Blog
Subsidy in Agriculture:A Boon for Farmers and the Backbone of Food Security
Agriculture is the lifeline of India, employing over half the population and significantly contributing to the country’s GDP. Yet, farmers often face challenges like unpredictable weather, high input costs, fluctuating market prices, and limite.kaccess to modern technology. To support farmers and ensure stable food production, agricultural subsidies play a crucial role. But what are these subsidies, and how do they benefit Indian farmers?
What Is a Subsidy in Agriculture?
A subsidy in agriculture is financial assistance provided by the government to farmers or agribusinesses. It helps reduce the cost of farming inputs, improve infrastructure, and promote sustainable agricultural practices. These subsidies aim to:
• Ensure food security
• Make agriculture more profitable
• Promote rural development
• Encourage innovation and modernization in farming
How to Avail Agricultural Subsidies?
Farmers can avail subsidies through:
• State Agriculture Departments
• Krishi Vigyan Kendras (KVKs)
• Online portals such as PM-Kisan and agrimachinery.nic.in
• Registered agriculture project companies and consultants who help in project execution and subsidy facilitation
Types of Agricultural Subsidies in India
1. Fertilizer Subsidy:
The government offers subsidies on urea, DAP, MOP, and other fertilizers to ensure affordability for farmers.2. Irrigation Subsidy: Financial support is provided for setting up drip irrigation, sprinkler systems, borewells, and solar-powered pumps to enhance water-use efficiency.
3. Seed Subsidy: High-yielding, disease-resistant seed varieties are distributed at subsidized rates to improve productivity.
4. Power and Fuel Subsidy: Electricity for irrigation and diesel for machinery use are often subsidized, reducing operational costs.
5. Credit Subsidy: Short- and long-term agricultural loans are provided at reduced interest rates through Kisan Credit Cards (KCC) and other schemes.
6. Machinery and Equipment Subsidy: Subsidies are available for tractors, harvesters, rotavators, and other farm machinery under schemes like the Sub-Mission on Agricultural Mechanization (SMAM).
7. Crop Insurance Subsidy: The Pradhan Mantri Fasal Bima Yojana (PMFBY) helps farmers insure their crops against natural calamities and pests at minimal premium costs.
8. Polyhouse and Greenhouse Subsidy: Under schemes like MIDH (Mission for Integrated Development of Horticulture), the government provides up to 50–75% subsidy for polyhouse farming to promote controlled-environment agriculture.
9. Organic and Natural Farming Subsidy: Support is offered for organic inputs, certification, and promotion under schemes like Paramparagat Krishi Vikas Yojana (PKVY).
Benefits of Agricultural Subsidies
• Cost Reduction: input and operational costs
• Technology Adoption: Encourages use of modern equipment and methods
• Higher Yields: Improves productivity and profitability
• Sustainability: Promotes eco-friendly and efficient farming techniques
• Food Security: Ensures stable production to feed the nation
• Risk Management: Helps mitigate losses due to climate or market fluctuations
Challenges and the Way Forward
While subsidies are beneficial, challenges like delayed disbursement, corruption, and lack of awareness persist. The way forward lies in:
• Digitalization and transparency
• Direct Benefit Transfer (DBT) models
• Awareness campaigns and farmer training
• Public-private partnerships to streamline access
Vision
IGO Agritech Farms vision is to be leading pan India brand in precision agriculture and Agri engineering space.
Mission
IGO Agritech Farms Mission is to win lifetime loyal customers across pan India by farming every sqm of fertile/nonfertile open outdoor land, indoor space and rooftop space of buildings. Its mission is to generate profits and passive income for its customer through various precision farming techniques.
Our Brands
