Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 3910 regarding agricultural policies, specifically loan waiver schemes, crop procurement at Minimum Support Price (MSP), and comprehensive insurance schemes for crops and animal husbandry. It outlines the government's current policies and schemes in these areas as of August 12, 2025, including MSP determination, financial support mechanisms, and insurance programs. No immediate deadlines or action items are specified within the document itself.
Key Points / Main Content:
Minimum Support Price (MSP):
* The government fixes MSPs for 22 mandated agricultural crops annually.
* The MSP recommendations are based on the Commission for Agricultural Costs and Prices (CACP) and consider input from State Governments and Central Ministries/Departments.
* Since 2018-19, MSPs have been set at a minimum return of 50% over the all-India weighted average cost of production.
Loan Waiver Schemes:
* Currently, there is no loan waiver scheme in operation under the Department of Agriculture & Farmers Welfare.
* Farmers are supported through schemes like PM Kisan, MSP, Pradhan Mantri Fasal Bima Yojana, and the Modified Interest Subvention Scheme.
Comprehensive Insurance Schemes:
* Pradhan Mantri Fasal Bima Yojna (PMFBY): Introduced in Kharif 2016, it provides financial support to farmers for crop loss/damage due to natural calamities and adverse weather. Farmers paid Rs 35,753 crore in premium and received Rs 1.83 lakh crore in claims as of 30.06.2025.
* Livestock Insurance under National Livestock Mission (NLM): A centrally sponsored scheme implemented nationwide to protect farmers/cattle owners against livestock death. It includes insurance for various animal types, with subsidy benefits restricted to cattle units per household and varying premium sharing ratios between farmers, the Central Government, and State Governments.
* Achievements of Livestock Insurance Scheme during the last four years: Financial Year 2021-22, 2022-23, 2023-24, 2024-25 Fund Released Rs. In lakh 3324.31, 2491.6, 2229.58, 3651.53. No. of animals insured 4,63,046, 11,85,740, 9,67,632, 26,69,711.
Impact Analysis:
Farmers:
Impact: Benefit from MSP for 22 crops, financial support through PM Kisan and other schemes, crop insurance under PMFBY, and livestock insurance under NLM.
Action Required: To participate in the schemes, farmers need to enroll in PM Kisan, PMFBY, and Livestock Insurance (NLM), pay applicable premiums, and adhere to scheme guidelines.
State Governments:
Impact: Provide input on MSP recommendations, collaborate in implementing PMFBY and Livestock Insurance (NLM), and share premium costs for livestock insurance.
Action Required: Provide recommendations for MSP, collaborate with the central government on insurance scheme implementation, and allocate funds for their share of livestock insurance premiums.
Central Ministries/Departments:
Impact: Provide input on MSP recommendations, oversee the implementation of PMFBY and NLM, and allocate funds for these schemes.
Action Required: Review and provide input on MSP recommendations, oversee the implementation of PMFBY and NLM, and allocate funds for these schemes.
Key Entities Referenced
Minimum Support Prices: A price set by the Government of India to purchase crops directly from farmers, ensuring they receive a minimum profit.
Commission for Agricultural Costs Prices: An advisory body that recommends minimum support prices (MSPs) for various crops to the Government of India.
PM Kisan: A financial assistance scheme providing income support to landholding farmer families across the country.
Pradhan Mantri Fasal Bima Yojna: A crop insurance scheme providing financial support to farmers suffering crop loss/damage arising out of natural calamities.
Modified Interest Subvention Scheme: A scheme to provide farmers with agricultural loans at subsidized interest rates.
National Livestock Mission: A centrally sponsored scheme implemented by the Government of India to promote sustainable livestock development.
Livestock Insurance Scheme: A component of the National Livestock Mission that provides insurance coverage for livestock, protecting farmers against losses due to animal death.
Mahatma Gandhi National Rural Employment Guarantee Act, 2005: An Indian labour law and social security measure that aims to guarantee the 'right to work'.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 3910
TO BE ANSWERED ON THE 12th August, 2025
LOAN WAVIER SCHEMES FOR FARMERS
3910. SHRI UTKARSH VERMA MADHUR:
Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:
(a) whether there is a proposal to procure all crops at MSP as per C2+50% rate, if not,
the reasons therefor;
(b) the details of Comprehensive Loan Waiver Scheme for farmers and farm labourers
to get relief from indebtedness, farmer suicides and distress migration; and
(c) the details of Comprehensive Insurance Scheme under public sector for all crops
and animal husbandry?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसानक(cid:670)ाण रा(cid:475)मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a): Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated
agricultural crops for the country as a whole, based on the recommendations of the
Commission for Agricultural Costs & Prices (CACP), after considering the views of the
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 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.
(b): Presently, no scheme for loan waiver is in operation in the Department of Agriculture
& Farmers Welfare. However, farmers are provided significant support through other
schemes such as PM Kisan, Minimum Support Price (MSP), Pradhan Mantri Fasal
BimaYojana and Modified Interest Subvention Scheme to address their financial
vulnerability in a structured manner.
(c): 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.Government is implementing an activity called Livestock Insurance under National
Livestock Mission (NLM) which is a Centrally Sponsored Scheme in all the districts of the
country with an objective to manage and mitigate risk and uncertainties by providing
protection mechanism to the farmers & cattle owners against any eventual loss of their
animals due to death.
It includes insurance of indigenous / crossbreed milch animals, pack animals
(Horses, Donkey, Mules, Camels, Ponies and male animals of Cattle/Buffalo) and other
livestock (Goat, Sheep, Pigs, Rabbit, Yak and Mithun) are covered under the purview of
the Livestock Insurance. Benefit of subsidy is restricted to 10 cattle units per household
all animals except for pig and rabbit, where the benefit will be remained restricted for 5
cattle units (1 cattle unit=10 small animals). In case of sheep, goat, pig and rabbit, the
benefit of subsidy is restricted based on “Cattle Unit‟ and one cattle unit is equal to 10
animals i.e. for sheep, goat, pig and rabbit. For this purpose, “household” will be defined
on the same lines as adopted under Mahatma Gandhi National Rural Employment
Guarantee Act, 2005.
The farmer’s share of premium payment has been reduced to 15% from 20-50%
depending upon the caste and region of settlement. The rest 85% will be shared by the
Central and State share in the ratio 60:40 for states other than Himalayan and North-
eastern region and 90:10 for the Himalayan and North-Eastern region.
Achievements of Livestock Insurance Scheme during last Four years
Financial Year
2021-22 2022-23 2023-24 2024-25
Fund Released (Rs. In lakh)
3324.31 2491.6 2229.58 3651.53
No. of animals insured
4,63,046 11,85,740 9,67,632 26,69,711
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