Despite Increased Agricultural Production, Farmers' Income Declined

29-Dec-2025 08:31 PM

New Delhi. Although government data shows that domestic production of food grains and horticultural crops reached new record levels during 2025, the overall income of farmers declined due to wholesale market prices remaining below the Minimum Support Price (MSP). This situation was particularly applicable to pulses, oilseeds, coarse grains, and cotton.

According to official sources, satisfactory growth in food grain production was achieved due to abundant rainfall from the southwest monsoon and the implementation of certain government measures, including ensuring adequate availability of fertilizers at subsidized prices.

These government measures included schemes such as assured procurement at MSP, crop insurance, and direct cash transfers. This encouraged farmers to increase the production of crops, especially wheat and rice.

However, on the other hand, the continued large-scale import of pulses, edible oils, and cotton at cheaper prices from abroad led to a decline in prices, preventing farmers from receiving the expected income.

The prices of onions, tomatoes, and potatoes were lower in 2025 compared to 2024. The prices of pulses such as tur, urad, and moong, and oilseeds such as soybean and groundnut, were recorded below the MSP. Cotton and maize prices also declined.

Overall, there was a good improvement in agricultural production, but farmers could not reap the full benefits.

In fact, the government itself took several necessary precautionary measures to control the rise in prices of agricultural products in the domestic market.