The Impact of Government Policies on Indian Farmers

With around 70% of the Indian population relying on agriculture directly or indirectly, it is evident that India is an agrarian nation. Thus, agricultural policies play a huge role in impacting the plight of farmers. Generally, the government implements such policies to achieve a specific goal in the domestic markets. For example, the Indian government focuses on farm mechanization by offering subsidies on tractors in India. This is why a large section of farmers can now afford tractors in India. One canlearn more about tractors by checking the list of top tractors in India. Policy programs aim to establish financial programs like subsidies and motivate farmers to become a part of quality assurance programs. Farmers can learn more about tractors by voluntarily enrolling in these programs or exploring the list of top tractors in India. Government policies impact Indian farmers in the following ways:

Technology Costs

There are multiple approaches through which the government regulates the introduction of innovative technologies such as GMO seeds in the market. In addition, it approves and monitors the usage of pharmaceutical products and pesticides on farms. The effectiveness and cost of such products are influenced by the manner and speed of their market entry. No doubt, it is the choice of farmers to adopt a particular technology. However, if the government delays the entry of new products and technologies into the market, the entire industry will suffer reduced productivity. This is why the government strives to allow farmers to buy tractor online in India. With digital technology spreading across rural regions, farmers can now buy tractor online in India with few clicks. A top tractor in 2023 will definitely come packed with modern technologies. Farmers can easily get information about tractors from online sources.

Land Prices

The central fiscal policy has a direct and indirect impact on the value of farmlands. Other factors that influence this value include economic decisions, conservation policy, and state and central tax policies by the government. For instance, an overheated market for farmlands can hurt the interests of farmers. Also, a tax policy can become a hurdle when transferring lands to the next generation of farmers. In addition, a government policy can cause land rents to inflate. There is no benefit to buying top tractor models if the farm rent eats most of the profit earned. Also, top tractor models come at high prices. Thus,  there is a need to carefully understand the cause and effect when it comes to farmers and farm policies.


The infrastructure supports agriculture across different steps like supply, sowing and post-harvest management. Thus, there is a need for investment in this sector to improve farm productivity and reduce post-harvest losses. Post-harvest losses are high in India due to a lack of basic infrastructure like supply chain, pack houses and storage houses. The government has launched Agriculture Infrastructure Fund to develop pre- and post-harvest management structures in the agricultural sector. The goal is to offer a financing facility for long and medium-term debt. Farmers need an efficient, reliable and safe transportation system to produce, distribute and sell their produce. Even a top tractor in India will fail to perform well if the roads are in poor condition. Farmers will avoid a top tractor in India if there is a lack of road connectivity.

Farm Input Costs

Market and regulatory forces have a huge impact on energy costs. These forces are also responsible for changes in fertilizers and pesticide costs. In addition, their use in the field is strictly controlled. Thus, a government policy has the power to limit the demand for a product by restricting its application. Even though the farm sector has been sheltered from taxes on property, equipment and input purchases, a government policy can redesign tax codes to reduce such benefits. These taxes can also impact selling tractors in India.

Commodity Prices

The government works to protect the interests of the people by fixing commodity prices. For instance, if the food grains have a bumper harvest, their prices will be low. Farmers may not even recover their production costs. Thus, the government protects farmers by setting the prices of grains higher than the market level. It also imposes taxes like sales tax and excise duty on the sales and production of commodities, respectively. Import duty is the tax on the import of raw materials. Importers, sellers and producers pay these taxes to the government. If these taxes are increased, the commodities will have higher market prices. The top tractors price list reveals how much their prices have changed over the years. If you want to buy tractors in 2023, you will have to pay more than in previous years.

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Key Government Schemes and Programs

The Indian government is prioritizing farmer welfare through its policies and programs. Several schemes have been implemented for the revitalization of the agricultural sector. Another goal is to improve the economic situation of farmers. Following are the key plans, programs, schemes and initiatives by the government to benefit Indian farmers:

  • Soil Health Card Scheme: This scheme was launched in 2015 to allow state governments to provide Soil Health Cards to Indian farmers. With the help of these cards, farmers can get information on the nutrient level of their soil. In addition, they recommend the proper nutrient dosage to improve soil fertility and health.
  • Pradhan Mantri Krishi Sinchai Yojana (PMKSY): This scheme aims to offer solutions related to the irrigation supply chain through farm-level applications, distribution networks and water sources. At the micro level, PMKSY harnesses rainwater to create protective irrigation.
  • National Agriculture Market (e-NAM): e-NAM offers an online marketing platform to boost infrastructure for e-marketing. With the help of this innovative market process, better prices are being discovered in the agriculture markets. It supports the notion of a ‘One Nation One Market’ by allowing competition and transparency for higher remuneration.
  • Gramin Bhandaran Yojna: This scheme aims to come with scientific storage capacity in rural regions. It fulfils the demands of farmers to store agricultural inputs, farm produce and processed farm produce. Using this scheme, farmers can improve the marketability of agricultural produce by promoting quality control, grading and standardization.

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In conclusion, government policies have a significant impact on the livelihoods of Indian farmers. While some policies have been beneficial, others have created challenges for farmers. The key to ensuring sustainable agriculture in India is to develop policies that support the needs of farmers while also promoting economic growth and environmental sustainability. By implementing policies that provide fair prices, access to credit, and resources to improve productivity, the government can help farmers to improve their incomes and contribute to India’s food security. Additionally, promoting policies that focus on sustainable agriculture practices can help to mitigate the environmental impact of farming and create a more resilient food system.

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