Farmers’ income rises 138% in 10 yrs

Agriculture sector posted record decade-long expansion, supported by MSP reforms, procurement growth and welfare initiatives

Farmer incomes in India have risen by 138% during Prime Minister Narendra Modi’s tenure, while the agriculture sector recorded its strongest decade-long growth since Independence, according to Ramesh Chand.

 The NITI Aayog member said India’s agriculture and allied sectors posted an average annual growth rate of 4.45% between 2015 and 2026, marking the highest sustained growth achieved by the sector over any 10-year period since Independence.

  “This is historically the highest growth rate. Indian agriculture never achieved 4.4% growth continuously over 10 years before 2015,” Chand said.He added that the government’s goal of doubling farmers’ income, announced in 2016-17, had effectively been achieved within a few years.

 According to estimates prepared by Chand, farmers’ income doubled between 2016 and 2022, when India completed 75 years of Independence.  Chand credited several policy initiatives for the improvement, particularly the revised Minimum Support Price (MSP) formula introduced in 2018. 

Under the formula, farmers were assured MSP at least 50% higher than paid-out costs along with family labour expenses.

 He described the MSP reform as “the biggest single step” taken to improve farm incomes in India’s agricultural history. Expanded procurement and better price support, he said, encouraged higher production, greater technology adoption and productivity gains.

  The economist also stated that India’s agricultural growth rate is now among the highest globally for major farm-producing nations. He noted that India has overtaken China in agricultural growth momentum during the current decade.

  Chand further highlighted the role of welfare schemes such as PM-Kisan and free foodgrain distribution programmes in improving rural welfare and boosting agricultural investments. 

 According to him, many farmers use PM-Kisan instalments for buying seeds, fertilisers and farm inputs.  He also pointed to India’s efforts in promoting millets and climate-resilient farming. India’s initiative led to 2023 being recognised as the International Year of Millets by the Food and Agriculture Organization.