Major Central Government Schemes for Agriculture and Farmers

Major Central Government Schemes for Agriculture and Farmers

Overview

The Central Government runs a wide range of schemes to support farmers through income transfers, price support, crop insurance, irrigation, natural farming, and digital market access. These programmes are meant to improve farm productivity, reduce risk, and encourage technology-led modernization.

For Prelims revision, the most important points are scheme names, budget allocations, premium caps, launch dates, and the institutional framework behind major agriculture initiatives.

Institutional and Budgetary Framework

  • Ministry leadership: The Ministry of Agriculture and Farmers Welfare is headed by Union Minister Shivraj Singh Chouhan, assisted by Ministers of State Ram Nath Thakur and Bhagirath Choudhary.
  • Budget allocation: In Union Budget 2026–27, the Ministry has been allocated ₹1,40,529 crore.
  • Department-wise split: ₹1,30,561 crore for the Department of Agriculture and Farmers’ Welfare and ₹9,967 crore for the Department of Agricultural Research and Education (DARE).
  • Major scheme outlays: PM-KISAN receives ₹63,500 crore, PMFBY ₹12,200 crore, PM-AASHA ₹7,200 crore, PMKSY ₹6,587 crore and Namo Drone Didi ₹677 crore.
Scheme / Department Budget 2026–27 Allocation (₹ in Crore)
Department of Agriculture and Farmers’ Welfare ₹1,30,561
Department of Agricultural Research and Education ₹9,967
PM-KISAN Scheme ₹63,500
Pradhan Mantri Fasal Bima Yojana (PMFBY) ₹12,200
PM-AASHA ₹7,200
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) ₹6,587
Namo Drone Didi ₹677

Prime Minister Dhan-Dhaanya Krishi Yojana (PM-DDKY)

  • Approval and launch: PM-DDKY was approved on July 16, 2025, and launched on October 11, 2025.
  • Coverage: It targets agricultural modernization in 100 underperforming districts.
  • Duration: The scheme runs for six years, from 2025–26 to 2030–31.
  • Convergence model: It integrates 36 existing Central schemes from 11 ministries and departments.
  • Financial outlay: The total outlay is ₹1.44 lakh crore, or about ₹24,000 crore annually.
  • Monitoring: Progress is tracked through a digital framework using 121 indicators, including 74 output indicators and 47 outcome indicators.
  • Performance tracking: The average score of the 100 districts increased from 22.54 in April 2026 to 38.85 in July 2026.

Direct Income and Price Support Schemes

  • PM-KISAN: This Central Sector Scheme provides ₹6,000 annually in three equal instalments of ₹2,000 to eligible landholding farmers.
  • PM-KISAN transfer: Its 23rd instalment was released on June 20, 2026, transferring ₹18,880 crore to over 9.44 crore farmers.
  • eKYC requirement: eKYC remains mandatory for registered PM-KISAN beneficiaries.
  • PM-AASHA: The scheme supports MSP procurement operations and has been allocated ₹7,200 crore in Union Budget 2026–27.
  • Budget trend: The PM-AASHA allocation marks a 3.7% increase over the revised estimates of 2025–26.
  • PM Kisan Maandhan Yojana (PM-KMY): Small and marginal farmers aged 18 to 40 receive a monthly pension of ₹3,000 after reaching 60 years of age.
  • Contribution structure: Monthly contributions range from ₹55 to ₹200 and are matched equally by the Central Government.
  • Link with PM-KISAN: Registered PM-KISAN beneficiaries can opt for direct deduction of PM-KMY contributions from PM-KISAN benefits.

Risk Mitigation and Irrigation Frameworks

  • PMFBY allocation: Pradhan Mantri Fasal Bima Yojana has been allocated ₹12,200 crore in Union Budget 2026–27.
  • Farmer premium caps: Premiums are capped at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops.
  • Coverage under PMFBY: From Kharif 2016 to Rabi 2025–26, the scheme insured over 92.46 crore farmer applications.
  • Claims settled: Claims worth over ₹2.06 lakh crore were settled for 26.33 crore applications.
  • PMKSY allocation: Pradhan Mantri Krishi Sinchayee Yojana receives ₹6,587 crore in Union Budget 2026–27.
  • Objective of PMKSY: The scheme expands assured irrigation and improves water-use efficiency.
  • Micro-irrigation: The “Per Drop More Crop” component is now implemented under the Rashtriya Krishi Vikas Yojana (RKVY).

Modernization, Digitization and Natural Farming

  • NMNF approval: The National Mission on Natural Farming (NMNF) was approved on November 25, 2024.
  • Financial outlay: The scheme has an outlay of ₹2,481 crore, including ₹1,584 crore as Central share and ₹897 crore as State share.
  • Period: It runs through the 15th Finance Commission period ending in 2025–26.
  • Coverage: As of July 2026, NMNF has enrolled over 20.9 lakh farmers and covered 10.32 lakh hectares across 18,893 clusters.
  • Target: The scheme aims to establish 10,000 Bio-Input Resource Centres (BRCs).
  • e-NAM: The National Agriculture Market platform had integrated 1,656 wholesale mandis across 23 States and 4 Union Territories by March 2026.
  • e-NAM scale: It has registered over 1.80 crore farmers, 2.73 lakh traders and 4,724 Farmer Producer Organizations (FPOs).
  • Trade value: The cumulative trade value on e-NAM stands at ₹4.84 lakh crore since April 2016.
  • Namo Drone Didi: The scheme provides up to 80% financial assistance on drones to women’s self-help groups for agricultural renting.

Key Prelims Takeaways

  • PM-DDKY: A convergence scheme covering 100 underperforming districts, with 36 schemes from 11 ministries and an outlay of ₹1.44 lakh crore.
  • PM-KISAN: Provides ₹6,000 per year in three instalments; eKYC is mandatory.
  • PMFBY: Farmer premium caps are 2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops.
  • PM-AASHA: Supports MSP procurement operations and has a budget allocation of ₹7,200 crore.
  • PM-KMY: Gives a monthly pension of ₹3,000 after 60 years of age to small and marginal farmers.
  • NMNF: Central-State funding split is ₹1,584 crore and ₹897 crore, with a target of 10,000 BRCs.
  • e-NAM: By March 2026, it had 1,656 mandis, over 1.80 crore farmers and a cumulative trade value of ₹4.84 lakh crore.
Originally written on February 27, 2026 and last modified on September 5, 2026.

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