Economic Survey 2025-26 Chapter 6 Summary for UPSC
Chapter 6 of the Economic Survey 2025-26, titled Agriculture and Food Management: Raising Productivity, Securing Incomes and Ensuring Food Security, examines India’s agricultural performance, farmer income support, productivity challenges and food security system.
The chapter argues that agriculture remains central to inclusive growth because it supports nearly half of India’s workforce while contributing nearly one-fifth of national income. The sector has shown resilience, especially because of livestock, fisheries and horticulture, but productivity constraints continue due to fragmented landholdings, limited irrigation, low mechanisation, weak infrastructure, inadequate extension and imbalanced fertiliser use.
Chapter Snapshot: Most Important Facts
The main UPSC theme is: Indian agriculture is moving from production security to income, productivity, diversification and value-chain security. Food security remains essential, but the future agenda is productivity, sustainability, markets and nutrition.
Overview of Agriculture and Allied Sector Performance
Over the last five years, agriculture and allied activities recorded average annual growth of around 4.4% at constant prices. In Q2 of FY26, the sector grew by 3.5%. The decadal growth rate of 4.45% during FY16-FY25 was higher than previous decades, led by livestock and fisheries.
Allied Sectors as Growth Engines
The chapter stresses that allied sectors are increasingly important for farm income. Between FY15 and FY24, livestock GVA increased by nearly 195%, registering a CAGR of 12.77% at current prices. Fish production increased by more than 140% during 2014-2025.
Foodgrains and Horticulture
Foodgrain production is estimated at 3,577.3 LMT in AY 2024-25, up by 254.3 LMT over the previous year. The increase was led by rice, wheat, maize and coarse cereals. Horticulture production reached 362.08 MT in 2024-25, surpassing the estimated foodgrain production of 329.68 MT.
| Indicator | Value | UPSC Significance |
|---|---|---|
| Foodgrain production, AY 2024-25 | 3,577.3 LMT | Shows food security strength. |
| Increase over previous year | 254.3 LMT | Favourable monsoon and policy support. |
| Horticulture production, 2024-25 | 362.08 MT | High-value agriculture diversification. |
| Horticulture production, 2024-25 second advance estimate | 367.72 MT | Broad-based expansion. |
| Fruits | 114.51 MT | Nutritional and export relevance. |
| Vegetables | 219.67 MT | Largest horticulture component. |
| Other horticulture crops | 33.54 MT | Supports diversification. |
India is the world’s largest producer of dry onions, contributing nearly 25% of global output, and ranks second in vegetables, fruits and potatoes.
Productivity Trends: Global and Domestic Perspective
India’s agriculture growth has improved, but crop yields in cereals, maize, soybeans and pulses remain below global averages. Groundnut is an exception due to suitable agro-climatic conditions, improved varieties, two crop cycles in some areas and policy support in Gujarat, Karnataka and Tamil Nadu.
Rice, Wheat and Pulses
Many major rice-producing States such as West Bengal, Uttar Pradesh, Telangana, Odisha, Andhra Pradesh and Tamil Nadu had yields below the national average. CACP identifies unseasonal rains, heat stress and dry spells during critical crop stages as important reasons.
Pulses continue to face persistent technological, structural and climatic constraints. NITI analysis shows that in 15 of 27 El Niño years between 1951 and 2024, pulse acreage declined by 2-9%, production fell by 6-30%, and yields dropped by 5-25% year-on-year.
Pulses are highly affected by El Niño, rainfall variability and moisture stress.
Madhya Pradesh and Gujarat perform better in pulses due to suitable soils and natural resource endowments.
Gujarat’s high seed replacement rate shows the role of certified high-performance varieties.
Telangana’s irrigated area expansion shows how irrigation can raise cultivated area and stability.
