India supported farmers with policy support, market safeguards: Report

New Delhi, Oct 11 (IANS) Amidst global trade shocks, India supported its farmers with policy support and market safeguards, according to a media report.

During the last fiscal year, India worked to stabilise “rural incomes, sustain planting decisions, and safeguard long-term agricultural resilience”, stated a recent report in Vietnam Times.

With the crop insurance schemes, the country shielded its farmers from weather, pests, and price shocks.

The government's “Pradhan Mantri Fasal Bima Yojana (PMFBY) and related weather-indexed schemes” extended through 2025–26 also maintained significant budgetary outlays to ensure rapid claim settlement and broader coverage, the report said.

While these schemes cut down “the downside risk that can force distress sales and underinvestment,” they also strengthened the farmers to adopt improved seeds and climate-smart practices.

Accompanied by policies were the practical improvements, such as speeding up payouts and the use of digital transfers to reach beneficiaries quickly, which worked for the benefit of farmers, the report said.

“State and central coordination on procurement and payment, even now, targets efficiencies that limit leakage and ensure farmers receive the full value of insurance and support disbursals,” the report said.

“Fast, reliable payouts foster trust in formal programmes, reduce reliance on costly informal credit, and help stabilise consumption in rural economies,” it added.

In addition, guaranteed pricing and procurement programmes enhanced the farm incomes.

Even as global commodity markets fluctuated, the Minimum Support Prices (MSP), set annually, and procurement systems stabilitised the agricultural sector.

Further, region-specific shocks were scaled up by the government to target state-level relief measures.

Measures such as “irrigation subsidies, waived interest on water charges, and expanded procurement centres for key crops” directly reduced farmers’ input costs and improved net returns, the report said.

The localised interventions, along with national insurance and price supports, removed immediate financial stressors and enabled farmers to maintain productive investments.

“Looking ahead, India’s positive momentum rests on three mutually reinforcing pillars: guaranteeing downside protection (insurance and timely payouts), ensuring fair prices (MSP and procurement), and raising productivity and resilience (climate-smart tech and infrastructure),” the report said.

These pillars will not only secure incomes today but also build capacity for higher returns tomorrow, it noted.

--IANS

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