Graduate Level intermediate Agriculture PM-KISAN MSP Indian Economy Government Schemes
Complete study notes on Indian agricultural schemes — PM-KISAN, KCC, MSP, APMC, e-NAM, crop insurance, and irrigation programmes for Kerala PSC Graduate Level exams.
Published: 20 Apr 2026
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Agriculture contributes about 15-17% to India’s GDP but employs around 42% of the workforce. Kerala PSC frequently asks about agricultural schemes, MSP mechanism, marketing reforms, and irrigation programmes. This note covers all major schemes with launch year, features, and key facts.
Agriculture in India — Key Statistics
Indicator Detail Share in GDP ~15-17% (declining over decades; was over 50% at independence) Employment share ~42-46% of workforce Largest producer globally Milk, pulses, jute, spices; 2nd in rice, wheat, fruits, vegetables Green Revolution Started mid-1960s; M.S. Swaminathan (“Father of Green Revolution in India”); Norman Borlaug (global) White Revolution (Operation Flood) 1970; Dr. Verghese Kurien (“Milkman of India”); made India largest milk producer Kharif season June-October (monsoon crops: rice, maize, cotton, sugarcane, groundnut) Rabi season October-March (winter crops: wheat, barley, mustard, peas, gram) Zaid season March-June (summer crops: watermelon, cucumber, moong dal)
PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)
Feature Detail Launched 24 February 2019 (PM Narendra Modi) Objective Direct income support to farmer families Benefit Rs. 6,000 per year in 3 equal instalments of Rs. 2,000 each Eligibility All land-holding farmer families (initially small/marginal, extended to all in June 2019) Fund transfer Direct Benefit Transfer (DBT) to Aadhaar-linked bank account Exclusions Income tax payers, institutional land holders, constitutional post holders, professionals (doctors, engineers, lawyers) earning above threshold Ministry Ministry of Agriculture and Farmers Welfare Beneficiaries Over 11 crore farmers (as of 2024-25)
Kisan Credit Card (KCC)
Feature Detail Launched 1998 (by NABARD model) Objective Provide affordable credit to farmers for cultivation, post-harvest, and consumption needs Interest rate 7% per annum for loans up to Rs. 3 lakh; effective 4% with subvention (3% interest subvention for prompt repayment) Coverage Crop cultivation, maintenance of farm assets, allied activities (dairy, fisheries, animal husbandry) Extended to Fisheries and animal husbandry sectors (2020) Issuing banks Commercial banks, RRBs, Cooperative banks Insurance Personal accident insurance cover included Repayment Linked to crop cycle (short-term: 1 year; medium-term: up to 5 years)
Minimum Support Price (MSP)
Feature Detail What is MSP? Government-guaranteed minimum price at which it will purchase crops from farmers Objective Protect farmers from price crashes; ensure minimum income Recommended by Commission for Agricultural Costs and Prices (CACP) Approved by Cabinet Committee on Economic Affairs (CCEA) Number of crops covered 23 crops (14 Kharif + 6 Rabi + 2 commercial + 1 copra as Fair Remunerative Price) Based on Cost of production + 50% margin over comprehensive cost (A2+FL formula — announced 2018) Procurement agencies FCI (Food Corporation of India) for wheat and rice; NAFED for pulses and oilseeds
23 MSP Crops
Category Crops Kharif (14) Paddy, Jowar, Bajra, Maize, Ragi, Arhar/Tur, Moong, Urad, Groundnut, Sunflower, Soybean, Sesamum, Nigerseed, Cotton Rabi (6) Wheat, Barley, Gram (Chana), Masur (Lentil), Rapeseed/Mustard, Safflower Commercial (2) Sugarcane (FRP — Fair and Remunerative Price), Jute Other Copra (declared separately)
Cost Concepts for MSP
Cost Formula Includes A2 All paid-out costs (seeds, fertiliser, labour hired, fuel, irrigation) A2 + FL A2 + imputed value of family labour C2 A2 + FL + rental value of owned land + interest on owned capital
