Executive Summary:
This document presents the Ministry of Agriculture and Farmers Welfare's response to questions regarding farmers' income, cost of production, and efforts to enhance agricultural income. It details the government's initiatives, including setting Minimum Support Prices (MSPs) and implementing various schemes and programs. The document includes annexures with data on MSPs, production costs, and a list of government schemes aimed at improving farmer welfare. The reference years include data from 2018-19 to 2025-26.
Key Points / Main Content:
* **Minimum Support Prices (MSPs):**
* The government aims to ensure remunerative prices for farmers by offering MSPs.
* Since 2018-19, MSPs for Kharif, Rabi, and other commercial crops have been set with a minimum margin of 50% over the all-India weighted average cost of production.
* Farmers have the option to sell their produce to government agencies at MSP or in the open market, whichever is more beneficial.
* **Farmer Income:**
* The estimated average monthly income per agricultural household increased from Rs. 6,426 in 2012-13 to Rs. 10,218 in 2018-19.
* Data for average monthly income per agricultural household for 2024-25 is not readily available.
* All India average monthly per capita consumption expenditure of rural sector has increased from Rs. 1,430 in 2011-12 to Rs. 4,122 in 2023-24.
* **Government Schemes and Programs:**
* The government implements various schemes to enhance overall farmer income and ensure remunerative returns.
* The budget allocation for the Department of Agriculture & Farmers Welfare (DAFW) has increased from Rs. 21,933.50 crore in 2013-14 to Rs. 1,27,290.16 crore during 2025-26.
* **Strategies for Enhancing Farmer Income:**
* Increase crop production productivity.
* Reduce the cost of production.
* Ensure better price realization for farmers' produce.
* Promote agricultural diversification.
* Develop post-harvest value addition.
* Adapt to climate change for sustainable agriculture.
Impact Analysis:
* **Farmers:**
* *Impact:* Farmers are directly impacted by the MSP policies, income enhancement schemes, and strategies to improve agricultural practices.
* *Action Required:* Farmers should be aware of the MSPs for their crops, utilize government schemes, and adopt improved agricultural practices.
* **Government Agencies:**
* *Impact:* Government agencies are responsible for implementing MSP policies, managing agricultural schemes, and allocating budgets for the agriculture sector.
* *Action Required:* Government agencies need to effectively implement and monitor the various schemes and strategies to ensure they reach the intended beneficiaries and achieve the desired outcomes.
* **Ministry of Agriculture and Farmers Welfare:**
* *Impact:* The ministry is responsible for formulating and implementing policies and programs related to agriculture and farmer welfare.
* *Action Required:* The ministry needs to continue monitoring the progress of various schemes, address any challenges, and make necessary adjustments to achieve the goal of enhancing farmer income and promoting sustainable agriculture.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Lok Sabha: The lower house of the Parliament of India.
National Sample Survey Office NSSO: An office under the Ministry of Statistics and Programme Implementation (MoSPI) that conducts surveys related to various socio-economic aspects, including agriculture.
Union Budget for 201819: The annual financial statement presented by the Government of India in 2018-2019.
Pradhan Mantri Kisan Samman Nidhi PMKISAN: A government scheme that provides income support to small and marginal farmers.
Minimum Support Price MSP: A form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
Indian Council on Agricultural Research ICAR: An autonomous organisation responsible for co-ordinating agricultural education and research in India.
Department of Agriculture Farmers Welfare DAFW: A department within the Ministry of Agriculture and Farmers Welfare.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4353
TO BE ANSWERED ON 19TH AUGUST, 2025
PER CAPITA INCOME OF FARMERS
4353. SHRI ANAND BHADAURIA:
Will the Minister of Agriculture and Farmers Welfare कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state;
(a) whether it is a fact that increase in income of farmers in the country is slower compared to
increase in cost of production during the last five years, if so, the details thereof and reasons
therefor;
(b) the details of per capita income of farmers per day in 2019-20 and 2024-25;
(c) the details of cost of production of various grains per quintal in 2019-20 and 2024-25, grain-
wise;
(d) whether slow increase in per capita income in comparison to cost of production is the main
reason for not achieving the aim to double farmers’ income by 2022; and
(e) if so, the latest fresh corrective steps in this regard proposed by the Government?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (c): The projected cost of production has been increasing over the years, however,
the Government in the Union Budget for 2018-19 had announced to keep MSPs at levels of
one and half times of the cost of production. Accordingly, Government had consistently
increased MSPs for all mandated Kharif, Rabi and other Commercial crops with a minimum
margin of 50 percent over all India weighted average cost of production from the year 2018-
19 onwards. The details of the MSPs and Projected Cost of Production during the last five
years are given at Annexure I.
