Financial Assistance in Agriculture: Forms, Policy Push, Gaps
Why in the news
Farmers face erratic weather, volatile markets and weak formal credit, and many fall into costly informal debt, so structured support matters.
Key facts
- Benefits: eases liquidity at sowing, harvest and sale; funds technology and inputs; cushions droughts, floods and pests.
| Form of assistance | What it offers |
|---|---|
| Institutional credit | Banks, cooperatives, NBFCs |
| Subsidies | Seeds, fertiliser, irrigation, power, machinery |
| Insurance | PMFBY against crop loss |
| Income support | PM-Kisan: ₹6,000 a year |
| Interest subvention | Concessional short-term crop loans |
Recent policy push
- KCC extended to livestock and fisheries.
- Digital lending; solar pumps, micro-irrigation, organic farming; data analytics and AI for credit scoring.
Challenges
- Reliance on moneylenders, low awareness, fragmented holdings, delayed insurance claims.
Way forward
- Deeper rural credit, timely subsidies and claims, financial literacy, and value-chain finance linking farmers with agri-businesses and FPOs.
Exam angle
- PM-Kisan amount: ₹6,000 per year.
- Card extended to livestock and fisheries: KCC.