Key Agricultural Schemes and Programs for Farmers in India

Agriculture forms the backbone of the Indian economy, employing nearly half of the national workforce and contributing around 16–18% to the Gross Value Added. To enhance farm income, mitigate yield risks, build post-harvest infrastructure, and foster sustainable farming practices, the Ministry of Agriculture and Farmers Welfare along with allied ministries implements several centrally sponsored and central sector schemes. These interventions span direct income support, credit access, crop insurance, micro-irrigation, digital market integration, and natural farming incentives.

Income Support and Credit Access Mechanisms

Financial liquidity and access to institutional credit prevent smallholders from falling into informal debt traps.

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

• Scheme Type and Outlay: Central Sector Scheme with 100% funding from the Government of India, launched in February 2019 (retrospective from December 2018).
• Financial Benefit: Provides ₹6,000 per year directly to eligible landholding farmer families in three equal installments of ₹2,000 every four months.
• Delivery Mechanism: Disbursed via Direct Benefit Transfer (DBT) linked with Aadhaar verification and AgriStack database integration.
• Exclusion Criteria: Institutional landholders, former/present constitutional office holders, serving/retired government employees, and income tax payers in the last assessment year are excluded.

Kisan Credit Card (KCC) Scheme

• Inception: Introduced in 1998 based on the recommendations of the R. V. Gupta Committee to provide flexible credit to farmers.
• Coverage: Covers short-term crop loans, post-harvest expenses, consumption requirements, farm asset maintenance, and allied activities including animal husbandry, dairying, and fisheries.
• Interest Subvention Framework: Short-term crop loans up to ₹3 lakh are provided at a concessional interest rate of 7%. The central government offers a 1.5% interest subvention to banks, while an additional 3% Prompt Repayment Incentive brings the effective interest rate down to 4%.

Risk Mitigation and Crop Insurance

Climate variability, pest attacks, and natural disasters necessitate institutional risk transfer instruments.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Launch Date: Formulated in February 2016 under the “One Nation, One Scheme” theme, replacing the National Agricultural Insurance Scheme (NAIS) and Modified NAIS.
• Premium Structure: Farmers pay a uniform low premium capped at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for annual commercial/horticultural crops. The remaining premium is split equally (50:50) between the Centre and States (90:10 in North-Eastern States).
• Coverage Scope: Covers prevented sowing, standing crop yield losses due to non-preventable risks, post-harvest losses up to 14 days, and localized calamities like hailstorms and landslides.
• Voluntary Status: Made 100% voluntary for all farmers starting Kharif 2020.

Restructured Weather Based Crop Insurance Scheme (RWBCS)

• Provides coverage against localized weather anomalies such as adverse rainfall, extreme temperatures, relative humidity, and frost using automatic weather stations.

Infrastructure, Irrigation, and Soil Management

Improving resource-use efficiency and building storage assets reduces post-harvest losses and raises crop productivity.

Agriculture Infrastructure Fund (AIF)

• Financial Envelope: A ₹1 Lakh Crore financing facility launched in July 2020 for medium-to-long term debt financing.
• Incentives Provided: Offers a 3% per annum interest subvention on loans up to ₹2 Crore for a maximum period of 7 years, along with credit guarantee coverage under the CGTMSE scheme.
• Target Beneficiaries: Primary Agricultural Credit Societies (PACS), Farmer Producer Organizations (FPOs), Agri-entrepreneurs, Startups, and Joint Liability Groups building cold storage, assaying units, and warehouses.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

• Motto: Formulated in 2015 by merging existing programs under the vision of “Har Khet Ko Pani” and “Per Drop More Crop”.
• Core Components:
  • Accelerated Irrigation Benefit Programme (AIBP): Managed by the Ministry of Jal Shakti for major and medium irrigation projects.
  • PMKSY-Per Drop More Crop (PDMC): Focuses on micro-irrigation systems such as drip and sprinkler systems to increase water-use efficiency.
  • Watershed Development Component: Focuses on soil conservation, rain-water harvesting, and groundwater recharge in rainfed regions.

Soil Health Card (SHC) Scheme

• Launch: Launched in February 2015 in Suratgarh, Rajasthan, with the slogan “Swasth Dharaa, Khet Haraa”.
• Operational Cycle: Soil samples are collected and tested every 3 years to provide customized recommendations on 12 parameters: N, P, K (Macro-nutrients); S (Secondary-nutrient); Zn, Fe, Cu, Mn, Bo (Micro-nutrients); and pH, EC, OC (Physical parameters).

Market Reforms, Price Support, and Sustainable Farming

Integrating trade architecture and promoting sustainable inputs stabilizes price realization for primary producers.

National Agriculture Market (e-NAM)

• Platform Overview: A pan-India electronic trading portal launched in April 2016 that networks physical Agricultural Produce Market Committee (APMC) mandis into a unified online market.
• Operational Capabilities: Provides single-window services for APMC information, commodity arrivals, quality assaying, online bidding, and direct electronic payment settling into farmer accounts.

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

• Objective: Assures Minimum Support Price (MSP) realization for pulses, oilseeds, and copra.
• Three Sub-Schemes:
  • Price Support Scheme (PSS): Physical procurement of pulses, oilseeds, and copra by central agencies (NAFED, FCI).
  • Price Deficiency Payment Scheme (PDPS): Direct cash transfer of the difference between MSP and market price for oilseeds without physical procurement.
  • Private Procurement and Stockist Scheme (PPSS): Pilot involvement of private sector in procurement of notified oilseeds.

Key Agricultural Schemes Overview

Core Agriculture Schemes Facts

• Constitutional List: Agriculture falls under Entry 14 of the State List (List II) in the Seventh Schedule of the Indian Constitution.
• Credit Allocation Target: The annual ground-level agriculture credit target for banks is set in the annual Union Budget, crossing ₹20 lakh crore in recent years.
• First Organic State: Sikkim became the first 100% organic state in the world in 2016.
• Namo Drone Didi Scheme: Provides agricultural drones to 15,000 Women Self-Help Groups (SHGs) for liquid fertilizer and pesticide spraying services.
• PM-PRANAM: Scheme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth incentivizes states to reduce chemical fertilizer consumption.
• PM Krishi Maandhan Yojana (PM-KMY): Central Sector pension scheme providing a minimum fixed monthly pension of ₹3,000 to small and marginal farmers upon attaining age 60, subject to monthly contributions of ₹55 to ₹200.
• AgriStack Framework: Digital infrastructure initiative establishing a unique Farmer ID, digital crop survey, and geo-referenced village maps across states.