State-Level Agricultural Governance Innovations
| State | Initiative | Outcome / Importance |
|---|---|---|
| Andhra Pradesh | Resurvey Project using drones, CORS and GIS | 6,901 villages covered, 81 lakh parcels resurveyed and around 86,000 boundary disputes resolved. |
| Bihar | Mukhyamantri Samekit Chaur Vikas Yojana | Over 1,933 hectares brought under fish-based production across 22 districts. |
| Madhya Pradesh | Souda Patrak initiative | Enabled direct MSP-based digital purchases and over 1.03 lakh transactions by December 2025. |
| Assam | State Irrigation Plan | Gross irrigated area reached 24.28% of agricultural land by 2024-25. |
| Karnataka | FRUITS platform | Unified farmer database covering over 55 lakh farmers and multiple schemes. |
| Jharkhand | Climate Smart Agriculture and Agri Stack Scheme | Supports farm-level tracking and climate-informed planning. |
Drivers of Productivity Improvement: Policy and Institutional Interventions
The chapter notes that agriculture growth can come from either area expansion or productivity improvement. Since land and water are increasingly constrained, yield improvement has become the central path for increasing output and farm incomes.
Mission-Mode Agriculture Schemes
| Scheme / Mission | Purpose | UPSC Relevance |
|---|---|---|
| National Food Security and Nutrition Mission | Enhances productivity and production of rice, wheat, pulses, coarse cereals, commercial crops and Shree Anna. | Food security and nutrition security. |
| National Mission on Edible Oils - Oilseeds | Targets self-sufficiency in oilseed production through productivity and improved varieties. | Reduces edible oil import dependence. |
| National Mission on Edible Oils - Oil Palm | Promotes oil palm cultivation and domestic edible oil supply. | Atmanirbhar Bharat in edible oils. |
| Mission for Atmanirbharta in Pulses | Approved on 1 October 2025 to achieve self-sufficiency in pulses. | Important for nutrition and import reduction. |
| Mission for Integrated Development of Horticulture | Expands horticulture cultivation, planting material and micro-irrigation. | High-value agriculture and income diversification. |
| PM Dhan Dhaanya Krishi Yojana | Targets 100 aspirational agricultural districts over six years from FY26. | Low productivity, low cropping intensity and credit gaps. |
Edible Oils and Oil Palm
Between 2014-15 and 2024-25, area under oilseeds increased by over 18%, production by nearly 55%, and productivity by about 31%. Domestic edible oil availability increased from 86.30 lakh tonnes in 2015-16 to 121.75 lakh tonnes in 2023-24, reducing import share from 63.2% to 56.25%.
Ethanol Pricing and Cropping Incentives
The chapter warns that ethanol pricing has created strong incentives for maize. Ethanol blending saved more than ₹1.44 lakh crore in foreign exchange and substituted about 245 lakh metric tonnes of crude oil by August 2025, but maize-based ethanol pricing is changing crop choices.
The Survey highlights an emerging tension between Aatmanirbharta in energy and Aatmanirbharta in food. If maize becomes too attractive due to ethanol pricing, pulses and oilseeds may lose acreage, increasing import dependence and food price vulnerability.
Improving Productivity: Critical Inputs and Technology
Quality Seeds
The Sub-Mission on Seeds and Planting Materials, launched in 2014-15, aims to improve access to high-quality seeds through production, processing, storage and certification. Under this initiative, 6.85 lakh Seed Villages were created, 1649.26 lakh quintals of quality seeds were produced and 2.85 crore farmers benefited.
PM Dhan Dhaanya Krishi Yojana
PM Dhan Dhaanya Krishi Yojana was announced for 100 aspirational agricultural districts and approved in July 2025 for six years from FY26. It aims to improve productivity, crop diversification, sustainable practices, post-harvest storage, irrigation and credit availability.
Districts are identified based on low productivity, low cropping intensity and limited credit disbursement.
36 existing schemes across 11 departments will be converged with state schemes and private partnerships.
Central and State Agricultural Universities will act as technical knowledge partners.
100 districts should surpass national and state averages in key agriculture performance indicators.
Irrigation and Water-Use Efficiency
Assured irrigation improves productivity, nutrient uptake, crop diversification and multiple cropping. PMKSY aims to coordinate farm-level irrigation investment, expand assured irrigation, improve on-farm water-use efficiency, promote precision irrigation and support water conservation.
| Water / Irrigation Indicator | Value | Meaning |
|---|---|---|
| Gross irrigated area as share of gross cropped area | 41.7% in 2001-02 to 55.8% in 2022-23 | Major improvement in irrigation coverage. |
| PDMC support for small and marginal farmers | 55% | Financial assistance for drip and sprinkler systems. |
| PDMC support for other farmers | 45% | Promotes micro-irrigation adoption. |
| Irrigation coverage in millets | Less than 15% | Shows crop-wise disparity. |
| Irrigation coverage in pulses | Around 26% | Productivity constraint for pulses. |
| Irrigation coverage in rice | About 67% | Rice has much higher water security. |
Soil Health and Fertiliser Reform
Declining soil organic carbon and imbalanced fertiliser use are major threats to productivity. The Soil Health Management and Soil Health Card schemes promote integrated nutrient management. Over 25.55 crore Soil Health Cards had been issued as of 14 November 2025.
