Floods, low crop prices plague agriculture, India struggles to protect farmers

Dear reader, as 2025, a year of global tumult and volatility, rolls by, Mint's reporters and columnists look around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at [email protected].India struggled to protect farmers as the country’s agrarian distress worsened in 2025.Severe monsoon rains caused devastating floods in Punjab, inundating almost 200,000 hectares of farmland, besides damaging crops in Haryana and Maharashtra, notably the Marathwada region.

As a result, farmers faced a loss of income and soil damage and sought better compensation and long-term support.If that was not enough, the lower market prices for their produce further eroded their income. Prices for several key commodities slipped below the minimum support price (MSP), at which the government procures produce from farmers.

While the broader macroeconomic environment benefited from low food inflation, the decline in farm-gate prices raised serious concerns about rural incomes and the overall stability of the agricultural economy.Low inflation can adversely affect rural incomes if farmers are forced to sell below the benchmark procurement price. The prices of grains, most pulses and oil seeds such as soybean, groundnut and sunflower are currently below their MSP (See graphic).The deflation in wholesale crop prices pulled consumer inflation down to a record low of 0.25% in October (year on year).

Food prices, which account for about 40% of the consumer basket, fell 5% from a decline of 2.3% in September.The development assumes significance given that about 42% of India’s 1.4 billion population depends on agriculture for livelihood. The sector accounted for 18% of India's GDP in FY24.The