Cash support to farmers set to lift consumption demand in FY26-27

Cash transfer schemes and welfare programmes are likely to play a pivotal role in supporting household consumption in FY27, with a significant impact on rural demand and farm-linked incomes, according to a report by CRISIL.

- Commodity Desk

Economists highlighted that direct income support to farmers and low-income households could help offset inflationary pressures and sustain spending momentum. The expansion of state-led cash transfers is emerging as a key driver of consumption, particularly in rural India. Around 17 states and Union Territories have rolled out monthly payout schemes for FY27, largely targeting farmers, women, and economically weaker sections.

These transfers, typically ranging between ₹1,000 and ₹2,500 per month, are increasingly supplementing farm incomes and stabilising rural purchasing power.