Excess nitrogen use through urea weakens soil structure, accelerates micronutrient depletion, increases nitrate leaching and reduces crop response. The Survey suggests moving from volume-driven input use to efficiency-driven crop growth.
Credit, Mechanisation and Allied Sector Support
Agricultural Credit
Institutional credit helps farmers invest in quality inputs, mechanisation, irrigation and climate-resilient practices. In FY25, Ground Level Credit disbursement reached ₹28.69 lakh crore, surpassing the ₹27.5 lakh crore target. This included ₹15.93 lakh crore short-term loans and ₹12.77 lakh crore term loans.
Kisan Rin Portal
The Kisan Rin Portal, launched in 2023, integrates 30 Scheduled Commercial Banks, 42 Regional Rural Banks, 20 State Cooperative Banks and 356 District Central Cooperative Banks. It improves credit discipline by identifying multiple loan accounts under a single farmer and preventing duplicate subsidy claims.
Mechanisation and Collective Access
The Sub-Mission on Agricultural Mechanisation supports training, demonstrations, Custom Hiring Centres and farm equipment purchase. Between 2014-15 and 2025-26, 25,689 Custom Hiring Centres were established, including 558 in FY26 up to 30 October 2025.
Livestock and Fisheries Support
Livestock growth has been supported by genetic improvement, disease control and animal health infrastructure. Around 125 crore FMD vaccinations have been administered since 2020. Artificial insemination increased from 76.23 million in 2017-18 to 88.32 million in 2024-25.
| Allied Sector Area | Important Fact | Challenge / Importance |
|---|---|---|
| FMD Control | 125 crore vaccinations since 2020 | Improves livestock productivity and disease resilience. |
| Artificial Insemination | 88.32 million annual inseminations in 2024-25 | Improves herd quality and milk productivity. |
| Fodder Crops | 9.13 million hectares, 4.61% of gross cropped area | Feed-fodder shortage raises dairy cost. |
| Feed and Fodder Cost | Over 70% of milk production cost | Critical constraint for dairy growth. |
| Green Fodder Gap | 11-32% | Needs targeted fodder interventions. |
| Dry Fodder Gap | 23% | Major livestock nutrition gap. |
| Concentrate Gap | 28-40% | Raises cost and limits productivity. |
Agriculture Infrastructure, Marketing and Extension Support
Agriculture Marketing Infrastructure and AIF
The Agriculture Marketing Infrastructure sub-scheme under ISAM supports storage and marketing infrastructure through capital investment, credit linkage and back-ended subsidy. As of 31 December 2025, 49,796 storage projects were sanctioned with ₹4,832.70 crore released.
e-NAM, FPOs and Digital Agriculture Mission
e-NAM was launched in April 2016 as a pan-India virtual market platform to improve price discovery and competitive buyer access. By 31 December 2025, it had registered around 1.79 crore farmers, 2.72 lakh traders, and 4,698 FPOs across 1,522 mandis in 23 States and 4 UTs.
| Platform / Institution | Key Fact | UPSC Meaning |
|---|---|---|
| e-NAM | 1,522 mandis across 23 States and 4 UTs | Integrated national agriculture market. |
| e-NAM Farmers | 1.79 crore registered farmers | Digital market access. |
| e-NAM Traders | 2.72 lakh registered traders | Competition and price discovery. |
| FPO Scheme | 10,000 FPOs registered by 31 December 2025 | Aggregation and bargaining power. |
| Digital Agriculture Mission | Approved in September 2024 | DPI for agriculture through AgriStack, Krishi Decision Support System and soil maps. |
Fisheries Infrastructure and Formalisation
India exports seafood to more than 130 countries. PMMSY, FIDF and PM-MKSSY have supported fishing harbours, landing centres, cold chain systems, processing facilities, deep-sea fishing and advanced aquaculture. PM-MKSSY has advanced formalisation through the National Fisheries Digital Platform.
