Article by- Prakhar Tripathi
Introduction
Farm subsidies in 2025 are a form of government financial support paid to farmers and agribusinesses to reduce their agricultural input expenditures and supplement their income. In India, farm subsidies are an integral part of the government budget, as around 600 million people depend on agriculture.
Agricultural subsidies ensure that significant inputs such as fertilisers, seeds, and irrigation equipment are available to farmers at concessional prices much lower than market rates.
Types of Farm Subsidies in 2025
There are two major types of farm subsidies provided by the government to support farmers and agriculture sector growth:
● Direct Subsidies
This type of agricultural subsidy is usually in the form of direct cash transfers to farmers or direct farm payments.Direct farm subsidies play a vital role in increasing the purchasing capacity of farmers, boosting rural livelihoods, and improving the standard of living for underprivileged rural communities.
● Indirect Subsidies
Indirect agricultural subsidies are given by the government in a non-cash form, such as agricultural credit facilities, loan waivers, reduced irrigation costs, reduced electricity bills for farmers, and fertiliser subsidies or seed and pesticide subsidies.
India’s 2025 Farm Support Schemes
There are many government subsidy schemes for farmers in India 2025 which help them excel in the agricultural sector. Popular examples include the fertiliser subsidy scheme, irrigation subsidy in India, electricity subsidy for agriculture, PM-KISAN Yojana, the Agriculture Infrastructure Fund, and the Kisan Credit Card (KCC) scheme. These agriculture support schemes aim to reduce the cost of farm inputs.
How Subsidies Help Farmers?
Farm subsidies in India 2025 help farmers protect themselves from unusual price shocks in agricultural markets. Government subsidy schemes are beneficial for improving agricultural production, as they enable farmers to adopt modern farming technology and maintain food security in India.
By providing affordable farm inputs, subsidies make it possible for small and marginal farmers to receive financial support and assistance, which in turn generates employment in the farm sector and promotes sustainable rural development.
Role of Farm Subsidies
Farm subsidy is helpful for enhancing agricultural productivity by providing financial support to farmers for their needs like seeds, fertilizer, machinery, and many more, which play a vital role in enhancing the agricultural sector.
It is important for farmers because, due to unavoidable issues, many farmers bear huge losses, which significantly impact their income. To minimize this, farm subsidies are a small effort by the government to provide them with a better life.
Key Figures
● According to the 2011 census, about 54.6% of people in India are engaged in agriculture and related activities.
● According to India's geographical area, about 54.8% cultivable land is available.
● Agriculture's share in India's GDP is about 16% in the financial year 2024–25.
Conclusion
As with any policy, farm subsidies have both positive and negative impacts. India continues to run multiple agricultural subsidy schemes — from PM-KISAN Yojana to Kisan Credit Card Scheme and fertiliser subsidies to boost farmer income and encourage the younger generation in agriculture.
However, due to the lack of awareness of government subsidy schemes for farmers, many small and marginal farmers who need them the most are unable to access the benefits. There is an urgent need for transparent farm subsidy distribution.