What policies affect farmers’ choice to grow that crop?

Farmers’ crop choices are strongly influenced by government pricing, input subsidies, irrigation, and market access policies. Minimum Support Price (MSP) programs favor crops like wheat and rice, encouraging continued production even in water-stressed regions. Conversely, horticultural crops like onions or vegetables lack MSP support, making them more market-driven but also riskier. 

Schemes such as Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) improve irrigation coverage, while the RKVY and Paramparagat Krishi Vikas Yojana (PKVY) promote diversification and organic farming. Insurance programs under PM Fasal Bima Yojana protect against yield loss. Export policies, buffer stock management, and state procurement decisions also influence profitability. 

For example, periodic export bans on onions affect farmer returns, while fertilizer and power subsidies support high-input crops like wheat and sugarcane. Access to storage, credit, and cold-chain logistics further shape planting decisions. Hence, farmers weigh price stability, input cost, and climate risk when deciding which crop to grow.