Extension Services
Agricultural extension transfers scientific knowledge and modern practices to farmers. Under ATMA, 39.04 lakh farmers benefited in 2024-25 and 20.08 lakh farmers were supported in 2025-26 till October. Kisan Call Centres answered 30.65 lakh calls in 2024-25 and 18.91 lakh calls till October 2025.
Extension is the bridge between research and farm-level productivity. Without effective extension, improved seeds, irrigation, fertiliser reform, mechanisation and digital agriculture cannot fully translate into farmer income.
Price Support, Income Support and Crop Insurance
MSP and Income Support
Price and income support policies protect farmers from weather shocks, market volatility and rising input costs. The Government announces MSP for 22 mandated crops: 14 kharif crops, 6 rabi crops and 2 commercial crops. Since 2018-19, MSP has been fixed at least 1.5 times the all-India weighted average cost of production.
Procurement Efficiency and Crop Diversification
The chapter argues that public foodgrain procurement has protected food security for decades, but high procurement of rice and wheat has led to high buffer stocks and carrying costs. Savings from better stock management can be used to incentivise voluntary crop diversification into pulses, oilseeds and maize in suitable regions.
The Survey suggests a calibrated diversification strategy without weakening MSP or procurement. Public intervention can gradually shift from physical procurement to price-deficiency payments, bonuses and assured offtake mechanisms for a wider crop basket.
Crop Insurance Support
PMFBY protects farmers against crop losses from natural calamities, pests, diseases and adverse weather across the crop cycle. In 2024-25, it insured 4.19 crore farmers, 32% higher than 2022-23, and covered 6.2 crore hectares, 20% higher than the previous year.
| Crop Insurance Indicator | Value | Significance |
|---|---|---|
| Farmers insured in 2024-25 | 4.19 crore | Shows rising insurance coverage. |
| Increase over 2022-23 | 32% | Improved participation. |
| Area covered | 6.2 crore hectares | Risk protection across large agricultural area. |
| Applications since inception | 86 crore | Scale of scheme implementation. |
| Claims disbursed | ₹1.90 lakh crore+ | Income stabilisation during shocks. |
| YES-TECH | Remote sensing-based yield estimation | Improves objectivity and transparency. |
| WINDS | Weather stations and automatic rain gauges | Better weather data for crop insurance. |
Cooperatives and Sustainable Agriculture
Cooperatives and PACS Reform
Cooperatives enable collective action in credit, input supply, marketing, storage and processing, especially for small farmers. Recent reforms aim to convert PACS into multipurpose rural service institutions through model bye-laws allowing more than 25 activities.
Sustainable Agriculture
Sustainable agriculture requires crop diversification, efficient use of water, fertilisers and energy, integrated nutrient and pest management, organic farming, natural farming and climate-resilient technologies.
| Scheme / Initiative | Purpose | Key Fact |
|---|---|---|
| Crop Diversification Programme | Promotes alternative crops and restores soil fertility through legumes. | Implemented under RKVY. |
| PKVY | Promotes organic farming in States/UTs outside North East. | Supports sustainable farming practices. |
| MOVCDNER | Organic value chains in North Eastern Region. | Region-specific organic farming support. |
| National Mission on Natural Farming | Scaled-up natural farming intervention. | Budget of ₹2,481 crore. |
| NMNF Clusters | Natural farming clusters established. | 17,632 clusters covering 6.39 lakh hectares. |
| Community Resource Persons | Training and outreach support. | 32,224 CRPs trained. |
| NFCS | Online Natural Farming Certification System. | 6 lakh farmers registered. |
Organic and natural farming still cover only a small fraction of total cultivated land. Scaling requires quality inputs, better extension, market linkage, certification and credible price premiums.
Food Processing: Value Addition and Rural Jobs
The food processing industry is one of India’s largest organised manufacturing employers, accounting for 12.91% of organised manufacturing employment. In FY25, agri-food exports including processed foods totalled USD 49.43 billion, around 11.2% of total exports.
