India’s agricultural sector stands as the bedrock of its economy, providing livelihoods for a significant portion of its population and ensuring food security for its vast populace. Historically, the sector has faced myriad challenges, including fragmentation of landholdings, dependence on monsoon rains, limited access to credit and modern technology, inefficient supply chains, and volatile market prices. These structural impediments have often led to low productivity, agrarian distress, and suppressed farmer incomes, despite India being one of the largest producers of several agricultural commodities globally.

Recognizing the pivotal role of agriculture in national development and poverty alleviation, the Indian government has, particularly since 2010, embarked on a series of ambitious and comprehensive initiatives. These reforms have aimed at addressing the multi-faceted challenges faced by farmers, enhancing productivity, improving market access, mitigating risks, fostering sustainability, and ultimately, boosting farmer incomes. The shift in policy focus has been towards a more holistic approach, integrating technological advancements, financial support, infrastructure development, and institutional reforms to transform the agricultural landscape.

Transforming Agriculture: Key Initiatives Since 2010

The period since 2010 has witnessed a significant acceleration and diversification of government interventions in the Indian agricultural sector. These initiatives span across various domains, from direct income support and risk mitigation to market reforms, infrastructure development, water management, and the promotion of sustainable practices.

Income Enhancement and Social Security

A cornerstone of recent agricultural policy has been the direct upliftment of farmer incomes and providing a safety net against unforeseen events.

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Launched in February 2019, PM-KISAN is a landmark scheme providing direct income support to all landholding farmer families across the country. Eligible farmers receive an annual financial benefit of ₹6,000, disbursed in three equal installments of ₹2,000 every four months. The scheme aims to supplement the financial needs of farmers in procuring various inputs and meeting household expenses, thereby alleviating agrarian distress and improving their liquidity. It represents a significant step towards decoupling agricultural income from market fluctuations and weather adversities, providing a stable baseline income. The massive scale of its implementation, leveraging Aadhaar and direct benefit transfer (DBT), has ensured transparency and efficient delivery of funds to millions of farmers.

Pradhan Mantri Fasal Bima Yojana (PMFBY): Introduced in 2016, PMFBY is a crop insurance scheme designed to provide comprehensive risk cover to farmers against crop loss or damage arising out of unforeseen events. It replaced existing schemes like the National Agricultural Insurance Scheme (NAIS) and Modified NAIS, aiming for greater coverage, transparency, and timely claim settlement. Farmers pay a minimal premium (1.5% for Rabi, 2% for Kharif, and 5% for commercial/horticultural crops), with the balance premium being borne by the central and state governments. The scheme covers pre-sowing losses, post-harvest losses, and localized calamities, besides yield losses due to non-preventable risks. PMFBY has significantly expanded the reach of crop insurance, covering millions of hectares and providing crucial financial relief to farmers during natural disasters, thereby reducing their vulnerability to climate change impacts. Regular refinements have been made to address implementation challenges, including improved technology for yield estimation and faster claim processing.

Kisan Credit Card (KCC) Scheme: While existing for a longer duration, the KCC scheme has seen renewed focus and expansion since 2010. Efforts have been made to universalize KCC coverage, linking it with PM-KISAN beneficiaries and simplifying the application process. KCC provides farmers with timely and adequate credit support from the banking system for their cultivation and other needs, including post-harvest expenses. The interest subvention scheme further reduces the effective interest rate on short-term crop loans, making credit more affordable and accessible. The push for digitization and integration with other farmer databases has streamlined its operation and extended its reach to a larger farmer base, including those involved in animal husbandry and fisheries.

Irrigation and Water Management

Recognizing the critical role of assured irrigation, significant investments have been directed towards water resource development and efficient water use.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Launched in 2015, PMKSY is a flagship program aimed at extending the coverage of irrigation and improving water use efficiency. Its core objective is ‘Har Khet Ko Pani’ (water to every field). The scheme integrates various initiatives, including:

  • Accelerated Irrigation Benefit Programme (AIBP): Focuses on completing ongoing major and medium irrigation projects.
  • Per Drop More Crop: Promotes micro-irrigation techniques (drip and sprinkler irrigation) to enhance water use efficiency at the farm level, providing financial assistance for adopting these technologies.
  • Watershed Development Component: Emphasizes soil and water conservation, regeneration of ground water, and integrated watershed management.
  • Repair, Renovation, and Restoration (RRR) of Water Bodies: Aims at restoring the lost storage capacity of water bodies. PMKSY has been instrumental in expanding the irrigated area, promoting water conservation, and encouraging the adoption of precision irrigation technologies, crucial for sustainable agriculture in water-stressed regions.

Jal Shakti Abhiyan: While a broader national mission, Jal Shakti Abhiyan, launched in 2019, has significant implications for agriculture. It focuses on water conservation and water security through various interventions, including rainwater harvesting, renovation of traditional water bodies, borewell recharge, watershed development, and afforestation. Its emphasis on community participation and a decentralized approach directly benefits agriculture by enhancing water availability and improving groundwater levels, essential for irrigation.

