Agricultural Schemes, Analysis & Their Key Features in India

Table of content

Agriculture continues to be the backbone of India’s economy, employing more than half of the population and contributing around 18% to the country’s GDP (2023–24, Economic Survey). However, Indian farmers face challenges like erratic monsoons, low incomes, rising input costs, and market fluctuations.

To address these issues, the Government of India has launched a series of agricultural schemes to provide support in the form of financial aid, crop insurance, irrigation, soil health management, and market access. These schemes are crucial not only for farmer welfare but also for ensuring food security and rural development.

Why Are Agricultural Schemes Important?

Agricultural schemes serve multiple purposes beyond providing financial aid. They act as a backbone for rural stability and boost the agricultural sector’s contribution to the economy.

Key Benefits:

Financial Security: Regular cash support ensures that farmers can buy inputs like seeds and fertilizers.
Risk Reduction: Crop insurance and disaster relief protect farmers from natural calamities.
Productivity Boost: Irrigation and soil health initiatives improve yields.
Market Reforms: Digital platforms like e-NAM ensure better price realization.
Social Security: Pension schemes like PM-KMY safeguard old-age farmers.

Following Are the Key Agricultural Schemes in India

1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Launched in 2019, PM-KISAN is one of the largest direct income support schemes for farmers.

Objective: To ensure small and marginal farmers receive a steady income to meet basic agricultural expenses.
Features:
- ₹6,000 per year in three instalments.
- DBT ensures transparency.
- Beneficiaries include farmers owning up to 2 hectares of cultivable land.
Impact Data: Till 2024, over ₹2.8 lakh crore has been transferred to nearly 9.7 crore farmers.
Importance: Acts as a safety net against rising costs of cultivation and supports day-to-day needs.

2. Pradhan Mantri Fasal Bima Yojana (PMFBY)

Launched in 2016, PMFBY is a flagship insurance scheme.

Objective: To provide affordable crop insurance and reduce risks from crop failure.
Features:
- Premium rate: 2% (Kharif), 1.5% (Rabi), 5% (commercial crops).
- Covers losses from natural calamities, pests, and diseases.
- Remote sensing & drones are being used for faster claim assessments.
Impact Data: In 2023–24, over 3.5 crore farmers enrolled, covering 40 million hectares.
Challenges: Delays in compensation and exclusion of tenant farmers.
Importance: Reduces farmer distress and prevents dependence on moneylenders.

3. Kisan Credit Card (KCC)

Introduced in 1998, KCC is vital for easy access to credit.

Objective: To provide short-term and working capital loans for farming.
Features:
- Loans up to ₹3–5 lakh.
- Interest subvention (4% effective interest rate on timely repayment).
- Covers crop loans, consumption needs, and allied activities (like animal husbandry).
Impact Data: As of 2023, 7.3 crore active cards were in circulation.
Importance: Helps farmers avoid high-interest informal loans and ensures liquidity for farming activities.

4. Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

Water availability is one of the biggest challenges in Indian agriculture. PMKSY, launched in 2015, addresses this.

Objective: “Har Khet Ko Pani” (Water to every farm).
Features:
- Micro-irrigation through “Per Drop More Crop.”
- Watershed development to conserve water.
- Infrastructure for better water distribution.
Impact Data: Over 80 lakh hectares covered under micro-irrigation.
Importance: Improves efficiency of water use and reduces dependence on monsoon rains.

5. Soil Health Card Scheme

Soil degradation is a serious concern in India. This scheme aims to promote soil-friendly practices.

Objective: To improve soil fertility by providing crop-wise fertilizer recommendations.
Features:
- Soil tested every 2 years.
- Cards include details on nutrients like NPK, zinc, iron, and organic carbon.
Impact Data: Over 23 crore soil health cards distributed.
Importance: Helps reduce fertilizer misuse and promotes sustainable farming.

6. Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY)

Pradhan Mantri Kisan Maan-Dhan Yojana was launched in 2019, this pension scheme ensures financial security for ageing farmers.

Objective: To provide social security after retirement age.
Features:
- Pension of ₹3,000/month after 60 years.
- Small monthly contributions (₹55–200).
Importance: Gives dignity and financial support to elderly farmers.

7. National Agriculture Market (e-NAM)

India’s fragmented markets often reduce farmers’ income. e-NAM integrates markets digitally.

Objective: To connect mandis through a single electronic platform.
Features:
- Transparent price discovery.
- Farmers can sell to buyers anywhere in India.
- Removes middlemen exploitation.
Impact Data: By 2024, over 1,260 mandis connected and lakhs of farmers registered.
Importance: Ensures better market access and fair pricing.

Recent Government Initiatives in Agriculture

Along with flagship schemes, the government regularly introduces new initiatives to support farmers:

Digital Agriculture Mission 2021–2025: Promotes technology use like AI, drones, and blockchain in farming.
Agri-Infrastructure Fund (2020): Provides ₹1 lakh crore financing facility for post-harvest infrastructure like warehouses and cold chains.
FPO Promotion Scheme: Aims to form 10,000 Farmer Producer Organizations (FPOs) to strengthen collective bargaining power.
Budget 2024–25: Allocated ₹1.37 lakh crore for agriculture and allied sectors.

These show the government’s focus on modernizing agriculture and doubling farmer incomes.

Challenges in Implementation of Agricultural Schemes

Despite their potential, agricultural schemes face obstacles:

Low Awareness: Many farmers, especially in remote areas, are unaware of available schemes.
Exclusion of Tenant Farmers: Most schemes benefit landowners, excluding sharecroppers and landless laborers.
Delayed Benefits: Crop insurance claims and subsidy payments sometimes take months.
Infrastructure Gaps: Poor internet access affects digital platforms like e-NAM.
Financial Constraints: Budgetary limitations restrict expansion.

Addressing these challenges is key to making schemes more inclusive and effective.

FAQs

Q1. What is the importance of agricultural schemes in India?

Agricultural schemes provide financial security, improve productivity, offer crop insurance, and ensure better market access. They also play a crucial role in farmer welfare and food security.

Q2. Which is the largest farmer income support scheme in India?

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is the largest scheme, providing ₹6,000 annually to over 9.7 crore farmers through Direct Benefit Transfer (DBT).

Q3. What is the main purpose of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

The PMFBY aims to provide affordable crop insurance, reduce risks of crop failure due to natural calamities, and ensure compensation for farmers at low premium rates.

Q4. How does the Kisan Credit Card (KCC) help farmers?

The KCC provides easy and affordable loans for farming and allied activities, helping farmers avoid high-interest informal loans and ensuring liquidity for inputs like seeds, fertilizers, and machinery.

Q5. Which scheme is focused on irrigation and water use efficiency?

The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) ensures “Har Khet Ko Pani” (water to every farm) and promotes micro-irrigation with the slogan “Per Drop More Crop.”

Priti Palit

Priti Palit, is an accomplished edtech writer with 4+ years of experience in Regulatory Exams and other multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.