Food Processing Schemes
| Scheme | Objective | Achievement |
|---|---|---|
| PM Kisan Sampada Yojana | Modern infrastructure, farm-to-retail chains, lower post-harvest losses, processing capacity and exports. | 1,185 projects completed as of 30 November 2025. |
| PLI Scheme for Food Processing | Build globally competitive food processing enterprises. | 169 applications approved by 31 December 2025. |
| PLISFPI Investments | Supports branding and marketing abroad. | ₹9,207 crore investments reported and ₹2,162.55 crore incentives disbursed. |
| PMFME | Formalisation of micro food processing enterprises. | 4,04,062 applications sent to banks and 1,72,707 loans sanctioned. |
| PMFME Women SHG Support | Seed capital for SHG members. | ₹1,277.45 crore sanctioned for 3,65,935 women SHG members. |
Food Management: Procurement, Storage, PDS and Food Security
India’s food management system covers procurement of wheat, rice and coarse grains from farmers, their movement and storage, and distribution through Fair Price Shops. It stabilises supplies, supports farmers through procurement and ensures affordable food access for vulnerable households.
NFSA, TPDS, AAY and PMGKAY
NFSA 2013 provides a legal guarantee of subsidised foodgrains to nearly 67% of India’s population. Rural coverage is 75% and urban coverage is 50%, covering around 81.35 crore beneficiaries based on the 2011 Census. Antyodaya Anna Yojana covers about 2.5 crore poorest-of-the-poor households.
| Food Security Component | Key Fact | UPSC Significance |
|---|---|---|
| TPDS | Introduced in 1997, replacing universal PDS. | Targeting the poor through BPL and APL categories. |
| AAY | Introduced in 2000; covers about 2.5 crore households. | Supports poorest of the poor. |
| NFSA 2013 | Legal guarantee of subsidised foodgrains. | Rights-based food security framework. |
| NFSA Rural Coverage | 75% | Higher rural food security coverage. |
| NFSA Urban Coverage | 50% | Urban vulnerable households included. |
| PMGKAY | Free foodgrains to all NFSA beneficiaries. | Central Government funded food security support. |
Technology, Targeting and Transparency
The chapter highlights major digital reforms in food subsidy delivery: ONORC, DBT, Aadhaar-based deduplication, ePoS devices, Anna Chakra logistics optimisation and GPS-based Vehicle Location Tracking System.
Beneficiary Verification and Logistics Reform
Inter-database integration across CBDT, GSTN, PM-KISAN and other platforms flagged 8.51 crore records for verification. After field verification, over 2.12 crore ineligible beneficiaries were removed by States/UTs, improving targeting.
Food subsidy reforms are moving from only “availability of grain” to “portable, targeted, digital and transparent food security”. This is important for migrants, urban poor and marginalised groups.
Conclusion: Way Forward for Agriculture and Food Management
The chapter concludes that agriculture will remain central to Viksit Bharat, inclusive growth and rural livelihoods. India has achieved strong production growth in dairy, poultry, fisheries and horticulture, while cooperatives, FPOs and digital initiatives are improving credit, technology and market access.
However, climate change, water scarcity, fragmented holdings, productivity gaps and weak market integration continue to constrain farmer incomes. The way forward is to deepen reforms, strengthen irrigation, invest in R&D, promote climate-resilient technologies, empower FPOs and cooperatives, improve logistics and build risk-management systems.
Revive water bodies, expand assured irrigation and promote drip and sprinkler systems.
Invest in climate-resilient, pest-resistant and high-yielding varieties.
Correct nutrient imbalance, restore soil carbon and promote balanced fertilisation.
Move towards crops aligned with water availability, soil fertility, market demand and nutrition.
Agriculture policy must now combine food security with productivity, sustainability and income security. The next stage of agricultural transformation requires farm-to-fork value chains, climate-resilient farming, balanced input use and stronger market linkages.
UPSC Prelims, Mains and Essay Takeaways
- Agriculture supports 46.1% of India’s workforce.
- Agriculture and allied sector average growth was around 4.4% over five years.
- FY16-FY25 decadal growth was 4.45%.
- Foodgrain production in AY 2024-25 was 3,577.3 LMT.
- Horticulture production reached 362.08 MT in 2024-25.
- Over 25.55 crore Soil Health Cards issued.
- Ground Level Credit reached ₹28.69 lakh crore in FY25.
- ONORC covers nearly 80 crore NFSA beneficiaries.