Market Reforms and Infrastructure Development

Addressing market inefficiencies and improving farmers’ access to remunerative markets has been a key policy thrust.

e-National Agriculture Market (e-NAM): Launched in 2016, e-NAM is a pan-India electronic trading portal that networks the existing Agricultural Produce Market Committee (APMC) mandis to create a unified national market for agricultural commodities. It aims to facilitate transparent and competitive online trading, providing farmers with better price discovery, increased choices for selling their produce, and access to a wider buyer base beyond their local mandis. The platform provides a single window service for all APMC-related services and information. While facing challenges in full adoption and integration across all states, e-NAM has been instrumental in pushing for market transparency and breaking the monopoly of local traders.

Agricultural Infrastructure Fund (AIF): Approved in 2020, the AIF is a medium-long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets. This scheme provides financial support to farmers, FPOs, PACS, marketing cooperative societies, SHGs, and entrepreneurs. It aims to improve agricultural infrastructure, reduce post-harvest losses, increase value realization for farmers, and promote private investment in the sector, particularly in storage, cold chains, processing units, and logistics.

Promotion of Farmer Producer Organizations (FPOs): The government has aggressively promoted the formation and strengthening of FPOs, recognizing their potential to aggregate small and marginal farmers, enhance their bargaining power, improve access to inputs, technology, credit, and markets. Schemes like the “Formation and Promotion of 10,000 FPOs” (launched in 2020) provide financial assistance, training, and capacity building to FPOs, enabling them to undertake collective farming, processing, and marketing activities, thereby improving their economic viability and reducing transaction costs.

Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 (APLM Act): This model act was formulated to encourage states to reform their respective APMC Acts. Its key provisions include promotion of direct marketing by farmers, establishment of private mandis, e-trading, single point levy of market fee, and promotion of farmer-consumer markets. The objective was to create more competitive and efficient marketing channels for agricultural produce, freeing farmers from the confines of traditional APMC markets.

The Farm Laws of 2020: Though repealed in 2021 due to widespread protests, the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020; and the Essential Commodities (Amendment) Act, 2020, were significant market reform initiatives during this period.

  • The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020: Aimed to permit farmers to sell their produce outside the APMC mandis, including direct sales to aggregators, processors, and exporters, without paying cess or fees. The intent was to provide farmers with greater freedom of choice and better prices.
  • The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020: Sought to create a framework for contract farming, allowing farmers to enter into agreements with agribusiness firms, processors, and wholesalers for future sale of agricultural produce at pre-agreed prices. This was intended to protect farmers from price volatility and ensure income stability.
  • The Essential Commodities (Amendment) Act, 2020: Sought to remove cereals, pulses, oilseeds, edible oils, onion, and potatoes from the list of essential commodities, deregulating their storage and movement, except in extraordinary circumstances. This was aimed at attracting private investment in storage infrastructure and reducing post-harvest losses. While these laws were intended to liberalize agricultural markets, encourage private investment, and empower farmers with more selling options, concerns about market power imbalance, lack of MSP guarantee, and potential exploitation led to their withdrawal, highlighting the complexities of agricultural policy reform in India.

Operation Green: Initially launched in 2018 for TOP (Tomato, Onion, Potato) crops, Operation Green was expanded in 2020 to cover 22 perishable fruits and vegetables. The scheme aims to stabilize the supply of these crops, reduce post-harvest losses, and ensure better price realization for farmers. It focuses on value chain development, including production clusters, FPO promotion, post-harvest infrastructure, and marketing linkages.

Technological Adoption and Modernization

Efforts have been intensified to bring modern technology and scientific practices to the farm level.

Soil Health Card Scheme: Launched in 2015, this scheme provides farmers with a soil health card that contains detailed information about the nutrient status of their soil, along with recommendations on the dosage of fertilizers and other inputs required for optimum yield. The objective is to promote balanced nutrient application, reduce overuse of chemical fertilizers, improve soil fertility, and enhance farm productivity in an environmentally sustainable manner. Millions of soil health cards have been distributed, raising farmer awareness about soil nutrition.

National Mission for Sustainable Agriculture (NMSA): Part of the National Action Plan on Climate Change (NAPCC), NMSA focuses on promoting climate-resilient agriculture practices. It encompasses several programs, including rainfed area development, on-farm water management, soil health management, climate change adaptation strategies, and promotion of traditional farming systems like organic farming through schemes like Paramparagat Krishi Vikas Yojana (PKVY). PKVY specifically promotes organic farming through cluster approach, group certification, and farmer participation, aiming to reduce dependence on external inputs and promote sustainable land use.

