Agricultural productivity gains in India are increasingly the result of coordinated in-situ and post-harvest interventions, the Economic Survey 2025-26 has stated. Tabled in Parliament by Union Finance Minister Nirmala Sitharaman, the Survey highlights that sustained policy focus on input quality, irrigation, soil health, mechanisation, market infrastructure, price support and institutional credit has generated significant positive outcomes for the farm sector.
Quality Seeds and Crop Genetics
Access to quality seeds remains a foundational driver of farm productivity. The Sub-Mission on Seeds and Planting Materials (SMSP), launched in 2014-15, focuses on strengthening seed production, processing, certification and distribution. Under SMSP:
- 6.85 lakh Seed Villages were established
- 1,649.26 lakh quintals of quality seeds were produced
- 2.85 crore farmers benefited
To further strengthen the seed ecosystem, the Union Budget 2025-26 announced a National Mission on High-Yielding Seeds, aimed at expanding climate-resilient varieties, improving the research ecosystem and enhancing commercial availability of over 100 new seed varieties.
Irrigation Expansion and Water-Use Efficiency
Assured irrigation remains central to productivity, resilience and crop diversification. Under the Per Drop More Crop (PDMC) programme, the government provides:
- 55 per cent financial assistance to small and marginal farmers
- 45 per cent assistance to other farmers
This support has accelerated adoption of drip and sprinkler systems, contributing to an increase in the gross irrigated area as a share of gross cropped area from 41.7 per cent in 2001-02 to 55.8 per cent in 2022-23.
Soil Health and Nutrient Management
Declining soil fertility, particularly loss of soil organic carbon, remains a key constraint. To address this, the government has implemented the Soil Health Management (SHM) and Soil Health Card (SHC) schemes under the National Project on Management of Soil Health & Fertility. Key outcomes include:
- Promotion of integrated nutrient management, combining chemical fertilisers with organic manures and bio-fertilisers
- Issuance of over 25.55 crore Soil Health Cards (as of 14 November 2025)
Fertiliser governance has improved through nutrient-based pricing, neem-coated urea, Aadhaar-linked PoS verification, and the Integrated Fertiliser Management System, strengthening transparency and supply-chain control.
Farm Mechanisation and Collective Access
To improve operational efficiency and reduce labour constraints, mechanisation has been promoted under the Sub-Mission on Agricultural Mechanisation (SMAM). Between 2014-15 and 2025-26:
- 25,689 Custom Hiring Centres (CHCs) were established
- 558 CHCs were added in 2025-26 alone (as of 30 October 2025)
CHCs enable small and marginal farmers to access modern machinery without high capital investment, improving productivity and timeliness of operations.
Infrastructure Creation and Market Access
Storage and Marketing Infrastructure
Under the Agriculture Marketing Infrastructure (AMI) sub-scheme of ISAM:
- 49,796 storage projects were sanctioned with ₹4,832.70 crore released
- 25,009 marketing infrastructure projects received ₹2,193.16 crore in subsidy (as of 31 December 2025)
Agriculture Infrastructure Fund (AIF)
The AIF provides a ₹1 lakh crore financing facility (FY 2020-21 ~ FY 2025-26, with support extending to FY 2032-33), offering interest subvention and credit guarantees for post-harvest and community farming infrastructure.
Digital Markets and Farmer Collectives
The e-NAM platform, launched in 2016, has strengthened price discovery and market access. By 31 December 2025:
- 1.79 crore farmers registered
- 2.72 lakh traders onboarded
- 4,698 FPOs integrated
- 1,522 mandis linked across 23 States and 4 UTs
The FPO Scheme (2020), with an outlay of ₹6,860 crore, has achieved its target of 10,000 registered FPOs by December 2025, strengthening collective bargaining and market participation.
Price and Income Support
Given continued exposure to weather and price volatility, income support remains critical. The government announces MSP for 22 mandated crops, following the principle of 1.5 times the cost of production introduced in Budget 2018-19.
MSPs were increased for all mandated crops for Kharif Marketing Season 2025-26 and Rabi Marketing Season 2026-27.
Under PM-KISAN:
- ₹4.09 lakh crore released
- Over 11 crore farmers benefited
- Payments made in 21 instalments since inception
Agricultural Credit Expansion
Institutional credit remains a key enabler of farm investment.
- Ground Level Credit (GLC) reached ₹28.69 lakh crore in FY 2024-25, exceeding the target of ₹27.5 lakh crore
- ₹15.93 lakh crore short-term loans
- ₹12.77 lakh crore term loans
- Kisan Credit Card (KCC):
- 7.72 crore operative accounts
- ₹10.20 lakh crore outstanding (as of 31 March 2025)
Under the Modified Interest Subvention Scheme (MISS):
- Loans provided at 7 per cent interest
- 3 per cent incentive for prompt repayment
- ₹1.77 lakh crore disbursed as subsidy between FY 2014-15 and FY 2025-26
Conclusion
The Economic Survey 2025-26 underscores that coordinated investments in quality inputs, irrigation, soil health, mechanisation, marketing infrastructure, price assurance and institutional credit have materially strengthened agricultural productivity and farm incomes. This integrated policy approach, spanning production, post-harvest management and income support, has laid the foundation for a more resilient, market-linked and sustainable agricultural sector. (Source: PIB PR ID 2219954)
Economic Survey of India 2025-26 dated 29/01/2026