The Government’s price policy is to ensure remunerative prices to farmers by offering
their produce at MSP. However, farmers are free to sell their produce to the Government
procurement agencies at MSP or in the open market, whichever is advantageous to them.The National Sample Survey Office (NSSO), Ministry of Statistics and Programme
Implementation (MoSPI) conducted a Situation Assessment Survey (SAS) of Agricultural
Households during NSS 77th round (January, 2019 – December, 2019) with reference to
the agricultural year July, 2018- June, 2019 in the rural areas of the country. According to
these surveys, the estimated average monthly income per agricultural household increased
to ₹10,218 in 2018-19 (NSS 77th round) from ₹6,426 in 2012-13 (NSS 70th round). Since,
the last survey was conducted in 2019, the extent of average monthly income per
agricultural household during the year 2024-25 is not readily available.
However, as per NSSO Survey on Household Consumption Expenditure 2023-24, All
India average monthly per capita consumption expenditure of rural sector has increased
from Rs. 1,430 in 2011-12 (NSS 68th round) to Rs. 4,122 in 2023-24.
(d) & (e): The Government implements various schemes/programmes to enhance overall
income of farmers and remunerative returns in the agriculture sector, which are given at
Annexure II. The Government has substantially enhanced the budget allocation of
Department of Agriculture & Farmers Welfare (DA&FW) to Rs. 1,27,290.16 crore BE during
2025-26 from Rs. 21,933.50 crore BE during 2013-14.
Further, The Ministry has identified the following integrated strategies for enhancing
farmers income and comprehensive growth of agriculture sector:
(i) Increase crop production/ productivity,
(ii) Reduce cost of production,
(iii) Better price realization of farmers’ produce 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.
Implementation of the schemes/programmes by the Government has yielded
remarkable results towards augmenting the income of the farmers. As part of the ‘Azadi ka
Amrit Mahotsav’, Indian Council on Agricultural Research (ICAR) has released a compilation
of success stories of 75,000 farmers who have increased their income more than two times.Annexure I
Cost of Production and Minimum Support Price (MSP) (Marketing year wise)
(Rs./Quintal)
Commodity KMS 2021-22 KMS 2022-23 KMS 2023-24 KMS 2024-25 KMS 2025-26
Sl.
No.
KHARIF CROPS Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
1940
PADDY (Common)
1 1293 1360 2040 1455 2183 1533 2300 1579 2369
PADDY (Grade A) ^ 1960
2060 - 2203 2320 2389
2738
2 JOWAR (Hybrid) 1825 1977 2970 2120 3180 2247 3371 2466 3699
2758
JOWAR (Maldandi) ^
2990 3225 3421 3749
3 BAJRA 2250
1213 1268 2350 1371 2500 1485 2625 1703 2775
4 RAGI 3377
2251 2385 3578 2564 3846 2860 4290 3257 4886
1870
5 MAIZE 1246 1308 1962 1394 2090 1447 2225 1508 2400
6300
6 ARHAR(Tur)
3886 4131 6600 4444 7000 4761 7550 5038 8000
7 MOONG 7275
4850 5167 7755 5705 8558 5788 8682 5845 8768
8 URAD 3816 6300 4155 6600 4592 6950 4883 7400 5114 7800
5726
COTTON (Medium Staple)
9 3817 4053 6080 4411 6620 4747 7121 5140 7710
COTTON (Long Staple)^ 6025 6380 7020 7521 8110
10 GROUNDNUT
3699 5550 3873 5850 4251 6377 4522 6783 4842 7263
11 SUNFLOWER SEED
4010 6015 4113 6400 4505 6760 4853 7280 5147 7721
12 SOYABEAN
2633 3950 2805 4300 3029 4600 3261 4892 3552 5328
13 SESAMUM 4871 7307 5220 7830 5755 8635 6178 9267 6564 9846
14 NIGERSEED 4620 6930 4858 7287 5156 7734 5811 8717 6358 9537Continue
Commodity RMS 2021-22 RMS 2022-23 RMS 2023-24 RMS 2024-25 RMS 2025-26
Sl.
No.
RABI CROPS Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
15 WHEAT
960 1975 1008 2015 1065 2125 1128 2275 1182 2425
16 BARLEY
971 1600 1019 1635 1082 1735 1158 1850 1239 1980
17 GRAM
2866 5100 3004 5230 3206 5335 3400 5440 3527 5650
18 MASUR (LENTIL)
2864 5100 3079 5500 3239 6000 3405 6425 3537 6700
RAPESEED/MUSTAR
19
D 2415 4650 2523 5050 2670 5450 2855 5650 3011 5950
20 SAFFLOWER
3551 5327 3627 5441 3765 5650 3807 5800 3960 5940
Commodity 2021-22 2022-23 2023-24 2024-25 2025-26
COMMERCIAL
Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
CROPS
21 JUTE 2832 4500 2959 4750 3095 5050 3237 5335 3387 5650
2021 2022 2023 2024 2025
Commodity
COMMERCIAL
Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
CROPS
22
COPRA (Milling)
6805 10335 6974 10590 7153 10860 7350 11160 7721 11582
COPRA (Ball)^ 10600 11000 11750 12000 12100
^ Cost data are not available for Paddy (Grade A), Jower (Maldandi), Cotton (Long
staple) & Copra (ball).
KMS-Kharif Marketing Season, RMS-Rabi Marketing SeasonAnnexure II
Various Schemes/Programmes of Department of Agriculture & Farmers Welfare
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 Mission
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