Government Subsidies for Farmers in India – List of Subsidy Program

By | October 3, 2017

Subsidies to Farmers under Various Government Schemes

Agricultural Subsidies in India: India is a land of agriculture. It is the largest livelihood provider, especially to rural India. It also contributes significantly to the GDP of India, 13.5% of GDP is from agrarian sector. Again irrigation and other facilities are not available to all of the cultivable land and farmers have to depend on rain for farming.

Rain pattern is different in different parts of India and rainfall can sometimes be extreme and drought can also occur other times. To help sustainable agriculture and holistic rural development, the government has taken various initiatives and different policies, schemes, loans, subsidies, credit etc are provided to farmers.

Subsidies to Farmers

Rashtriya Krishi Vikas Yojana

Subsidies to Farmers


Rashtriya Krishi Vikas Yojana (RKVY) is a special Additional Central Assistance Scheme. It was launched in 2007 to develop a strategy to meet needs of farmers. It takes into account agro-climatic conditions and natural resource issue. Central assistance is provided to State plans for land reforms to increase agriculture productivity significantly.

The scheme offers 100% grant to farmers to undertake various projects based on local requirements, natural resources, geographical and climatic conditions and cropping patterns in the area. State level committees are authorized to sanction the grant under the scheme. It is aimed to bridge the yield gaps in important crops and increase the income of the farmers.

National Food Security Mission


National Food security mission has been launched to achieve addition production of wheat, rice, pulses, cereal, and paddy. The mission is to be achieved through area expansion and increased productivity in a sustainable way. The scheme helps farmers restoring soil fertility, productivity and ultimately increases the income of farmers.

Farmers are provided necessary training on how to increase crop yield and financial assistance is provided to them for plant protection, liming acid soils, chemicals, bio-fertilizers, miscellaneous expenses etc. The fund for the mission is provided by the central government to state government. The state government releases it to farmers in the form of various incentives through district officers.

Bringing Revolution to Eastern India Scheme

The scheme is for seven eastern states of India, namely; Assam, Bihar, Chhattisgarh, Eastern Uttar Pradesh (Purvanchal), Jharkhand, Odisha, and West Bengal. It is a sub-scheme of RKVY. It addresses constraints pertaining to rice-based cropping pattern in these states. The scheme is aimed at increasing production of rice, to promote cultivation of rice, to develop water harvesting and water resources, promote harvest technology, market linkage etc.

Financial assistance under the scheme is provided for training for improvement in the system. 50% subsidy limited to Rs 5,000 per quintal will be provided for the production of hybrid seed, 50% for certification of HYVs limited to Rs 1000 per quintal. Rs 5000 per quintal for distribution of hybrid rice seeds will be provided.

Subsidy for 50% of nutrient and soil management will be provided which is limited to per hectare Rs 500 for micro-nutrient, Rs 1000 for lime, Rs 750 for Gypsum and Rs 300 for bio-fertilizers. 50% subsidy will also be offered for pest management limited to per hectare Rs 500 for pesticides and Rs 500 for weedicides etc.

National Horticulture Mission


The National Horticulture Mission (NHM) is aimed at enhancing horticulture production and improving soil nutrients. The scheme covers state other than northeastern states, Sikkim, Andaman & Nicobar and Lakshadweep, Jammu & Kashmir, Himachal Pradesh and Uttarakhand.

85% of funding for the scheme is provided by the central government and 15% by the state government. Farmers are providing financial assistance for developing gardens of horticulture crop. 50% subsidy is provided limited to Rs 15,000 per hectare.

Subsidies for Markets

Various subsidies are provided to set up markets to meet needs of farmers.

Terminal Market Complex: To develop a terminal market complex, subsidies are provided by the government. The subsidy can be from 25% to 40%. Such markets link farmers to markets and help reduce wastages by shortening the supply chain of perishables. TMC provides various facilities which include cleaning, sorting, packing, storage, cold storage, transportation etc.

Rural Primary Market: Subsidies are provided to set up rural primary markets. Rs 25 lakh is considered for the project of market development and 40% subsidy is provided for the market in general rural area; whereas 55% subsidy is provided for the market in the hilly, tribal or backward region.

Wholesale Market: To set up wholesale markets in the rural area, subsidies are provided for the project cost of up to 100 crores. 25% subsidy is provided for the wholesale market in the rural area and 1/3rd of the project cost in the hilly and backward area.

PHM Component: To develop infrastructure post-harvest management, subsidies of up to 35% to 50% is provided. Post-harvest management is essential to maintain the quality of fruits, vegetables, and root crops. Proper transportation, distribution, and storage facilities are important to reduce wastage and quality maintenance.

Subsidies to farmers under various schemes help farmers for better crop yield, better earning and adequate food to the society. As the agrarian sector is the largest employment provider in India, development in the sector contributes to developed and prosperous India!

More Related Queries:

  • Agricultural subsidies in India
  • List of farmers receiving government subsidies
  • Milk/rubber/dairy/hill/young farmers subsidy
  • MP farmers subsidy tracking system


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