Agriculture has always been the fundamental backbone of the Indian economy, supporting nearly 60% of the country’s population. However, Indian farmers, particularly small and marginal ones, have faced significant challenges over the decades, from uncertain weather and fluctuating market prices to limited access to credit and technology. To address some of these persistent issues and provide direct income support to farmers, the Government of India launched the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) Yojana in December 2018.
This majorly sponsored scheme aims to provide financial support to small and marginal farmers to ensure their economic well-being and help them meet agricultural and domestic needs. Since its inception, PM-Kisan has become one of the largest direct benefit transfer schemes globally, touching the lives of millions of farmers across the country.
Objectives of the PM-Kisan Scheme
The primary objective of the PM-Kisan scheme is to provide assured, direct financial support to eligible farmers and reduce their dependency on loans and credit. The support enables farmers to purchase seeds, fertilizers, agricultural equipment and other necessary inputs easily. Additionally, the scheme aims to reduce distress among farmers and strengthen their capacity to invest in sustainable farming practices.
Key Features of PM-Kisan Samman Nidhi
1. Direct Income Support
Under the scheme, an income support and assistance of ₹6,000 per year is provided to eligible and deserving farmer families. This amount is paid in three equal instalments of ₹2,000 each, every four months — in April-July, August-November, and December-March.
2. Eligibility
The scheme initially targeted only small and marginal farmers with landholding of up to the limit of 2 hectares. However, in June 2019, the eligibility criteria were expanded to cover all farmer families, irrespective of landholding size, subject to certain exclusion criteria.
3. Exclusions
Certain categories are not eligible under PM-Kisan:
- Institutional landholders.
- Families with a member serving or retired from a government post.
- Income taxpayers in the previous assessment year.
- Professionals like doctors, engineers, and lawyers.
- Pensioners with a monthly pension above ₹10,000.
4. Funding and Implementation
The PM-Kisan scheme is fully funded by the Government of India. The funds are directly transferred to the bank accounts of the relevant beneficiaries through the Direct Benefit Transfer (DBT) system to ensure transparency and reduce corruption.
5. Digital Infrastructure
The execution of PM-Kisan is supported by a robust digital infrastructure, including Aadhaar linkage, e-KYC verification, other relevant digital modes, and a centralized online portal (pmkisan.gov.in). This system helps in the identification of genuine beneficiaries and ensures the timely disbursal of funds.
Impact of PM-Kisan Yojana
- Income Stability –The assured income support has provided a safety net for farmers, particularly during times of crisis such as crop failure, natural disasters, or the COVID-19 pandemic. It has improved their ability to manage household expenses and invest in farm inputs.
- Financial Inclusion – The scheme has helped integrate rural households into the formal financial system. With mandatory bank account linkage, many farmers now have access to banking services, encouraging savings and digital transactions.
- Reduction in Debt Dependency- Farmers, especially those with small landholdings, often depend on moneylenders for loans at exorbitant interest rates. The support provided by PM-Kisan helps reduce this dependency to an extent.
- Boost to Rural Economy – With regular income inflow, the rural consumption structure has improved and push the economy. This has had a positive ripple effect on local markets and rural economies, leading to higher demand for desired goods and services, which helps to improve the growth of economy.
Challenges in Implementation
- Inaccurate Land Records – One of the major hurdles in the path of land records details is the availability and accuracy of land ownership records. In several states, outdated or incomplete records delay beneficiary identification.
- Exclusion of Genuine Beneficiaries – Due to technical or documentation issues, some genuine farmers are left out of the scheme. Mismatching in Aadhaar details, bank account issues, lack of awareness are common problems and other relevant error.
- Inclusion Errors – On the flip side, some ineligible individuals have been found receiving benefits due to loopholes or errors in verification. This undermines the integrity of the scheme.
- Awareness and Accessibility – Many farmers, especially those who are situated in remote or tribal areas, are not fully aware and have the proper understanding of the registration process or their other elements.
Steps Taken for Better Implementation
- e-KYC Mandate: The government now requires electronic Know Your Customer (e-KYC) verification to authenticate beneficiaries and minimize fraud.
- Awareness Campaigns: Various other outreach programs are being conducted to inform and make farmers aware about the scheme and it elements and give them proper understanding of registration process.
- Grievance Redressal Mechanism: A dedicated helpline and online grievance redressal system have been established.
Conclusion
The PM-Kisan Samman Nidhi Yojana represents and indicates the landmark effort made by the Indian government to provide direct income support and assistance to farmers properly. By identifying the critical and major role of agriculture in the country’s development, the scheme not only offers immediate and effective relief but also lays the major foundation for long-term rural prosperity and economic growth. While there are implementation challenges, continued reforms, better coordination between the Centre and states, and enhanced transparency can make the scheme more effective and inclusive.
