Lok Sabha Question No. 2643 (UNSTARRED), answered on 2025-12-16
Subject: Financial Distress of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri K Radhakrishnan

## 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 16 TH  DECEMBER, 2025

## FINANCIAL DISTRESS OF FARMERS

## 2643. SHRI K RADHAKRISHNAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष और िकसान कʞाण मंũी 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

क ृ िष और िकसान कʞाण राǛ मंũी

(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), AgroForestry 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 (NMEOOP)  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 21 st  installment of Rs. 18,680.63 crore for AugustNovember (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 Mission

## 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

*****

## Annexure II