The pillars of India's agricultural policy β water for farms, guaranteed prices, and access to affordable credit.
Government schemes like PM Krishi Sinchayee Yojana (PMKSY) aim to expand irrigation coverage ('Har Khet Ko Pani') and improve water-use efficiency ('More Crop Per Drop') through micro-irrigation (drip/sprinkler), since a large share of Indian farmland still depends on erratic monsoon rainfall.
Minimum Support Price (MSP) is the government-guaranteed floor price for select crops, currently calculated using the A2+FL formula (actual paid-out costs plus imputed family labour cost) β the demand for a C2 formula (which also adds imputed rent/interest on owned land and capital) is a recurring farmer-movement demand. Land reform issues include incomplete implementation of land ceiling laws, tenancy reform, and land record digitisation.
Institutional agricultural credit flows through Kisan Credit Cards (KCC) (short-term crop loans at subsidised interest), NABARD (apex refinancing body for rural credit), and cooperative/regional rural banks β aimed at reducing farmers' dependence on informal, high-interest moneylenders. PM-KISAN supplements this with direct income support of βΉ6,000/year to eligible farmer families.
APPSC frequently tests the A2+FL vs C2 MSP formula distinction and the objectives of PMKSY and PM-KISAN β directly relevant given Andhra Pradesh's agriculture-heavy economy, already covered in this site's separate 'Agriculture in AP' page.
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