Current MSP policy: at least 1.5 times A2+FL (announced in Budget 2018-19)
Feature Detail APMC Agricultural Produce Market Committee — state-level mandis where farmers sell produce Problem Farmers forced to sell only in APMC mandis; middlemen (commission agents) take large cuts e-NAM (Electronic National Agriculture Market) Launched April 2016; online trading platform connecting APMC mandis across India; unified market; transparency in pricing e-NAM portal enam.gov.in; managed by Small Farmers Agribusiness Consortium (SFAC) Model APMC Act 2003 Centre suggested reforms but implementation by states (agriculture is State subject) Farm Acts 2020 Three farm laws passed (later repealed in November 2021); aimed to allow trading outside APMC, contract farming, and remove stock limits Repeal Farm Laws Repeal Act, 2021 (repealed all three acts after farmer protests)
Pradhan Mantri Fasal Bima Yojana (PMFBY) — Crop Insurance
Feature Detail Launched 13 January 2016 (replaced earlier NAIS and MNAIS) Objective Comprehensive crop insurance against natural calamities, pests, diseases Premium (farmer’s share) Kharif: 2% of sum insured; Rabi: 1.5%; Commercial/Horticulture: 5% Government share Centre and State share remaining premium equally (50:50) Technology used Satellite imagery, drones, remote sensing for crop loss assessment Implementing agencies Insurance companies (empanelled: AIC, private insurers) Coverage Pre-sowing to post-harvest (standing crop, prevented sowing, mid-season adversity, localized calamity, post-harvest losses) Made voluntary 2020 onwards (earlier mandatory for loanee farmers) Mobile app ”Crop Insurance” app for easy enrolment and claim tracking
Irrigation Schemes
Scheme Year Key Features Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) 2015 ”Har Khet Ko Paani” (water to every field); “Per Drop More Crop” (micro-irrigation); merged AIBP, IWMP, On Farm Water Management Accelerated Irrigation Benefits Programme (AIBP) 1996 Fast-track completion of pending irrigation projects Per Drop More Crop 2015 (under PMKSY) Promotes drip and sprinkler irrigation; subsidy to farmers for micro-irrigation Atal Bhujal Yojana 2019 Groundwater management in 7 states with over-exploited groundwater Jal Shakti Abhiyan 2019 Water conservation; rainwater harvesting; revival of water bodies Command Area Development Programme 1974 Bridge gap between irrigation potential created and utilized
India’s Irrigation Statistics
Fact Detail Net irrigated area About 49% of net sown area Major source Tube wells/Bore wells (over 45% of irrigated area) Second source Canals (about 24%) Largest irrigated state Uttar Pradesh (by area) Highest % irrigated Punjab (about 98% of net sown area irrigated)
Other Important Agricultural Schemes
Scheme Year Key Features Soil Health Card Scheme 2015 Soil testing and nutrient recommendations for every farmer; cycle of 2 years Paramparagat Krishi Vikas Yojana (PKVY) 2015 Promotion of organic farming; cluster-based approach; Rs. 50,000/hectare over 3 years National Food Security Mission (NFSM) 2007 Increase production of rice, wheat, pulses, coarse cereals Rashtriya Krishi Vikas Yojana (RKVY) 2007 Additional funding to states for agriculture development; now RKVY-RAFTAAR PM-AASHA (Annadata Aay Sanrakshan Abhiyan) 2018 Ensure MSP to farmers for oilseeds, pulses, copra through Price Support Scheme, Price Deficiency Payment, Private Procurement National Mission on Sustainable Agriculture (NMSA) 2014-15 Climate-resilient agriculture; soil health, water use efficiency Agriculture Infrastructure Fund (AIF) 2020 Rs. 1 lakh crore for post-harvest infrastructure (cold storage, warehouses, processing) Formation and Promotion of FPOs 2020 10,000 Farmer Producer Organisations to be formed; Rs. 6,865 crore scheme Neem-Coated Urea 2015 100% urea to be neem-coated; reduces misuse; slow-release of nitrogen National Horticulture Mission 2005-06 Promote horticulture (fruits, vegetables, flowers, spices)
