SYLLABUS

GS-2: Welfare Schemes for Vulnerable Sections of the Population by the Centre and States and the Performance of these Schemes.  

Context: The Union Cabinet has approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme from 2026-27 to 2030-31 with a financial outlay of ₹3.15 lakh crore, ensuring continued income support to eligible farmer families.

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• The continuation will enable the transfer of ₹6,000 per year (in three equal instalments) to eligible farmer families through the Direct Benefit Transfer (DBT) mechanism. 

• Since its launch, the scheme has transferred over ₹4.47 lakh crore through 23 instalments to more than 11 crore farmer families across the country. 

• According to the Government, the scheme has improved farmers' liquidity, encouraged timely investment in agriculture and complemented broader efforts to enhance farmers' welfare. 

About PM-KISAN

• Launch: Announced in February 2019 and implemented retrospectively from 1 December 2018, PM-KISAN is a Central Sector Scheme implemented by the Ministry of Agriculture and Farmers' Welfare. 

• Objective: To provide assured income support to eligible landholding farmer families for meeting agricultural and allied expenses. 

• Financial Assistance: Eligible beneficiaries receive ₹6,000 annually in three equal instalments of ₹2,000 each through Direct Benefit Transfer (DBT). 

• Funding Pattern: The scheme is 100% funded by the Central Government. 

• Coverage: Applicable to all eligible landholding farmer families, subject to specified exclusion criteria. 

• Major Exclusions: Institutional landholders, holders of constitutional posts, serving or retired senior government officials, income-tax payers and certain professionals (such as doctors, engineers, lawyers and chartered accountants). 

• Implementation Features: 

• o Aadhaar-based beneficiary authentication. 
• o Direct Benefit Transfer (DBT). 
• o Mandatory e-KYC. 
• o Integration with the Farmer Registry and digital platforms to improve transparency and targeting.

Significance / Impact of PM-KISAN

• Strengthened Farm Liquidity: The assured annual income support has improved farmers' liquidity, enabling them to meet recurring agricultural and household expenses, particularly during sowing seasons. 

• Positive Outcomes in Independent Evaluation: According to the Development Monitoring and Evaluation Office (DMEO), NITI Aayog, over 92% of beneficiaries utilised the assistance for agricultural activities and investments, while around 85% reported improved agricultural income and reduced dependence on informal credit. 

• Women's Financial Inclusion: Women farmers have received over ₹1.06 lakh crore, with nearly one-fourth of all beneficiaries being women, strengthening their direct access to institutional financial support. 

• Contribution to Agricultural Development: During 2020–21 to 2025–26, India recorded an increase of about 9.65% in cultivated area, 10.53% in productivity and 21.18% in foodgrain production. 

Challenges / Concerns

• Limited Impact on Long-Term Farm Income: The annual assistance of ₹6,000 provides short-term income support but remains inadequate to offset rising cultivation costs or address structural challenges such as low productivity, fragmented landholdings and price volatility. 

• Exclusion of Vulnerable Farmers: Since eligibility is linked to land ownership, tenant farmers, sharecroppers and landless agricultural labourers remain outside the ambit of the scheme despite being among the most economically vulnerable. 

• Authentication & e-KYC Issues: Mandatory Aadhaar authentication and e-KYC have resulted in payment delays and exclusion of genuine beneficiaries in several cases due to biometric failures, data mismatches and digital connectivity constraints. 

• Inclusion Errors & Fiscal Sustainability: RTI disclosures revealed that nearly 20 lakh ineligible beneficiaries received PM-KISAN assistance in the initial years, highlighting weaknesses in beneficiary verification and land-record management. 

Way Ahead

• Strengthen Beneficiary Identification: Accelerate the creation and integration of the Digital Farmer Registry with updated land records, strengthen Aadhaar-based verification and regularly update beneficiary databases to minimise both inclusion and exclusion errors. 

• Expand Coverage: Explore an appropriate policy framework to extend income support to genuine tenant farmers and sharecroppers, while maintaining transparency, accountability and fiscal prudence. 

• Strengthen Convergence with Agricultural Reforms: Integrate PM-KISAN more closely with PMFBY, Kisan Credit Card (KCC), e-NAM, the Digital Agriculture Mission and agricultural extension services to improve farmers' resilience and productivity. 

• Complement Income Support with Structural Reforms: Alongside direct cash transfers, prioritise investments in irrigation, mechanisation, crop diversification, value addition, market access and climate-resilient agriculture to achieve sustainable and inclusive growth in farmers' incomes.