Chain Development for North Eastern Region
27. Digital Agriculture Mission
28. National Bamboo MissionAnnexure II
Minimum Support Price
(Marketing Season-wise) (₹/quintal)
Commodities KMS 2015-16 KMS 2025-26
KHARIF CROPS
Paddy (Common) 1410 2369
Paddy (Grade ‘A’) 1450 2389
Jowar (Hybrid) 1570 3699
Jowar (Maldandi) 1590 3749
Bajra 1275 2775
Ragi 1650 4886
Maize 1325 2400
Arhar 4625 8000
Moong 4850 8768
Urad 4625 7800
Cotton (Medium Staple) 3800 7710
Cotton (Long Staple) 4100 8110
Groundnut 4030 7263
Sunflower Seed 3800 7721
Soyabean Yellow 2600 5328
Sesamum 4700 9846
Nigerseed 3650 9537
RABI CROPS RMS 2016-17 RMS 2026-27
Wheat 1525 2585
Barley 1225 2150
Gram 3500 5875
Masur 3400 7000
Rapeseed & mustard 3350 6200
Safflower 3300 6540
KMS – Kharif Marketing Season
RMS – Rabi Marketing Season
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