Key Agricultural Institutions
Institution Role HQ FCI (Food Corporation of India) Procurement, storage, distribution of foodgrains for PDS New Delhi (est. 1965) NABARD Apex development bank for rural/agriculture credit Mumbai (est. 1982) ICAR (Indian Council of Agricultural Research) Research coordination, agricultural education New Delhi (est. 1929) CACP Recommends MSP for crops New Delhi SFAC (Small Farmers Agribusiness Consortium) Promotes agribusiness; manages e-NAM New Delhi National Seeds Corporation Production and distribution of certified seeds New Delhi (est. 1963) Central Warehousing Corporation Storage/warehousing for agricultural produce New Delhi (est. 1957)
Kerala-Specific Agriculture Facts
Fact Detail Major crops Coconut, rubber, pepper, cardamom, tea, coffee, rice, cashew, arecanut Largest rubber producing state Kerala (about 75% of India’s natural rubber) Largest coconut producing state Kerala (with Karnataka and Tamil Nadu close) Spice Board of India HQ in Kochi; promotes export of Indian spices Coconut Development Board HQ in Kochi; promotion of coconut industry Rubber Board HQ in Kottayam; controls rubber cultivation and trade Rice production Palakkad (“Granary of Kerala”) and Kuttanad (below sea level farming) Kuttanad farming Only place in India where farming is done below sea level
Quick Revision — PSC Frequently Asked
Question Answer PM-KISAN annual benefit? Rs. 6,000 (3 instalments of Rs. 2,000) PM-KISAN launched? 24 February 2019 KCC interest rate? 7% (effective 4% with subvention) Number of MSP crops? 23 MSP recommended by? CACP (Commission for Agricultural Costs and Prices) PMFBY Kharif premium? 2% of sum insured e-NAM launched? April 2016 PMKSY slogan? ”Har Khet Ko Paani” and “Per Drop More Crop” Father of Green Revolution (India)? M.S. Swaminathan White Revolution associated with? Dr. Verghese Kurien / Operation Flood (1970) FCI established? 1965 NABARD established? 1982 Rubber Board HQ? Kottayam (Kerala) Spice Board HQ? Kochi (Kerala) Kharif season months? June to October Farm Laws repealed in? November 2021
Agriculture contributes about 15-17% to India’s GDP but employs around 42% of the workforce. Kerala PSC frequently asks about agricultural schemes, MSP mechanism, marketing reforms, and irrigation programmes. This note covers all major schemes with launch year, features, and key facts.
Agriculture in India — Key Statistics
Indicator Detail Share in GDP ~15-17% (declining over decades; was over 50% at independence) Employment share ~42-46% of workforce Largest producer globally Milk, pulses, jute, spices; 2nd in rice, wheat, fruits, vegetables Green Revolution Started mid-1960s; M.S. Swaminathan (“Father of Green Revolution in India”); Norman Borlaug (global) White Revolution (Operation Flood) 1970; Dr. Verghese Kurien (“Milkman of India”); made India largest milk producer Kharif season June-October (monsoon crops: rice, maize, cotton, sugarcane, groundnut) Rabi season October-March (winter crops: wheat, barley, mustard, peas, gram) Zaid season March-June (summer crops: watermelon, cucumber, moong dal)
PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)
Feature Detail Launched 24 February 2019 (PM Narendra Modi) Objective Direct income support to farmer families Benefit Rs. 6,000 per year in 3 equal instalments of Rs. 2,000 each Eligibility All land-holding farmer families (initially small/marginal, extended to all in June 2019) Fund transfer Direct Benefit Transfer (DBT) to Aadhaar-linked bank account Exclusions Income tax payers, institutional land holders, constitutional post holders, professionals (doctors, engineers, lawyers) earning above threshold Ministry Ministry of Agriculture and Farmers Welfare Beneficiaries Over 11 crore farmers (as of 2024-25)
Kisan Credit Card (KCC)
