Agricultural subsidies in India are government support programmers that help farmers reduce input costs, improve productivity, and protect crops. Major support includes fertiliser, irrigation, seed, electricity, and crop insurance schemes.
Key Takeaways
- Subsidies help reduce farming costs.
- Common subsidies include fertiliser, seed, irrigation and electricity support.
- Crop insurance (PMFBY) is part of farmer support.
Agricultural Subsidies in India: Complete Guide for Farmers in 2025
In a country where agriculture remains the backbone of the economy, supporting farmers is crucial. The Indian government, aware of the challenges faced by farmers, offers a number of schemes and subsidies aimed at empowering the farming community. These initiatives not just ensure financial aid but also help farmers adopt modern technologies, safeguard their crops, and improve their livelihoods. In this blog, we’ll discuss about various farmer subsidies, government schemes and subsidies for farmers, and how programs like crop insurance offer much-needed relief during challenging times.
Why Agricultural Subsidies in India Matter
Farmers face rising input costs, pest outbreaks and unpredictable weather. Government schemes and subsidies help lower cultivation costs, reduce risk, and support modern farming practices and farmer welfare.
In 2025, Indian farmers can benefit from a wide range of government schemes and agricultural subsidies designed to reduce input costs, improve productivity, and protect against climate risks. From farmer subsidy schemes to crop insurance and NABARD-backed programs, these initiatives offer financial and technical support across all farming sectors.
Government subsidies are designed to:
Support Production Costs: By subsidising seeds, fertilizers, and other inputs, the government helps reduce the burden on farmers.
Mitigate Risks: Schemes like crop insurance provide a safety net against crop loss due to natural calamities or other unforeseen factors.
Encourage Modernization: Subsidies for adopting advanced equipment and farming techniques aim to make Indian agriculture more efficient and competitive.
Promote Welfare: Many schemes focus on providing financial and social security to small and marginal farmers.
Apply for farmer subsidies using the Kshema App
Top government schemes and agricultural subsidies in India (2025–2026)
Here’s an overview of some of the most important government schemes and subsidies available to Indian farmers:
1. PM‑KISAN (direct income support)
PM‑KISAN provides ₹6,000 per year to eligible small and marginal farmers in three instalments, paid directly into the bank account. This helps manage expenses during key farming periods.
Benefits: This financial aid helps farmers meet their expenses during critical periods of the agricultural cycle. It also provides some level of economic security, enabling them to invest in their crops.
2. Pradhan Mantri Fasal Bima Yojana (PMFBY) – crop insurance support
PMFBY provides crop insurance coverage and financial support in case of crop failure or low yield, reducing financial burden. Premium rates are kept low to improve access
Benefits: The scheme ensures that farmers receive compensation for their losses, reducing their financial burden. Premium rates for farmers are kept low, making it accessible to all. At Kshema General Insurance, we are proud to offer crop insurance policies under PMFBY to safeguard farmers’ livelihoods.
Read also: Top 10 Benefits of Crop Insurance for Farmers
3. Kisan Credit Card (KCC) Scheme – Affordable farm loans
Affordable Farm Loans Introduced in 1998, The KCC provides short-term credit at affordable rates for seeds, fertilisers, pesticides and other inputs.
Benefits: KCC offers timely financial support and flexible repayment options, reducing the need for farmers to rely on high-interest informal loans. The scheme also covers allied activities like animal husbandry and fisheries.
4. Soil Health Card — better fertiliser use, better yields
Boosting Productivity this initiative, launched in 2015, aims to promote soil testing and provide farmers with a detailed analysis of the health of their soil. The scheme helps farmers make informed decisions about the appropriate use of fertilizers and nutrients.
Benefits: Proper soil management improves crop yields and reduces input costs. By maintaining soil health, farmers can enhance their productivity and reduce environmental degradation.
5. Paramparagat Krishi Vikas Yojana (PKVY)— support for organic farming
PKVY focuses on promoting organic farming through cluster-based approaches and farmer training.
Benefits: Farmers receive financial aid to cover the cost of certification, training, and inputs for organic farming. The scheme encourages sustainable agricultural practices, which can lead to higher market prices for organic produce.
6. Fertiliser and seed subsidies
The government offers subsidies on fertilizers, seeds, and other essential inputs to reduce production costs for farmers.
Benefits: Affordable inputs enable farmers to maintain productivity without incurring heavy expenses. Subsidised high-yielding seeds further boost their crop output.
How to Apply for Agricultural Subsidies in India via Kshema App
- Registration: Farmers need to register themselves with their respective State Agriculture Departments or authorized agencies to avail the benefits under specific schemes.
- Required Documentation: Most schemes require basic documentation, including Aadhaar numbers, bank account details, and land records. Ensuring these documents are in order simplifies the application process.
- Awareness Programs: The government frequently organises workshops, training sessions, and awareness programs to inform farmers about available schemes. Farmers can actively participate to stay updated.
Read also: How to Ensure Your Crop Rotation Practices Align with Insurance Policies
Telangana agriculture subsidy schemes / Ikhedut portal (Gujarat): where to check
Because subsidy availability can vary by state and season, farmers should check:
- State Agriculture Department website or local agriculture office for current subsidy windows.
- State portals (e.g., Gujarat’s Ikhedut portal) for scheme lists and application steps.
Role of Crop Insurance in Supporting Farmers
While farmer subsidies and government schemes help reduce production costs and increase market access, crop insurance serves as a critical financial safeguard. With unpredictable weather and other risks affecting crop yields, crop insurance provides farmers with much-needed protection. By compensating for crop loss, insurance minimises financial stress and ensures that farmers can reinvest in their crops.
At Kshema General Insurance, we offer comprehensive crop insurance policies tailored to the needs of Indian farmers. We offer the PMFBY policy as well as our own insurance policies Sukriti and Prakriti to complement government initiatives like PMFBY, ensuring that the farmers receive timely and adequate compensation when they need it the most.
The Indian government’s commitment to supporting farmers through various schemes and subsidies is commendable. By leveraging these initiatives and programs, farmers can reduce their production costs, improve their yields, and safeguard their livelihoods. At Kshema General Insurance, we believe in empowering farmers through crop insurance solutions that align with these government efforts, fostering a more resilient and prosperous farming community in India.
Trusted References
- According to the Ministry of Agriculture & Farmers Welfare, the Government of India provides multiple subsidy schemes to support farmers. Official Agriculture Source
- The Pradhan Mantri Fasal Bima Yojana (PMFBY) portal provides official details on crop insurance subsidies for farmers. Official PMFBY Portal
Frequently Asked Questions on Agricultural Subsidies in India
1. What are agricultural subsidies in India?
Agricultural subsidies are government support programmes that reduce farming costs and help improve farmer income and productivity.
2. Which agriculture subsidy schemes are available for farmers in 2025–2026?
Common schemes include PM‑KISAN, PMFBY crop insurance, KCC loans, Soil Health Card, PKVY, and fertiliser/seed subsidies.
3. Is crop insurance part of agricultural subsidies?
Yes. Crop insurance support through schemes like PMFBY is part of farmer support systems.
4. How can I find the list of agricultural schemes in India 2025?
Start with central schemes (PM‑KISAN, PMFBY, KCC) and then check your State Agriculture Department for state-specific subsidies.
5. Where can I check Telangana agriculture subsidy schemes or Ikhedut portal scheme lists?
Use the official state agriculture website/portal or local agriculture office for the latest scheme lists and application windows.
6. Why are agricultural subsidies important?
They help farmers manage costs, risks, and improve productivity.
Summary:
Subsidies support sustainable farming and income stability.