- Agriculture growth now depends more on productivity than area expansion.
- Allied sectors are key to raising rural incomes.
- Food security must be aligned with crop diversification and nutrition security.
- Fertiliser reform is essential for soil health and long-term productivity.
- Digital agriculture can improve targeting, market access and extension.
- Food processing can reduce wastage and generate rural jobs.
- From food security to nutrition and income security.
- Agriculture as the foundation of Viksit Bharat.
- Climate-resilient agriculture and rural prosperity.
- Cooperatives, FPOs and collective strength.
- Digital public infrastructure for farmers.
- Farm-to-fork reforms for a resilient food system.
Key Terms Explained
| Term | Simple Meaning | UPSC Use |
|---|---|---|
| GVA | Gross value added by a sector. | Use in agriculture contribution analysis. |
| MSP | Minimum price announced by government for selected crops. | Price support and farmer income. |
| PM-KISAN | Direct income support scheme for eligible farmers. | Income support and DBT example. |
| PMFBY | Crop insurance scheme against weather, pests and crop loss. | Risk management in agriculture. |
| FPO | Farmer Producer Organisation for collective marketing and bargaining. | Small farmer aggregation. |
| PACS | Primary Agricultural Credit Societies. | Cooperative credit and rural service delivery. |
| e-NAM | Digital platform linking agricultural markets. | Agricultural marketing reform. |
| ONORC | One Nation One Ration Card portability system. | Migrant-friendly food security. |
| NFSA | Rights-based law for subsidised foodgrain distribution. | Food security framework. |
| Anna Chakra | Tool for optimising foodgrain logistics. | Technology in food subsidy delivery. |
Internal Links for UPSC Economy Preparation
Continue your preparation with the Economic Survey 2025-26 complete summary for UPSC. You can also use these related IASment study sections:
- Previous Chapter: Economic Survey 2025-26 Chapter 5 Inflation
- UPSC Economy Notes for concept clarity.
- UPSC Prelims Economy Strategy for MCQ-focused preparation.
- UPSC Mains GS Paper 3 Economy Notes for analytical answer writing.
FAQs on Economic Survey 2025-26 Chapter 6
What is Economic Survey 2025-26 Chapter 6 about?
It is about agriculture and food management in India, including agriculture and allied sector growth, productivity challenges, input reforms, irrigation, credit, mechanisation, income support, crop insurance, cooperatives, food processing and food security systems.
Why is this chapter important for UPSC?
This chapter is important for GS Paper 3 Agriculture, food security, MSP, irrigation, farmer income, crop insurance, cooperatives, food processing, PDS and rural development.
What are the most important facts from this chapter?
Important facts include: agriculture supports 46.1% of workforce, agriculture and allied sector average growth was around 4.4% over five years, foodgrain production was 3,577.3 LMT in AY 2024-25, horticulture output reached 362.08 MT, and NFSA covers 81.35 crore beneficiaries.
What are the major productivity challenges in Indian agriculture?
Major challenges are fragmented landholdings, limited irrigation, weak market and storage infrastructure, low mechanisation, limited quality input access, uneven extension services, imbalanced fertiliser use and climate-related yield instability.
Why are allied sectors important?
Allied sectors such as livestock, fisheries and horticulture are growing faster than the crop sector and help diversify farm incomes. They also support nutrition, exports, rural employment and income resilience.
What does the chapter say about fertiliser reform?
The chapter highlights the worsening N:P:K imbalance due to excessive nitrogen use through urea. It suggests reorienting fertiliser support towards soil health, balanced nutrient use and efficiency-driven crop growth.
What is the role of food processing in Chapter 6?
Food processing reduces post-harvest losses, increases value addition, improves exports, creates rural jobs and strengthens farm-to-market linkages. It accounts for 12.91% of organised manufacturing employment.
What are the key food management reforms mentioned in the chapter?
Key reforms include NFSA, PMGKAY, ONORC, Aadhaar seeding, ePoS devices, DBT in select areas, Anna Chakra logistics optimisation, GPS-based vehicle tracking and database-based beneficiary verification.
Official Source and Chapter Navigation
For the official document, refer to the Official Economic Survey 2025-26 source.
This IASment page is a UPSC-oriented educational summary prepared for revision, conceptual clarity and exam use.