Agricultural inputs like high-yielding variety (HYV) seeds, chemical fertilizers, pesticides, farm machinery, and irrigation tools are often priced beyond the reach of small and marginal farmers, who form over 80% of India’s farming population.

Subsidies Reduce Financial Burden

Government input subsidies (for fertilizers, seeds, electricity, irrigation, machinery) significantly reduce out-of-pocket expenses. This helps farmers invest in better-quality inputs without going into debt.

Encourage Adoption of New Technologies

High input costs are a major barrier to technology adoption. Subsidies encourage farmers to:

• Use mechanized tools (e.g., tractors, transplanters, harvesters),

• Adopt eco-friendly methods (e.g., bio-fertilizers, organic inputs),

• Implement modern irrigation techniques (e.g., drip, sprinkler), which improve water use efficiency and crop productivity.

Support for Marginalized Farmer

Subsidy schemes often have special provisions for tribal, rainfed, women, and scheduled caste (SC/ST) farmers. Targeted subsidies help bridge the gap in access to inputs, promoting equity and inclusion.

Fertilizer Subsidy

• Covers Urea, DAP, MOP, NPK,

• Farmers pay less (e.g., Urea: ₹266/bag vs. actual ₹2,400+)

• Aim: Affordable nutrient supply for better crop growth

Seed Subsidy

• Up to 50% off on certified seeds (cereals, pulses, oilseeds, vegetables)

• Schemes: NFSM, NMOOP

• Aim: Promote high-yielding, quality seed use

Machinery Subsidy

• Subsidy: 40%–60% on equipment (tractors, tillers, harvesters)

• Scheme: SMAM

• Aim: Boost mechanization among small/marginal farmers

Training and Awareness

Many farmers, especially in remote tribal and rainfed areas, lack the knowledge to distinguish between genuine and spurious products.

• Awareness campaigns (e.g., through Kisan Melas, training programs),

• Simple guides on identifying certified inputs,

• Support in reporting fake product sales and seeking compensation.

Role of Extension Services

Agricultural extension workers, such as those from Krishi Vigyan Kendras (KVKs) and Rythu Bharosa Kendras (RBKs), play a vital role by:

• Conducting demonstrations on input use,

• Acting as liaison agents between farmers and regulatory authorities,

• Providing on-field advice for using inputs properly, minimizing misuse or overuse.

Conclusion

Subsidies are essential for ensuring that farmers, especially marginal and tribal communities, have access to affordable agricultural inputs. By lowering input costs, subsidies help improve farm productivity, increase incomes, and support rural livelihoods. Well-designed and effectively delivered subsidies contribute to food security, economic growth, and the overall sustainability of agriculture. To truly benefit farmers, subsidies must be timely, targeted, and transparent.