India's farmer welfare framework rests on three interlocking pillars: PM-Kisan Samman Nidhi, which transfers ₹6,000 annually to landholding farmers; Pradhan Mantri Fasal Bima Yojana, which insures crops against natural risks; and a Minimum Support Price regime covering 23 crops. Together these aim to guarantee income support, risk coverage, and price assurance. The government has progressively expanded MSP margins above cost of production, with recent hikes framed as fulfilling the C2+50% principle.

India's agricultural safety net operates through three distinct mechanisms that together address income, risk, and price.

**PM-Kisan Samman Nidhi (2019):** Provides direct income support of ₹6,000 per year in three equal instalments of ₹2,000 to land-holding farmer families. Funded entirely by the Central Government. Over 11 crore farmers are registered. The scheme uses Aadhaar-linked accounts for direct benefit transfer, eliminating intermediaries.

**PM Fasal Bima Yojana (PMFBY, 2016):** Replaces earlier insurance schemes with a uniform, actuarial-premium-based model. Farmers pay a capped premium — 2% for Kharif, 1.5% for Rabi food and oilseed crops, 5% for commercial/horticultural crops — with the Centre and states sharing the residual actuarial premium. Coverage includes prevented sowing, mid-season adversity, post-harvest losses, and localised calamities. A restructured PMFBY from 2020 made it voluntary for all farmers.

**MSP Framework:** The Commission for Agricultural Costs and Prices (CACP) recommends MSPs for 23 crops. The government targets at least 50% returns over the all-India weighted average cost of production (A2+FL). Critics argue the C2 cost basis (which includes imputed land rent) gives higher support; the current policy uses A2+FL. Procurement happens through agencies like FCI (food grains) and NAFED (oilseeds, pulses).

The combined architecture attempts to delink farmer income from weather shocks and market volatility — a key policy design tested by examiners.