Major Central Government Schemes for Agriculture and Farmers

Agricultural transformation in India relies on targeted central sector and centrally sponsored schemes to ensure income support, institutional credit, risk mitigation, and sustainable resource management. The Ministry of Agriculture and Farmers Welfare, along with allied ministries, implements these interventions to modernize farming practices and create resilient rural value chains. These programs support the entire agricultural life cycle—from soil preparation and seed procurement to post-harvest processing and direct income assistance.

Direct Income Support and Credit Initiatives

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)

PM-KISAN is a Central Sector Scheme launched in February 2019 (effective from December 2018) to supplement the financial needs of land-holding farmer families across the country.

• Financial Assistance: Eligible land-holding farmer families receive income support of ₹6,000 per year.
• Payment Structure: The amount is transferred directly into the bank accounts of beneficiaries in three equal quarterly installments of ₹2,000 via Direct Benefit Transfer (DBT).
• Identification: State Governments and Union Territory administrations identify the farmer families that qualify for support under the scheme guidelines.

Kisan Credit Card (KCC) Scheme

Introduced in 1998 based on the recommendations of the R.V. Gupta Committee, the KCC scheme provides timely institutional credit to farmers for their agricultural and allied requirements.

• Scope and Coverage: Covers short-term credit requirements for cultivating crops, post-harvest expenses, produce marketing loans, and working capital for maintenance of farm assets.
• Allied Extension: Extended to animal husbandry, fisheries, and dairy farmers to meet their operational credit needs.
• Interest Subvention Framework: Farmers receive credit at a subsidized interest rate of 7% per annum. Prompt repayment earns an additional 3% prompt repayment incentive (PRI), bringing the effective interest rate down to 4%.

Risk Management and Resource Conservation

PMFBY (Pradhan Mantri Fasal Bima Yojana)

Launched in 2016 after replacing the National Agricultural Insurance Scheme (NAIS) and Modified NAIS, PMFBY offers comprehensive crop insurance against non-preventable natural risks.

• Uniform Premium Rates: Farmers pay a uniform maximum premium of 2% for all Kharif crops, 1.5% for all Rabi crops, and 5% for annual commercial and horticultural crops.
• Subsidy Sharing: The remaining actuarial premium is shared equally (50:50) between the Centre and States, except in the North-Eastern States where the central subsidy share is 90%.
• Technological Integration: Uses remote sensing, smartphone applications, and drone technology for rapid crop damage assessment and faster claim settlements.

PMKSY (Pradhan Mantri Krishi Sinchayee Yojana)

Formulated in 2015 by merging the Accelerated Irrigation Benefit Programme (AIBP), Integrated Watershed Management Programme (IWMP), and On-Farm Water Management (OFWM).

• Core Motto: Guided by two primary goals—”Har Khet Ko Pani” (extending water coverage to every farm) and “Per Drop More Crop” (promoting micro-irrigation via drip and sprinkler systems).
• Implementing Agencies: Executed jointly by the Ministry of Water Resources, Ministry of Rural Development, and Ministry of Agriculture.

Soil Health Card (SHC) Scheme

Launched in February 2015 at Suratgarh, Rajasthan, the scheme issues physical cards detailing the nutrient status of agricultural soils.

• Parameter Testing: Assesses soil health across 12 parameters: macro-nutrients (N, P, K), secondary nutrients (S), micro-nutrients (Zn, Fe, Cu, Mn, Bo), and physical parameters (pH, EC, OC).
• Issuance Cycle: Cards are issued to farmers every 3 years to enable targeted application of fertilizers and soil amendments.

Infrastructure and Value Chain Modernization

Agriculture Infrastructure Fund (AIF)

Approved in July 2020, AIF provides a medium-to-long term debt financing facility for investment in viable post-harvest management infrastructure and community farming assets.

• Financial Corpus: Mobilizes ₹1,000,000 crore in loans provided by banks and financial institutions.
• Interest Subvention: Loans carry an interest subvention of 3% per annum up to a limit of ₹2 crore for a maximum period of 7 years.
• Credit Guarantee: Credit guarantee coverage is extended to eligible borrowers under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Formation and Promotion of 10,000 FPOs

Launched in 2020, this Central Sector Scheme establishes 10,000 new Farmer Producer Organizations (FPOs) across India.

• Scale and Aggregation: FPOs aggregate produce, lower input costs, and improve bargaining power for small and marginal farmers.
• Financial Support: Provides financial management support up to ₹18 lakh per FPO for three years, along with matching equity grants up to ₹2,000 per member (maximum ₹15 lakh per FPO).

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan)

Initiated in March 2019 by the Ministry of New and Renewable Energy (MNRE) to provide energy security and promote solar energy deployment among farmers.

• Off-Grid and Grid Systems: Installs standalone solar agriculture pumps, solarizes existing grid-connected agriculture pumps, and sets up small solar power plants on barren lands.
• Income Generation: Allows farmers to sell surplus solar power generated on their lands back to local power distribution utilities.

Comparison of Primary Central Agricultural Schemes

Key Facts and Trivia for Quick Revision

• PM-KISAN is a 100% Central Sector Scheme with complete funding provided by the Government of India.
• The Kisan Credit Card (KCC) scheme was designed on the recommendations of the R.V. Gupta Committee in 1998.
• NABARD prepares the Model KCC Scheme guidelines followed by commercial banks, Regional Rural Banks (RRBs), and Cooperative Banks.
• PMFBY sets farmer premium shares at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops.
• The Soil Health Card scheme assesses soil samples based on 12 distinct chemical and physical parameters.
• Soil Health Cards are distributed to farmers on a 3-year recurring cycle.
• Suratgarh in Rajasthan served as the launch location for the Soil Health Card Scheme in February 2015.
• The Agriculture Infrastructure Fund (AIF) provides an interest subvention of 3% per annum on loans up to ₹2 crore.
• Small and marginal farmers operating less than 2 hectares of land constitute over 85% of India’s total operational farm holdings.