PM-KISAN Scheme Extension to All Farmers

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme represents one of India’s most comprehensive income support initiatives for the agricultural sector. Initially introduced to provide direct financial assistance to small and marginal farmers, the scheme has since been extended to cover all categories of farmers, marking a significant expansion in India’s rural welfare framework.

Background

The PM-KISAN scheme was launched on 24 February 2019 by the Government of India to provide assured income support to farmers and improve their financial stability. Under the scheme, eligible farmer families receive ₹6,000 per year, payable in three equal instalments of ₹2,000 each, directly transferred to their bank accounts via Direct Benefit Transfer (DBT).
When first implemented, the scheme targeted small and marginal farmers owning up to two hectares of cultivable land. The objective was to supplement their income to meet agricultural and household expenses and ensure continued investment in farm activities.
However, recognising the importance of inclusivity and the need to strengthen the rural economy, the Government later announced the extension of the PM-KISAN scheme to all farmers, irrespective of landholding size. This expansion aimed to reach a broader base of beneficiaries, ensuring equitable support for every cultivator engaged in agricultural production.

Policy Extension and Implementation

The decision to extend the PM-KISAN scheme to all farmers was announced in May 2019, ahead of the Union Budget for the financial year 2019–20. This policy change effectively removed the landholding limit, making every farmer owning cultivable land eligible for the benefit.
Key features of the extended scheme include:

• Universal coverage: All landholding farmers, irrespective of size or scale, are entitled to receive the annual ₹6,000 income support.
• Direct transfers: Payments are made through the Direct Benefit Transfer (DBT) system to ensure transparency and prevent leakages.
• Exclusion criteria: Institutional landholders, as well as serving and retired government officers, income-tax payers, and professionals such as doctors, engineers, and lawyers, are excluded from receiving benefits.
• Funding: The scheme is entirely centrally sponsored, with 100% financial responsibility borne by the Government of India.

Objectives and Rationale

The expansion of PM-KISAN aligns with the government’s broader goals of doubling farmers’ income and strengthening rural livelihoods. The key objectives include:

• Providing income security to farmers against fluctuating crop prices and unpredictable weather conditions.
• Ensuring liquidity and purchasing power in rural areas to stimulate economic growth.
• Encouraging financial inclusion by transferring funds directly to farmers’ bank accounts.
• Promoting productive agricultural investment and timely purchase of inputs such as seeds, fertilisers, and equipment.

Impact on the Agricultural Sector

The universalisation of the PM-KISAN scheme has significantly increased its reach and impact. With over 11 crore farmers registered under the scheme, it has become one of the largest direct income support programmes globally.
The benefits of the scheme include:

• Reduction in rural distress, particularly during periods of crop failure or low commodity prices.
• Empowerment of small and marginal farmers, who form the majority of the agricultural workforce.
• Boost in rural consumption, leading to higher demand for goods and services in rural markets.
• Improved transparency and efficiency through digital payment systems and Aadhaar-linked verification.

The scheme also complements other government initiatives such as the Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and Soil Health Card Programme, collectively aimed at ensuring sustainable agricultural growth and financial resilience.

Challenges and Criticisms

Despite its success, the PM-KISAN scheme faces several implementation challenges:

• Identification errors: Land record inconsistencies and outdated ownership data have led to exclusion of genuine beneficiaries in some states.
• Exclusion of tenant farmers: Since benefits are linked to land ownership, sharecroppers and agricultural labourers without land titles often remain outside the coverage.
• State coordination issues: Delays in data verification and bank linkage at the state level have affected timely disbursement of instalments in some cases.
• Limited financial support: Critics argue that ₹6,000 per year provides only partial relief, and does not adequately offset the high cost of cultivation and input expenses.

Economic and Social Significance

The extension of PM-KISAN to all farmers reflects a paradigm shift in India’s approach to agricultural welfare — from input-based subsidies to direct income transfers. This not only reduces administrative inefficiencies but also ensures that assistance reaches beneficiaries directly, without intermediaries.
Socially, the scheme has contributed to enhancing economic dignity and self-reliance among farmers, especially smallholders. The regular income flow helps households manage consumption, education, and healthcare expenses more effectively, reducing dependence on informal credit sources.
Economically, the programme injects substantial liquidity into rural markets, creating a multiplier effect that boosts local commerce and allied sectors. It has also encouraged the adoption of digital financial systems, aligning with the broader goal of a cashless and transparent economy.

Significance in Policy Framework

The PM-KISAN scheme, particularly after its universalisation, stands as a cornerstone of India’s agricultural policy framework. It complements ongoing reforms in rural credit, crop insurance, and irrigation while aligning with the vision of “Atmanirbhar Bharat” (Self-Reliant India).
By ensuring that every farmer family receives direct, unconditional financial support, the government aims to make agriculture more sustainable and economically viable. The extension of PM-KISAN thus signifies both a social commitment to the welfare of farmers and an economic strategy to stabilise rural incomes, enhance productivity, and promote inclusive growth.