New Delhi (ABC Live):

This Performance Audit reviews the written reply presented by the Minister of State for Agriculture & Farmers Welfare, Shri Ramnath Thakur, in the Lok Sabha on 02 December 2025. The Government highlighted a six-pillar strategy, supported by more than 30 major schemes, aimed at enhancing farmer incomes, diversifying livelihoods, and strengthening agricultural stability.

However, although the policy ecosystem appears broad, the reply provides limited measurable outcomes, which consequently restricts a clear evaluation of its effectiveness. Moreover, scheme adoption levels vary significantly across states, and therefore, the actual impact on farmer incomes remains uneven. Furthermore, despite the Government’s focus on alternative income sources, concrete evidence of such income gains is missing from the reply.
For a related comparative analysis, readers may also refer to:
https://abclive.in/2025/08/20/farm-support-schemes-performance-audit-2025/

Audit Framework

To ensure a structured evaluation, this audit applies six parameters:

1. Policy Design Quality

2. Budget Adequacy and Utilisation

3. Outcome Effectiveness

4. Institutional Convergence

5. Beneficiary Outreach

6. Sustainability and Climate Readiness

Consequently, the audit offers balanced insights into policy intent, operational efficiency, and implementation challenges.

Clarity of Policy Objectives

The Government’s reply outlined six major objectives:

• Enhance crop productivity

• Reduce cultivation costs

• Ensure remunerative prices through MSP and markets

• Promote agricultural diversification

• Strengthen value addition and post-harvest infrastructure

• Support climate-resilient farming practices

Audit Rating: 8/10

Strengths

• The objectives are comprehensive and aligned with national priorities for doubling farmers’ income.

• Additionally, they combine short-term price stabilisation with long-term structural resilience.

Gaps

• However, the reply does not specify measurable targets or timelines.

• Consequently, progress cannot be tracked with precision.

Budget Support: Scale, Growth, and Implications

The Minister reported that the budget allocation increased from ₹21,933.50 crore (2013–14) to ₹1,27,290.16 crore (2025–26). This represents a substantial fiscal expansion.

Audit Rating: 9/10

Strengths

• The steady rise in funding clearly demonstrates strong political and fiscal commitment.

• Moreover, long-term initiatives such as Natural Farming, AIF, and Oil Palm Mission have received consistent support.

Gaps

• However, utilisation data was not mentioned.

• Furthermore, several schemes exhibit regional imbalances because states absorb funds at different rates.

Assessment of Major Schemes

Because the Government listed a wide range of schemes, this audit groups them for clarity and coherence.

A. Income Protection (PM-KISAN, PM-KMY, Insurance, MISS)

Rating: 8.5/10

Strengths

• PM-KISAN offers predictable and direct income support.

• Additionally, the expansion of crop insurance coverage reduces risk during climate uncertainties.

Gaps

• However, insurance claim processing remains slow in many regions.

• Meanwhile, PM-KMY enrolment continues to be lower than expected.

B. Diversification & Value Addition

(FPOs, Honey Mission, Natural Farming, CDP, Oilseeds Mission, Horticulture, Bamboo)
Rating: 7.5/10

Strengths

• These schemes broaden the earning opportunities for farmers, and furthermore they promote activities that offer higher value than traditional crops.

• Also, the FPO scheme has expanded rapidly across multiple states.

Gaps

• However, market linkages remain weak despite the large number of FPOs formed.

• Moreover, the reply does not share any data about income improvements from diversification.

C. Infrastructure & Mechanisation

(AIF, SMAM, PDMC, SMSP)
Rating: 7/10

Strengths

• AIF supports storage, processing, and logistics, and consequently reduces post-harvest losses.

• PDMC promotes micro-irrigation, which therefore improves water-use efficiency.

Gaps

• However, small and marginal farmers still lack access to high-end machinery.

• Furthermore, micro-irrigation adoption remains highly state-specific and uneven.

D. Digital Agriculture & Innovation

(Digital Agriculture Mission, Namo Drone Didi, AgriSURE)
Rating: 7/10

Strengths

• Digital tools and drones improve precision and reduce labour burdens.