Promotion of Farm Mechanization: Subsidies are provided for the purchase of agricultural machinery and equipment, and the establishment of Custom Hiring Centers (CHCs) for farm machinery. This aims to overcome labor shortages, reduce cultivation costs, improve efficiency, and enable timely farm operations, crucial for enhancing productivity and profitability, especially for small and marginal farmers who cannot afford to buy expensive equipment.

Digital Agriculture Mission: India is increasingly leveraging digital technologies like Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), blockchain, and drones in agriculture. Initiatives are underway to create a digital public infrastructure for agriculture, including a federated farmers database, unified farmer service interface, and an AgriStack. These aim to provide personalized advisory services, improve access to credit and insurance, enhance supply chain efficiency, and facilitate data-driven decision-making for farmers and policymakers.

Credit and Financial Inclusion

Access to formal credit remains a critical enabler for agricultural growth.

Interest Subvention Scheme (ISS): This scheme provides short-term crop loans up to ₹3 lakh at an effective interest rate of 4% per annum, provided farmers repay their loans on time. The government subsidizes the difference in interest rates to ensure affordable credit. This has significantly reduced the cost of borrowing for farmers and encouraged them to opt for institutional credit over informal moneylenders.

Financial Inclusion initiatives: Broader initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which aims to provide universal access to banking facilities, have indirectly supported agricultural growth by bringing more farmers into the formal financial system, enabling easier disbursal of subsidies and other financial benefits.

Diversification and Allied Sectors

Beyond traditional crop cultivation, focus has expanded to allied sectors for income diversification and holistic rural development.

Mission for Integrated Development of Horticulture (MIDH): This centrally sponsored scheme promotes holistic growth of the horticulture sector, including fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, and cocoa. It covers various aspects like production enhancement, post-harvest management, processing, and marketing, thereby boosting farmers’ income through diversification into high-value crops.

Blue Revolution (Fisheries) and White Revolution (Dairy): Specific missions have been launched to boost the fisheries and dairy sectors, recognizing their immense potential for rural income generation and nutritional security. Schemes like the Pradhan Mantri Matsya Sampada Yojana (PMMSY) focus on sustainable development of the fisheries sector through comprehensive interventions covering production, productivity, quality, technology, post-harvest infrastructure, and market linkages. Similarly, schemes under the National Dairy Plan aim to enhance milk production and productivity through better breeding, nutrition, and health management.

Research and Extension

Strengthening the research and extension system is crucial for developing and disseminating new technologies.

Indian Council of Agricultural Research (ICAR) and Krishi Vigyan Kendras (KVKs): ICAR, through its network of research institutes and KVKs (Farm Science Centres), plays a vital role in agricultural research, technology development, and dissemination. Recent efforts have focused on developing climate-resilient crop varieties, promoting sustainable farming practices, and improving the effectiveness of technology transfer mechanisms to farmers through various outreach programs and digital platforms.

Challenges and Ongoing Endeavors

Despite these extensive initiatives, the Indian agricultural sector continues to grapple with significant challenges. The average landholding size remains small and fragmented, limiting economies of scale. Climate change poses an existential threat, with increasing frequency of extreme weather events. Access to quality inputs, post-harvest infrastructure, and efficient markets remains uneven. Farmer debt and price volatility continue to be major concerns. The full potential of digital agriculture is yet to be realized due to connectivity issues and digital literacy gaps.

Ongoing efforts are focused on addressing these persistent issues. There is a continuous emphasis on improving the effectiveness of existing schemes, fostering greater collaboration between central and state governments, promoting public-private partnerships, and encouraging innovation. Focus areas include enhancing farmer collectives, strengthening value chains, promoting sustainable and climate-smart agriculture, and leveraging technology for better decision-making and service delivery. The long-term vision remains to transform Indian agriculture into a modern, resilient, profitable, and sustainable sector that ensures food security, enhances farmer prosperity, and contributes significantly to national economic growth.

The initiatives undertaken by India since 2010 represent a strategic and multi-pronged approach towards revitalizing its agricultural sector. From direct income support schemes like PM-KISAN, which provide a crucial financial safety net to millions of farmers, to risk mitigation mechanisms such as PMFBY, these policies have sought to address the immediate economic vulnerabilities of the farming community. Simultaneously, substantial investments in irrigation projects under PMKSY and comprehensive water management efforts have aimed at reducing rain dependence and enhancing productivity.

Furthermore, significant emphasis has been placed on market reforms and infrastructure development through initiatives like e-NAM, the Agricultural Infrastructure Fund, and the promotion of FPOs. While some market reforms, like the repealed Farm Laws of 2020, faced strong resistance, their underlying intent was to liberalize markets and empower farmers with greater choice and better prices. The continuous drive towards technological adoption, including soil health management, farm mechanization, and digital agriculture initiatives, underscores a commitment to modernizing farming practices for increased efficiency and sustainability. These diverse interventions collectively aim to create a more resilient, profitable, and equitable agricultural ecosystem in India.