Feature Detail Launched 1998 (by NABARD model) Objective Provide affordable credit to farmers for cultivation, post-harvest, and consumption needs Interest rate 7% per annum for loans up to Rs. 3 lakh; effective 4% with subvention (3% interest subvention for prompt repayment) Coverage Crop cultivation, maintenance of farm assets, allied activities (dairy, fisheries, animal husbandry) Extended to Fisheries and animal husbandry sectors (2020) Issuing banks Commercial banks, RRBs, Cooperative banks Insurance Personal accident insurance cover included Repayment Linked to crop cycle (short-term: 1 year; medium-term: up to 5 years)
Minimum Support Price (MSP)
Feature Detail What is MSP? Government-guaranteed minimum price at which it will purchase crops from farmers Objective Protect farmers from price crashes; ensure minimum income Recommended by Commission for Agricultural Costs and Prices (CACP) Approved by Cabinet Committee on Economic Affairs (CCEA) Number of crops covered 23 crops (14 Kharif + 6 Rabi + 2 commercial + 1 copra as Fair Remunerative Price) Based on Cost of production + 50% margin over comprehensive cost (A2+FL formula — announced 2018) Procurement agencies FCI (Food Corporation of India) for wheat and rice; NAFED for pulses and oilseeds
23 MSP Crops
Category Crops Kharif (14) Paddy, Jowar, Bajra, Maize, Ragi, Arhar/Tur, Moong, Urad, Groundnut, Sunflower, Soybean, Sesamum, Nigerseed, Cotton Rabi (6) Wheat, Barley, Gram (Chana), Masur (Lentil), Rapeseed/Mustard, Safflower Commercial (2) Sugarcane (FRP — Fair and Remunerative Price), Jute Other Copra (declared separately)
Cost Concepts for MSP
Cost Formula Includes A2 All paid-out costs (seeds, fertiliser, labour hired, fuel, irrigation) A2 + FL A2 + imputed value of family labour C2 A2 + FL + rental value of owned land + interest on owned capital
Current MSP policy: at least 1.5 times A2+FL (announced in Budget 2018-19)
Feature Detail APMC Agricultural Produce Market Committee — state-level mandis where farmers sell produce Problem Farmers forced to sell only in APMC mandis; middlemen (commission agents) take large cuts e-NAM (Electronic National Agriculture Market) Launched April 2016; online trading platform connecting APMC mandis across India; unified market; transparency in pricing e-NAM portal enam.gov.in; managed by Small Farmers Agribusiness Consortium (SFAC) Model APMC Act 2003 Centre suggested reforms but implementation by states (agriculture is State subject) Farm Acts 2020 Three farm laws passed (later repealed in November 2021); aimed to allow trading outside APMC, contract farming, and remove stock limits Repeal Farm Laws Repeal Act, 2021 (repealed all three acts after farmer protests)
Pradhan Mantri Fasal Bima Yojana (PMFBY) — Crop Insurance
Feature Detail Launched 13 January 2016 (replaced earlier NAIS and MNAIS) Objective Comprehensive crop insurance against natural calamities, pests, diseases Premium (farmer’s share) Kharif: 2% of sum insured; Rabi: 1.5%; Commercial/Horticulture: 5% Government share Centre and State share remaining premium equally (50:50) Technology used Satellite imagery, drones, remote sensing for crop loss assessment Implementing agencies Insurance companies (empanelled: AIC, private insurers) Coverage Pre-sowing to post-harvest (standing crop, prevented sowing, mid-season adversity, localized calamity, post-harvest losses) Made voluntary 2020 onwards (earlier mandatory for loanee farmers) Mobile app ”Crop Insurance” app for easy enrolment and claim tracking
Irrigation Schemes
Scheme Year Key Features Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) 2015 ”Har Khet Ko Paani” (water to every field); “Per Drop More Crop” (micro-irrigation); merged AIBP, IWMP, On Farm Water Management Accelerated Irrigation Benefits Programme (AIBP) 1996 Fast-track completion of pending irrigation projects Per Drop More Crop 2015 (under PMKSY) Promotes drip and sprinkler irrigation; subsidy to farmers for micro-irrigation Atal Bhujal Yojana 2019 Groundwater management in 7 states with over-exploited groundwater Jal Shakti Abhiyan 2019 Water conservation; rainwater harvesting; revival of water bodies Command Area Development Programme 1974 Bridge gap between irrigation potential created and utilized
