Unseasonal rains and crop losses cut paddy farmers’ income by 10% in key Indian states during FY26, the worst drop since the pandemic.

Unseasonal rains and crop damage have caused a 10% drop in paddy farmers’ net income in West Bengal, Uttar Pradesh, and Chhattisgarh during FY26, the worst since the pandemic, according to an Elara Securities report. Prices for black gram, cotton, soyabean, and maize fell sharply below minimum support prices due to oversupply, poor quality, and delayed harvests. Duty-free imports of key crops and expectations of a future India-US trade deal further suppressed prices. While state-level subsidies and stable rural wages offer some relief, central rural spending slowed to 45% of the budget by October 2025, down from 52% the prior year, due to weak tax revenues and lower GDP growth.