Economic Survey 2025-26: PM-KISAN, MSP And The Future of Agriculture In India

With Budget 2026, hovering just around the corner, the Economic Survey for the year 2025-26 has been released. Highlighting several growth areas in the Indian economy, one that stood strong was the Indian agricultural sector. India’s agricultural support framework currently rests on two major pillars: price support through the Minimum Support Price (MSP) and direct income support through welfare schemes. Together, they become the backbone of farm income stabilisation in an environment marked by climate uncertainty, market volatility and rising investment costs. The MSP increase for the Kharif Marketing Season (KMS) 2025-26 and the Rabi Marketing Season (RMS) 2026-27, alongside continued support from PM-KISAN. This underlines the dual approach taken by the government, which protects the prices while ensuring predictable cash flows to farmers.

PM-KISAN: Being Farmers' Safety Net

Ever since the inception of PM-KISAN, this scheme has evolved into India’s most extensive direct income support scheme for farmers. Presently, over Rs 4.09 lakh crore has been released to the eligible beneficiaries across its 21 instalments to date. The scheme provides a steady and assured income supplement that is detached from the choice of crops, market prices, and procurement operations. For small and marginal farmers, this scheme’s predictability becomes very crucial.

Unlike price-based support, PM KISAN delivers cash directly into the bank accounts of the beneficiaries. This enables farmers to meet the repetitive cultivation expenses such as seeds, fertilisers, labour and energy costs. This income is not just limited to agricultural usage; beneficiaries get this monetary support for all sorts of expenses they might have to take care of.

The presence of such income support schemes becomes helpful when there’s a rise in production costs. While MSP hikes aim to ensure a minimum return on investments made by the farmers for their produce, PM KISAN reaches farmers irrespective of what they choose to produce. This reinforces the role of a basic income floor for the rural economy.

MSP vs PM-KISAN: Who Benefits More and Where?

The MSP system continues to be a vital instrument for price stabilisation and food security. As MSP increases, the return on key crops has risen steadily, which was noticed in the past three seasons. The data shared in the survey report shows that while staples have witnessed moderate hikes, the larger growth was seen in pulses. This reflects a policy intent to prioritise crops aligned with nutritional security.

The shortcomings of MSP are that the benefits are not evenly distributed across all segments. The incentives are dependent on the type of produce the farmer grows. Farmers concentrated in eastern, central and rainy regions often sell below the MSP. For them, the price support does not translate into income security for the farmers.

On the other hand, PM KISAN overcomes this asymmetry. Since it is crop-neutral and not centric to geographical restrictions, it reaches all farmers equally and in a timely manner. In rainfed areas, PM KISAN payments often matter more than the MSP announcements. In this sense, MSP and PM KISAN are not substitutes; they are complementary.

MSP remains indispensable for price assurance for the farmers. PM KISAN has emerged as the broadest safety net for farmers across various crop varieties and regions. The culmination of MSP and PM KISAN provides stability in the short term while creating a space for long-term reforms.