India’s Irrigation Statistics
Fact Detail Net irrigated area About 49% of net sown area Major source Tube wells/Bore wells (over 45% of irrigated area) Second source Canals (about 24%) Largest irrigated state Uttar Pradesh (by area) Highest % irrigated Punjab (about 98% of net sown area irrigated)
Other Important Agricultural Schemes
Scheme Year Key Features Soil Health Card Scheme 2015 Soil testing and nutrient recommendations for every farmer; cycle of 2 years Paramparagat Krishi Vikas Yojana (PKVY) 2015 Promotion of organic farming; cluster-based approach; Rs. 50,000/hectare over 3 years National Food Security Mission (NFSM) 2007 Increase production of rice, wheat, pulses, coarse cereals Rashtriya Krishi Vikas Yojana (RKVY) 2007 Additional funding to states for agriculture development; now RKVY-RAFTAAR PM-AASHA (Annadata Aay Sanrakshan Abhiyan) 2018 Ensure MSP to farmers for oilseeds, pulses, copra through Price Support Scheme, Price Deficiency Payment, Private Procurement National Mission on Sustainable Agriculture (NMSA) 2014-15 Climate-resilient agriculture; soil health, water use efficiency Agriculture Infrastructure Fund (AIF) 2020 Rs. 1 lakh crore for post-harvest infrastructure (cold storage, warehouses, processing) Formation and Promotion of FPOs 2020 10,000 Farmer Producer Organisations to be formed; Rs. 6,865 crore scheme Neem-Coated Urea 2015 100% urea to be neem-coated; reduces misuse; slow-release of nitrogen National Horticulture Mission 2005-06 Promote horticulture (fruits, vegetables, flowers, spices)
Key Agricultural Institutions
Institution Role HQ FCI (Food Corporation of India) Procurement, storage, distribution of foodgrains for PDS New Delhi (est. 1965) NABARD Apex development bank for rural/agriculture credit Mumbai (est. 1982) ICAR (Indian Council of Agricultural Research) Research coordination, agricultural education New Delhi (est. 1929) CACP Recommends MSP for crops New Delhi SFAC (Small Farmers Agribusiness Consortium) Promotes agribusiness; manages e-NAM New Delhi National Seeds Corporation Production and distribution of certified seeds New Delhi (est. 1963) Central Warehousing Corporation Storage/warehousing for agricultural produce New Delhi (est. 1957)
Kerala-Specific Agriculture Facts
Fact Detail Major crops Coconut, rubber, pepper, cardamom, tea, coffee, rice, cashew, arecanut Largest rubber producing state Kerala (about 75% of India’s natural rubber) Largest coconut producing state Kerala (with Karnataka and Tamil Nadu close) Spice Board of India HQ in Kochi; promotes export of Indian spices Coconut Development Board HQ in Kochi; promotion of coconut industry Rubber Board HQ in Kottayam; controls rubber cultivation and trade Rice production Palakkad (“Granary of Kerala”) and Kuttanad (below sea level farming) Kuttanad farming Only place in India where farming is done below sea level
Quick Revision — PSC Frequently Asked
Question Answer PM-KISAN annual benefit? Rs. 6,000 (3 instalments of Rs. 2,000) PM-KISAN launched? 24 February 2019 KCC interest rate? 7% (effective 4% with subvention) Number of MSP crops? 23 MSP recommended by? CACP (Commission for Agricultural Costs and Prices) PMFBY Kharif premium? 2% of sum insured e-NAM launched? April 2016 PMKSY slogan? ”Har Khet Ko Paani” and “Per Drop More Crop” Father of Green Revolution (India)? M.S. Swaminathan White Revolution associated with? Dr. Verghese Kurien / Operation Flood (1970) FCI established? 1965 NABARD established? 1982 Rubber Board HQ? Kottayam (Kerala) Spice Board HQ? Kochi (Kerala) Kharif season months? June to October Farm Laws repealed in? November 2021
