60-second revision
- MSP is recommended by the CACP (set up 1965) and approved by the Cabinet Committee on Economic Affairs; it is not a statutory right.
- 22 mandated crops get MSP (14 kharif, 6 rabi, 2 commercial: jute and copra); sugarcane gets a Fair and Remunerative Price.
- Since 2018-19, MSP is fixed at least 1.5 times the A2+FL cost of production.
- NFSA 2013 covers up to 75% of rural and 50% of urban population; priority households 5 kg per person, AAY 35 kg per household per month.
- Free foodgrains under NFSA since 1 January 2023 (PMGKAY), extended for five years from 1 January 2024.
- FCI set up under the Food Corporations Act, 1964; began work in 1965.
- Marginal holding < 1 ha, small 1-2 ha; together about 86% of holdings (Agriculture Census 2015-16).
- Operation Flood (1970, NDDB, Verghese Kurien) = White Revolution; Green Revolution in the mid-1960s centred on HYV wheat.
Agriculture in the Indian economy
Agriculture's share of national output has fallen steadily as industry and services grew, but it still employs the largest share of India's workforce. This gap between share of output and share of jobs means many farm workers have low productivity, which is why disguised unemployment, small holdings and farm incomes dominate policy debates.
Cropping seasons
| Season | Sowing and harvest | Typical crops |
|---|---|---|
| Kharif | Sown with the south-west monsoon (June-July), harvested September-October | Rice, maize, jowar, bajra, cotton, groundnut, soybean, arhar |
| Rabi | Sown October-December, harvested March-April | Wheat, barley, gram, mustard, peas |
| Zaid | Short summer season between rabi and kharif | Watermelon, muskmelon, cucumber, moong, fodder crops |
Landholdings
| Category | Size |
|---|---|
| Marginal | Less than 1 hectare |
| Small | 1 to 2 hectares |
| Semi-medium | 2 to 4 hectares |
| Medium | 4 to 10 hectares |
| Large | 10 hectares and above |
Small and marginal holdings make up about 86% of all holdings (Agriculture Census 2015-16) but cover a much smaller share of the area. Fragmented plots limit mechanisation, credit and bargaining power.
Prices, procurement and the PDS
- Commission for Agricultural Costs and Prices (CACP): set up in 1965 as the Agricultural Prices Commission, renamed in 1985. It recommends MSPs; the CCEA approves them.
- MSP covers 22 mandated crops: 14 kharif, 6 rabi and 2 commercial (jute and copra). Sugarcane has a Fair and Remunerative Price.
- Since the 2018-19 Budget, MSP is fixed at a minimum of 1.5 times the A2+FL cost (paid-out costs plus the imputed value of family labour).
- MSP is an administrative decision, not a legal entitlement; effective procurement is concentrated in a few crops (mainly rice and wheat) and states.
- Food Corporation of India (Food Corporations Act, 1964; began 1965): procures grain, maintains buffer stocks and moves grain for the Public Distribution System.
- Targeted PDS was introduced in 1997; One Nation One Ration Card lets beneficiaries draw rations anywhere in India.
National Food Security Act, 2013
- Legal entitlement to subsidised foodgrains for up to 75% of rural and 50% of urban population (about two-thirds overall).
- Priority households: 5 kg of foodgrains per person per month. Antyodaya Anna Yojana (poorest) households: 35 kg per household per month.
- Maternity benefit of at least Rs 6,000 for pregnant women and lactating mothers, plus nutrition support for children through anganwadis and school meals.
- The eldest woman aged 18 or above is treated as head of the household for issuing the ration card.
- Since 1 January 2023 grain under NFSA is free (PM Garib Kalyan Anna Yojana), and this was extended for five years from 1 January 2024.
Food security, as defined by the FAO, rests on four pillars: availability (enough food produced or imported), access (people can afford or obtain it), utilisation (nutritious food, clean water, good absorption) and stability (no sudden loss of the other three).
Revolutions in agriculture
| Revolution | Related to |
|---|---|
| Green | Foodgrains, especially high-yielding wheat (mid-1960s; M. S. Swaminathan, Norman Borlaug) |
| White | Milk (Operation Flood from 1970; NDDB; Verghese Kurien) |
| Blue | Fisheries and aquaculture |
| Yellow | Oilseeds (Technology Mission on Oilseeds, 1986) |
| Golden | Horticulture (fruits and vegetables) |
| Silver | Eggs and poultry |
| Round | Potato |
The Green Revolution combined high-yielding seeds, chemical fertilisers, irrigation and assured procurement. It was concentrated in Punjab, Haryana and western Uttar Pradesh and in wheat and rice, and later raised concerns about groundwater depletion and soil health.
Major farm schemes
| Scheme | Year | Key feature |
|---|---|---|
| Kisan Credit Card | 1998 | Flexible short-term crop credit through banks |
| Soil Health Card | 2015 | Soil testing with crop-wise fertiliser advice |
| PM Krishi Sinchayee Yojana | 2015 | 'Har Khet Ko Pani' and 'Per Drop More Crop' (micro-irrigation) |
| PM Fasal Bima Yojana | 2016 | Crop insurance; farmer premium capped at 2% kharif, 1.5% rabi, 5% commercial/horticulture |
| e-NAM | 2016 | Online trading platform linking regulated mandis (APMCs) |
| PM-KISAN | 2019 | Rs 6,000 a year income support to landholding farmers, in three instalments |
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