New Policy : In a landmark move aimed at transforming the agricultural sector, the central government has approved a comprehensive new policy designed to double farmers’ income in the coming years. This decision, taken during a recent Union Cabinet meeting, is part of a broader vision to enhance rural prosperity, reduce income disparity, and promote sustainable farming practices. Let’s explore the key highlights, policy framework, and how these changes will directly impact farmers across the country.
What Is the New Policy Aimed At Doubling Farmers’ Income?
The new agricultural policy comes as a follow-up to the government’s 2016 announcement of a roadmap to double farmers’ income by 2022. While progress was made, the recent policy approvals mark a renewed and structured push to achieve this goal. The policy focuses on technological innovation, infrastructure support, minimum support price reforms, and financial empowerment for farmers.
Key Features of the New Agricultural Policy:
- Doubling farm income through increased productivity and market reforms
- Expanding MSP coverage and introducing price deficiency payment systems
- Promoting organic and climate-resilient farming
- Encouraging agro-processing and rural entrepreneurship
- Facilitating direct-to-consumer farmer markets
- Strengthening farmer producer organizations (FPOs)
- Providing farm credit access at subsidized interest rates
- Expanding irrigation and rural warehousing infrastructure
Major Cabinet Decisions Affecting Farmers
The Cabinet meeting approved several initiatives aligned with the goal of enhancing farm income. These include policy changes, budget allocations, and institutional support mechanisms.
Approved Measures Include:
- Revision of Minimum Support Price (MSP) for key crops
- Launch of a new Agricultural Infrastructure Fund worth ₹1.5 lakh crore
- Expansion of the PM-KISAN scheme to include more marginal farmers
- Introduction of solar pump subsidies under PM-KUSUM
- Increased allocation for crop insurance under PMFBY
- Nationwide Soil Health Card expansion
- Digital AgriMarket Platform (e-NAM) upgrade for better market access
- Credit guarantee for FPOs to encourage cooperatives and self-help groups
See more : LIC’s One-Time Investment Plan
Key Crops with Revised MSP (2025-26 Season)
| Crop Type | Old MSP (₹/quintal) | Revised MSP (₹/quintal) | Percentage Hike | Procurement Target (Lakh Tonnes) | Coverage Area (Lakh Hectares) | Profit Margin Over Cost (%) | Implementation Date |
|---|---|---|---|---|---|---|---|
| Wheat | 2,125 | 2,400 | 12.94% | 340 | 300 | 50% | Oct 2025 |
| Paddy | 2,040 | 2,300 | 12.75% | 500 | 400 | 55% | Oct 2025 |
| Maize | 1,970 | 2,200 | 11.16% | 120 | 100 | 45% | Oct 2025 |
| Moong | 7,275 | 8,000 | 9.96% | 15 | 10 | 65% | Oct 2025 |
| Groundnut | 5,850 | 6,450 | 10.26% | 30 | 20 | 55% | Oct 2025 |
| Soybean | 4,600 | 5,200 | 13.04% | 40 | 35 | 50% | Oct 2025 |
| Cotton (Medium) | 6,380 | 7,000 | 9.71% | 60 | 50 | 60% | Oct 2025 |
PM-KISAN Scheme Expansion: What’s New?
The Cabinet has also expanded the reach of PM-KISAN, the flagship income support scheme:
| Feature | Earlier Provision | New Update (2025) |
|---|---|---|
| Annual Income Support | ₹6,000 per year | ₹8,000 per year |
| Payment Frequency | 3 installments of ₹2,000 | 4 installments of ₹2,000 |
| Eligible Landholding | Up to 2 hectares | Up to 4 hectares |
| Number of Beneficiaries | 11 crore+ | 14 crore (estimated) |
| Transfer Mode | Direct Bank Transfer (DBT) | Same with Aadhaar linkage |
| Additional Benefits | Crop advisory via SMS | AI-based crop suggestions |
Other Schemes Supporting Income Growth
To complement direct support and market reforms, the government has revamped existing programs and introduced new initiatives:
| Scheme Name | Objective | New Enhancements 2025 |
|---|---|---|
| PMFBY | Crop insurance coverage | Increased compensation, faster settlement |
| e-NAM | Online agri-market integration | Now covers 1,500+ mandis |
| PM-KUSUM | Solar pump subsidy for farmers | Covers 20 lakh more farmers |
| Agri Infra Fund | Infrastructure investment | Expanded to ₹1.5 lakh crore |
| KCC Loans | Low-interest credit to farmers | Limit increased to ₹3 lakh |
| Soil Health Mission | Soil test-based nutrient management | More test centers launched |
Benefits for Farmers – How Will Income Actually Rise?
Here’s how the new initiatives will help double or significantly increase farm income:
- Better Prices: Higher MSPs and market access will improve income per unit produce.
- Reduced Input Costs: Subsidized solar pumps, credit, and fertilizer rationalization will lower operational costs.
- Increased Output: Promotion of modern techniques and better irrigation support boosts yield.
- Diversified Income Sources: Encouraging horticulture, fisheries, and livestock farming.
- Market Linkages: Through upgraded e-NAM, FPO platforms, and farm-to-market transport subsidy.
Challenges and Government Response
While the policies are ambitious, there are notable challenges in implementation:
- Land ownership disputes: Government is planning digitized land records to resolve conflicts.
- Awareness and Literacy: A nationwide awareness drive is set to be launched for digital tools and scheme benefits.
- Climate impact: Focus on climate-resilient seeds and insurance will mitigate risk.
The new government policy is a game-changer for Indian agriculture. By combining price support, market reforms, infrastructure development, and direct income schemes, the Centre aims to uplift the standard of living for millions of farmers. While the journey is complex, the comprehensive nature of this policy makes it one of the most powerful tools in recent years to achieve the goal of doubling farmers’ income. Farmers, stakeholders, and policy experts alike are optimistic about its potential to usher in a new era of agricultural prosperity.
The data and figures mentioned in the article are based on the most recent announcements and may be subject to updates by respective ministries or departments.
