Pradhan Mantri Kisan Samman Nidhi
With a view to providing income support to all landholding farmers’ families in the country, having cultivable land, the Central Government has implemented a Central Sector Scheme, namely, "Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)".
Objective and Benefits
Launched on February 24, 2019, by Prime Minister Narendra Modi, the Pradhan Mantri Kisan Samman Nidhi (PM Kisan) scheme aims to supplement the financial needs of all landholding farmers’ families in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income as well as for domestic needs. Under the Scheme, an amount of Rs. 6000/- per year is released by the Central Government online directly into the bank accounts of the eligible farmers under the Direct Benefit Transfer (DBT) mode, subject to certain exclusions.
This initiative targeted over 14 crore farmer families, excluding institutional landholders, but prioritizing those with up to 2 hectares of cultivable land. By design, it bypassed middlemen, leveraging India's Aadhaar-linked banking infrastructure to ensure transparency. In its first year, it disbursed ₹10,000 crore, setting a precedent for scalable welfare in agriculture.
Eligibility, Exclusions, and the Registration Process
To qualify, farmers must own cultivable land, be an individual (or family head), and not fall under excluded categories like income taxpayers, pensioners drawing over ₹10,000 monthly, or professionals (doctors, engineers). States verify land records via portals like Maharashtra's Mahabhulee or Uttar Pradesh's Bhulekh, integrating with the central PM Kisan portal.
Registration is straightforward: Farmers self-register online at pmkisan.gov.in or via Common Service Centers (CSCs), uploading Aadhaar, bank details, and land documents. e-KYC via OTP or biometrics streamlined this post-2020. As of late 2024, over 9.3 crore beneficiaries were active, with ₹2.85 lakh crore disbursed cumulatively.
Impact on Rural Economies: Beyond the Numbers
PM Kisan's real power lies in stabilizing rural incomes. Studies by NITI Aayog (2023) show it boosted consumption by 10-15% in beneficiary households, spurring demand for FMCG goods, two-wheelers, and farm inputs. In Maharashtra's Vidarbha region—cotton country plagued by suicides—it reduced distress migration by 8%, per ICRIER reports, allowing farmers to invest in drip irrigation or hybrid seeds.
Economically, each ₹1 disbursed multiplies 1.5-2 times via local spending, per RBI analysis. Women farmers gained too: Over 2 crore female-headed households now receive funds, enhancing gender equity in land rights.
Technological Backbone: A Digital Revolution
What sets PM Kisan apart is its tech stack, aligning with India's digital public infrastructure. The PM Kisan portal uses AI-driven fraud detection, flagging duplicates via facial recognition and land overlap algorithms. Integration with Jan Dhan accounts (over 50 crore opened since 2014) ensured 99.9% last-mile delivery, minimizing leakages to under 1%.
Recent upgrades include geo-tagging of land parcels via Bhuvan GIS and drone-based verification pilots in Punjab. During the COVID-19 pandemic, 11 special installments (₹24,000 extra) were released at record speed, showcasing the DBT's resilience.
Challenges and Criticisms: Room for Refinement
Despite successes, gaps persist. Exclusion errors affect 20-30% of smallholders, primarily due to outdated land records, particularly in tribal areas. Delays in state verifications plague eastern states, and the ₹6,000 cap feels inadequate amid 7-8% inflation—doubling it to ₹12,000, as demanded by farmer unions, remains debated.
Climate vulnerability amplifies issues: In 2023-24 droughts, funds couldn't offset crop losses, prompting calls for insurance linkages. Corruption cases, like the ₹1,200 crore Punjab fraud, underscore monitoring needs.
Recent Developments and Future Horizons
By 2025, PM Kisan crossed ₹3.2 lakh crore in disbursements, with the 17th installment announced in 2024. Integration with schemes like PM Fasal Bima Yojana and Kisan Credit Cards via a unified farmer registry promises holistic support.
Looking ahead, AI crop yield predictions and blockchain for supply chains could evolve it into PM Kisan 2.0. In Maharashtra, linking it to onion pricing reforms shows state-level innovation. Ultimately, PM Kisan isn't just cash—it's a springboard for agri-tech startups, sustainable farming, and a $5 trillion economy where small farmers thrive.
This scheme exemplifies welfare with efficiency, but scaling impact demands data-driven tweaks and farmer voices at the center.
