The Union Cabinet has approved an outlay of ₹3.15 lakh crore to continue the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) till 2030-31 to ensure the government is helping farmers’ incomes and strengthening the agricultural sector. Now millions of eligible farming families from across the country will be made to access direct financial support in the next five years, the decision will be approved by the Modi government.
A scheme introduced in February 2019, the PM-KISAN scheme provides ₹6,000 annually to eligible farmer families in three equal instalments of ₹2,000 each and the money is transferred directly to beneficiaries’ bank accounts under the Direct Benefit Transfer (DBT) system. The scheme aims to assist farmers pay for agricultural costs and buying seeds and fertilizers and to manage household needs without relying on informal credit.
To the extent the cabinet has given the approval of ₹3.15 lakh crore allocation would be to maintain the government's focus on rural livelihoods and income support to small and marginal farmers. Since its establishment, PM-KISAN has become one of the world’s largest direct income support programmes for farmers and the programme has benefited crores of agricultural households across India.
According to government data, the scheme has significantly improved the efficiency of welfare delivery by directly transferring financial assistance to the recipients of the welfare program in terms of income and has helped to reduce leakages and ensure greater transparency. Aadhaar-linked bank accounts and digital payment infrastructure were used for early payment to provide for the benefits that were meant to be distributed to farmers.
The continuation of PM-KISAN until 2030-31 will allow farmers to achieve more financial stability in a time of uncertainty in weather, fluctuating crop prices and higher input costs. Well-paid income support enables farmers to buy high quality seeds, fertilizers, irrigation, farm equipment and other agricultural inputs that contribute to better productivity.
Agriculture is still one of the largest sources of employment in India and still supports the livelihoods of millions of rural families. Government officials said that expanding PM-KISAN would complement other agriculture projects to improve irrigation, crop insurance, digital agriculture, access to markets and rural infrastructure.
While direct income support for farmers will be a major source of help in growing productivity, improved productivity, irrigation facilities, sustainable farming practices, better storage capacity, and better access to markets for farmers can be beneficial to long-term agricultural growth, experts say.
Continuing the scheme is expected to increase rural consumption when beneficiaries use the support to purchase agricultural and household goods and services. Rural spending will also have positive impacts on local businesses, agricultural input suppliers and the wider rural economy.
Farmers organisations had generally welcomed the extension of the scheme and said that predictable income support would alleviate financial stress for farmers who are already suffering from low income, especially small and marginal farmers. But some experts have suggested periodic reviews to review beneficiary identification and to make sure all eligible farmers are made aware of the assistance for this scheme and for the most needy farmers.
With a budget of ₹3.15 lakh crore, the PM-KISAN scheme will continue to be at the core of India’s agricultural welfare scheme until 2030-31, reinforcing the policy to provide financial security to farmers and develop a sustainable rural society.
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