Parliament Question: Rising Input Cost of Agriculture

Executive Summary: The Ministry of Agriculture and Farmers Welfare addresses rising input costs for farmers related to seeds, labor wages, pesticides, and fertilizers. The Department of Agriculture Farmers Welfare (DAFW) is implementing various central sector and centrally sponsored schemes. The government aims to enhance farmers' income through increased crop production, reduced production costs, better price realization, agricultural diversification, post-harvest value addition, and climate change adaptation. Minimum Support Prices (MSPs) are fixed based on the Commission for Agricultural Costs & Prices (CACP) recommendations. Key Points / Main Content: * **Addressing Rising Input Costs:** * The Department of Agriculture Farmers Welfare is implementing central sector and centrally sponsored schemes to help farmers facing rising input costs. * **Budget Allocation:** * The budget allocation for the Department of Agriculture Farmers Welfare has increased from Rs. 21,933.50 crore in 2013-14 to Rs. 1,27,290.16 crore in 2025-26. * **Integrated Strategy for Enhancing Farmers' Income:** * Increase crop production productivity. * Reduce cost of production. * Better price realization of farmers' produce. * Agricultural diversification. * Developing post-harvest value addition. * Adaptation to climate change for sustainable agriculture. * **Minimum Support Prices (MSPs):** * Government fixes MSPs for mandated crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP). * MSPs are set at levels of one and a half times the cost of production. * Government has 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 2018-19 onwards. * **Major Schemes/Programmes:** * Pradhan Mantri Kisan Samman Nidhi (PMKISAN) * Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY) * Pradhan Mantri Fasal Bima Yojana (PMFBY) / Restructured Weather Based Crop Insurance Scheme (RWBCIS) * Modified Interest Subvention Scheme (MISS) * Agriculture Infrastructure Fund (AIF) * Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs) * National Bee Keeping and Honey Mission (NBHM) * Namo Drone Didi * National Mission on Natural Farming (NMNF) * Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PMAASHA) * Agri Fund for StartUps Rural Enterprises (AgriSURE) * Per Drop More Crop (PDMC) * SubMission on Agriculture Mechanization (SMAM) * Paramparagat Krishi Vikas Yojana (PKVY) * Soil Health Fertility (SHF) * Rainfed Area Development (RAD) * Agroforestry * Crop Diversification Programme (CDP) * SubMission on Agriculture Extension (SMAE) * SubMission on Seed and Planting Material (SMSP) * National Food Security and Nutrition Mission (NFSNM) * Integrated Scheme for Agriculture Marketing (ISAM) * Mission for Integrated Development of Horticulture (MIDH) * National Mission on Edible Oils (NMEO-Oil Palm) * National Mission on Edible Oils (NMEO-Oilseeds) * Mission Organic Value Chain Development for North Eastern Region * Digital Agriculture Mission * National Bamboo Mission Impact Analysis: Farmers: * Impact: Farmers are directly affected by the rising input costs and will benefit from the implemented schemes aimed at reducing these costs and enhancing their income through various agricultural improvements and price support mechanisms. * Action Required: Farmers should familiarize themselves with the various schemes and programs available to them and take necessary steps to apply and benefit from these initiatives. State Governments and Central Ministries/Departments: * Impact: These entities are involved in the consultation process for fixing Minimum Support Prices (MSPs) and are responsible for the implementation and monitoring of the various schemes and programs. * Action Required: State Governments and Central Ministries/Departments need to provide their views and recommendations to the Commission for Agricultural Costs & Prices (CACP) for fixing MSPs and ensure effective implementation of the schemes and programs to benefit the farmers. Commission for Agricultural Costs & Prices (CACP): * Impact: The CACP is responsible for making recommendations to the government regarding the Minimum Support Prices (MSPs) for mandated crops. * Action Required: The CACP needs to consider the views of State Governments and Central Ministries/Departments while formulating their recommendations for MSPs.

Key Entities Referenced