01 Read
What happened
India's agriculture sector, employing over 54% of the workforce, has seen transformative policy interventions across crop science, rural credit, and allied sectors. Key schemes include PM-KISAN (₹6,000/year direct transfer), PM Fasal Bima Yojana (crop insurance), and NABARD-led rural credit programs. Allied sectors — animal husbandry, fisheries, and horticulture — now receive dedicated missions. MSP revisions, PM-KUSUM for solar irrigation, and the Agricultural Infrastructure Fund (₹1 lakh crore) define the current policy architecture reshaping Indian farming.
02 Understand
Why it matters
Indian agriculture policy operates across three interlocking layers: income support, risk mitigation, and infrastructure creation.
Income support is anchored by PM-KISAN (Pradhan Mantri Kisan Samman Nidhi), launched in February 2019, which transfers ₹6,000 per year in three equal installments of ₹2,000 directly to landholding farmers. Over 11 crore farmers are registered. This is a Direct Benefit Transfer (DBT) scheme under the Ministry of Agriculture and Farmers' Welfare.
Risk mitigation works through PM Fasal Bima Yojana (PMFBY), where farmers pay a premium of maximum 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops. The balance premium is shared equally by the Centre and States.
Infrastructure creation is channeled through the Agricultural Infrastructure Fund (AIF) — a ₹1 lakh crore financing facility for post-harvest management and agri-logistics. NABARD plays a central role in rural credit via Kisan Credit Card (KCC), short-term cooperative credit, and refinancing state cooperative banks.
Allied sectors are addressed through dedicated missions: PM Matsya Sampada Yojana (fisheries, ₹20,050 crore), National Animal Disease Control Programme (NADCP), and the National Horticulture Mission.
For NABARD aspirants, the exact financial outlays, premium percentages, installment structures, and implementing ministries are the most frequently blanked-out data points. For UPSC aspirants, the policy rationale — food security, farmer income doubling, and climate resilience — is the core angle.
Income support is anchored by PM-KISAN (Pradhan Mantri Kisan Samman Nidhi), launched in February 2019, which transfers ₹6,000 per year in three equal installments of ₹2,000 directly to landholding farmers. Over 11 crore farmers are registered. This is a Direct Benefit Transfer (DBT) scheme under the Ministry of Agriculture and Farmers' Welfare.
Risk mitigation works through PM Fasal Bima Yojana (PMFBY), where farmers pay a premium of maximum 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops. The balance premium is shared equally by the Centre and States.
Infrastructure creation is channeled through the Agricultural Infrastructure Fund (AIF) — a ₹1 lakh crore financing facility for post-harvest management and agri-logistics. NABARD plays a central role in rural credit via Kisan Credit Card (KCC), short-term cooperative credit, and refinancing state cooperative banks.
Allied sectors are addressed through dedicated missions: PM Matsya Sampada Yojana (fisheries, ₹20,050 crore), National Animal Disease Control Programme (NADCP), and the National Horticulture Mission.
For NABARD aspirants, the exact financial outlays, premium percentages, installment structures, and implementing ministries are the most frequently blanked-out data points. For UPSC aspirants, the policy rationale — food security, farmer income doubling, and climate resilience — is the core angle.
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