A government incentive given to farmers, agricultural businesses, and organisations is known as an agricultural subsidy or incentive. Additionally, the goal is to manage the supply of agricultural commodities and support their income. Do you know that 2% of India’s GDP is made up of agricultural subsidies? And the overall amount of the farm income-based subsidy is 21%?

Here are some of the best agricultural ministries that have recently introduced agricultural subsidies to best help Indian farmers!

Top 5 Agricultural Subsidies for Indian Farmers

1. Fertilizer Subsidy

The subsidy supports the distribution of inexpensive, non-chemical fertilisers to farmers, increasing their ability to produce more food. Additionally, the subsidy guarantees that the farmers receive:

  • Stable prices for fertiliser
  • inexpensive inputs
  • Simple access to a sufficient supply of fertilisers

2. Seed Subsidy

Indian farmers can get affordable high-yield seeds from the Indian government. In addition, the Indian government offers capital investment subsidies in place of a national seed production initiative in order to boost seed production in India.

This programme intends to provide Indian farmers with high-yielding seed varieties so they can become self-sufficient.

3. Credit Subsidy

The difference between the interest that farmers charge and the actual purchasing cost is known as a credit subsidy. Due to the lack of collateral, loans are typically disadvantageous to farmers. This subsidy, therefore, aids farmers in gaining access to the credit market and aids them in avoiding dealing with shady local money lenders.

Additionally, the loan assists farmers in purchasing agricultural tractors and equipment, including cultivators, happy seeders, rotavators, and other farming tools.

However, because they demand high credit rates, local lenders are unreliable. Furthermore, even when farmers have collateral, many banking institutions refuse to offer them loans for agriculture. This is either due to their opposition to lending for agricultural requirements or their stringent policy for needs in urban areas. In addition, regardless of whether they have collateral, farmers can access lending facilities with cheaper interest rates thanks to the loan subsidy.

4. Agriculture Equipment Subsidy

The government offers refunds and incentives for the purchase of agricultural tractors and related equipment as part of the Agricultural Mechanization (SMAM) scheme. This programme intends to give every small farmer the freedom to buy agricultural equipment without obstacles.

In order to increase the output of smallholder farmers, other programmes like the Rashtriya Krishi Vikas Yojna (RKVY) and the National Food Security Mission (NFSM) also encourage the purchase of agricultural products.

5. Agriculture Infrastructure Subsidy

An important factor in increasing agricultural productivity and output is good infrastructure. Through this subsidy, the government enhances operations for production and sales. Additionally, farmers’ expenses frequently increase as a result of the cost of upgraded storage facilities, transportation, electricity, market information, etc.

By funding the infrastructure or lowering the fee farmers must pay to use these services, the government hopes to reduce these expenses under this subsidy.


The Indian government has now provided Indian farmers with enough assistance to enable their farming operations without difficulty. The top 8 subsidies that farmers can use at any time to lessen their financial loads and improve their farming potential are listed above. These subsidies, which farmers can ask for to reduce their costs, are also publicly publicised on government websites.