• Moreover, Drone Didi is emerging as an important women-led rural workforce model.

Gaps

• However, digital divide issues persist, and many farmers struggle with connectivity and training.

• Additionally, the reply does not include any adoption numbers for these initiatives.

MSP Policy Performance

MSP remains a central income stabiliser. According to the reply, MSP is calculated at least 50% above production cost for 22 mandated crops.

Audit Rating: 8/10

Strengths

• MSP increases have remained steady for several years, and consequently, they provide a reliable safety net.

• Moreover, MSP helps maintain price parity across diverse crop categories.

Gaps

• However, procurement levels vary sharply across crops and states.

• In contrast to cereals, procurement for oilseeds and pulses remains limited.

Gaps Related to “Alternative Income Sources”

Although the reply lists many schemes intended to diversify incomes, it does not provide outcome-based data.
For instance:

• No income trends from beekeeping

• No yield or cost-savings data from Natural Farming

• No revenue or turnover data for FPOs

• No agri-startup performance metrics

• No adoption numbers for agroforestry or bamboo activities

Consequently, the reply focuses more on scheme presence than on scheme impact.

Institutional Convergence Challenges

The Minister clarified that the Agriculture Ministry does not handle agri-tourism. Instead, rural tourism is managed by:

• Ministry of Tourism

• State Governments

Audit Insight

Because income diversification often requires cross-ministry coordination, this separation weakens opportunities for integrated rural development. Moreover, agri-tourism could significantly enhance farmer incomes, yet it remains disconnected from agricultural policy.

Sustainability & Climate Readiness

Several schemes—such as Natural Farming, Bamboo Mission, RAD, Oilseed Missions, and Agroforestry—support climate-aligned agriculture.

Audit Rating: 7.5/10

Strengths

• These programs encourage low-input, sustainable methods and improve long-term resilience.

• Additionally, they promote soil health and efficient water use.

• Gaps
• However, the reply does not provide climate-impact data.
• Therefore, it remains unclear whether these schemes have reduced losses due to extreme weather.
• Audit Summary Scorecard

• Parameter	Score (10)	Notes
  Policy Clarity	8	Strong framework, but no measurable targets
  Budget Strength	9	High and rising allocations
  Outcome Reporting	7	No clear impact metrics shared
  Inter-Ministry Convergence	6	Weak coordination on rural tourism & enterprises
  Beneficiary Adoption	7	Varies widely across states
  Climate Readiness	7.5	Good intent; limited evidence

• Overall Score: 7.4 / 10
• Key Recommendations

1. Shift from scheme listing to outcome reporting.
   Consequently, annual reports should include income gains, adoption rates, and impact metrics.
2. Create a diversification index for all states.
   This will help track shifts toward horticulture, oilseeds, agroforestry, beekeeping, and bamboo.
3. Strengthen market linkages for FPOs.
   Moreover, procurement, logistics, branding, and digital platforms must be improved.
4. Ensure effective cross-ministry coordination.
   Agriculture, Tourism, MSME, and Rural Development should jointly drive agri-tourism and rural enterprise growth.
5. Publish MSP procurement ratios regularly.
   Consequently, farmers will better understand actual MSP benefits.
6. Build a real-time dashboard for agri-startups and rural enterprises.
   Additionally, tracking gender distribution and income outcomes will support better policymaking.
7. Report climate-impact metrics annually.
   For example, soil-health improvements, water savings, and reduced crop losses.

Conclusion

In conclusion, the Minister’s reply outlines a large, diverse, and well-funded strategy. However, the absence of clear outcome indicators limits transparency. Moreover, effective execution will require stronger institutional convergence, improved adoption support, and consistent performance measurement.

Ultimately, the Government’s framework holds significant potential, yet its success will depend on ensuring that schemes produce visible, measurable, and sustained improvements in farmer incomes.

Press Information Bureau (PIB), Government of India
Written reply by MoS Shri Ramnath Thakur: “Promoting the Alternative Income Sources for Farmers” (02 December 2025).