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December 29, 2025

High Costs and Rising Strain on Farmers

India’s agricultural sector faces mounting pressure as farmers struggle with rising input costs and unpredictable weather.
In Rajasthan’s Churu district, shrimp farmers are being squeezed by high electricity tariffs of around ₹12 per unit, which now make up nearly 30 % of total production costs. Unlike other states that classify shrimp farming as agricultural and apply lower tariffs, Rajasthan’s treatment as a commercial activity has sharply increased expenses for about 300 farmers involved in the sector. As penalties of up to ₹7–10 lakh have been imposed on those who tried to circumvent these rates, local leaders are urging the state to create special tariff slabs for sustainable agro-industries.
The Times of India
Weather and crop quality continue to affect farmer incomes. In northern Rajasthan, kinnow growers are anxiously awaiting colder temperatures to improve fruit sweetness and market demand. Although production is expected to increase slightly this season, mild minimum temperatures have weakened demand, driving down wholesale prices to ₹7–10 per kg and placing further financial strain on growers.
The Times of India
Across India, agricultural productivity remains at risk from climate stress, infrastructure costs, and fragmented landholdings. Small-scale and marginal farmers often lack access to cooperatives, credit, and modern resources, which hampers their ability to adopt innovations and sustain livelihoods. Reports show that less than 25 % of India’s marginal farmers are members of producer cooperatives, despite forming the majority of farm households, lowering their resilience and bargaining power in tough market conditions.
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