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( As on 23/07/2025 10:57)

Govt leverages digital platforms and infrastructure support to boost farmers’ incomes

In a written reply in the Lok Sabha, Minister of State for Agriculture & Farmers’ Welfare, Shri Ramnath Thakur, highlighted several initiatives undertaken by the government to increase farmers' income through digital platforms and improved agricultural marketing infrastructure.

To provide farmers with better market access, the government launched the National Agriculture Market (e-NAM) in 2016. This platform enables transparent sale of farm produce to a broad base of buyers across multiple markets through digital transactions. Additionally, Farmers Producer Organisations (FPOs) have been integrated into platforms such as e-NAM, ONDC (Open Network for Digital Commerce), and GeM (Government e-Marketplace), expanding their reach in digital commerce.

The Reserve Bank of India (RBI), through its Working Paper Series, has offered insights into the value chain and price realization in agriculture. A study titled “Vegetables Inflation in India: A Study of Tomato, Onion and Potato (TOP)” estimates that farmers receive around 33% of the consumer price for tomatoes, 36% for onions, and 37% for potatoes. Another RBI study, “Price Dynamics and Value Chain of Fruits in India,” finds that farmers earn about 31% of the consumer rupee for bananas, 35% for grapes, and 43% for mangoes. Factors such as the number of intermediaries, high marketing costs, and the perishability of produce significantly affect price realization for farmers.

The government has made improving agricultural marketing and reducing post-harvest losses a top priority. Under the Agriculture Infrastructure Fund (AIF), support is provided for setting up cold storage facilities at the farm gate, within agri-export clusters, and across mandis/APMCs. The aim is to reduce post-harvest losses and enhance farmers’ earnings. As of 30th June 2025, a total of 2,454 cold storage projects have been sanctioned under the AIF, amounting to ?8,258 crore. These projects are being implemented by entrepreneurs, cooperatives, Primary Agricultural Credit Societies (PACS), and Self-Help Groups (SHGs), and are often integrated with grading, sorting, and packaging facilities.

Further support is available under the Mission for Integrated Development of Horticulture (MIDH), which promotes holistic development of the horticulture sector. Financial assistance is provided for setting up pack houses, integrated pack houses, cold storages, reefer transport, and ripening chambers. The scheme is demand-driven and offers a credit-linked back-ended subsidy of 35% of the project cost in general areas and 50% in hilly and scheduled areas through respective State Horticulture Missions (SHMs).

These combined efforts are aimed at strengthening the agricultural value chain, improving market access, and ultimately ensuring better price realization for farmers across the country.