Agricultural Subsidies in India: Complete Guide for Farmers in 2025
Why Agricultural Subsidies in India Matter
Farmers in India face numerous challenges, from fluctuating market prices and erratic weather patterns to rising input costs and pest infestations. For many, government schemes and farmer subsidies act as a lifeline, providing critical financial aid and other forms of support that help reduce production costs, enhance productivity, and protect their livelihoods.
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
1.PM-KISAN:
Direct Income Support Scheme for Farmers Launched in 2019, PM-KISAN is a direct income support scheme for small and marginal farmers. Under this program, eligible farmers receive ₹6,000 annually in three equal installments, directly transferred to their bank accounts. 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 Crop Subsidy for Indian Farmers PMFBY is one of the most significant crop insurance schemes for farmers in India. It provides insurance coverage and financial support in the event of crop failure or low yield. 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 Farmers3. Kisan Credit Card (KCC) Scheme:
Affordable Farm Loans Introduced in 1998, the KCC scheme aims to provide farmers with short-term credit at affordable interest rates. Farmers can use this credit to purchase seeds, fertilizers, 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 Scheme:
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) Schemes for Agriculture Development
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. Subsidy on Fertilizers and Seeds
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.
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.
Frequently Asked Questions on Agricultural Subsidies in India
1. What are agricultural subsidies in India?
Agricultural subsidies in India are financial aids from the government to help farmers reduce costs on seeds, fertilizers, crop insurance, and modern equipment.
2.Which government schemes provide agricultural subsidies?
Popular schemes include PM-KISAN for income support, PMFBY for crop insurance, Kisan Credit Card for loans, and Soil Health Card for soil testing.
3. How can farmers apply for agricultural subsidies?
Farmers can apply online through official government portals or state agriculture departments. They need Aadhaar, land records, and bank details. Many states also allow registration via mobile apps like the Kshema App.
4. What is the eligibility for agricultural subsidies in India?
Eligibility depends on land size, crop type, and scheme rules. Small and marginal farmers usually get priority benefits.
5. Why are agricultural subsidies important for farmers?
They lower input costs, protect against crop loss, and help farmers adopt modern technology, improving productivity and income.
