Agriculture remains the backbone of the Indian economy, providing livelihoods to nearly 60% of the population. The central government has consistently introduced subsidy schemes and welfare programs aimed at boosting agricultural productivity, ensuring farmer welfare, and promoting sustainable farming practices. These schemes provide financial support, technological assistance, crop insurance, and direct benefit transfers. Among the most impactful are the PM Kisan Samman Nidhi Yojana and Mahtari Vandana Yojana, which address different but interconnected areas of rural development and agriculture.
Importance of Agricultural Subsidy Schemes
Agricultural subsidy schemes play a crucial role in stabilizing the rural economy. They help mitigate the risks associated with farming, such as crop failure, unpredictable weather patterns, and fluctuating market prices. These subsidies also encourage farmers to adopt new technologies, invest in better equipment, and improve overall productivity. By lowering the cost of cultivation and increasing returns, government schemes ensure that farmers can sustain their livelihoods and contribute to national food security.
Moreover, these programs are essential in promoting inclusive growth. Small and marginal farmers, who constitute the majority in India, often lack access to credit, modern inputs, and market infrastructure. Subsidy schemes fill this gap, ensuring equitable support across regions and communities.
PM Kisan Samman Nidhi Yojana: A Direct Benefit Transfer Scheme
Launched in December 2018, the PM Kisan Samman Nidhi Yojana (PM-KISAN) is one of the most significant subsidy schemes for farmers in India. Under this program, eligible farmer families receive ₹6,000 per year in three equal installments of ₹2,000 each. The funds are directly transferred to the bank accounts of beneficiaries, ensuring transparency and reducing leakages.
Key Features:
- Eligibility: Small and marginal farmer families owning cultivable land.
- Exclusions: Institutional landholders, income taxpayers, and professionals such as doctors, engineers, and lawyers.
- Objective: To provide assured income support to all landholding farmer families.
Since its inception, PM-KISAN has benefited over 11 crore farmers across the country. The scheme helps farmers meet agricultural expenses, purchase seeds and fertilizers, and reduce dependence on informal credit sources.
Mahtari Vandana Yojana: Supporting Women and Families in Rural India
Though not exclusively an agricultural subsidy scheme, the Mahtari Vandana Yojana plays an important role in supporting rural families, especially women. This scheme offers pregnant and lactating women financial assistance to improve maternal and child health. Its indirect impact on agriculture is notable, as it strengthens rural households’ economic security, allowing families to invest more in farm-related activities.
Highlights:
- Eligibility: Pregnant women and lactating mothers (excluding central/state government employees).
- Assistance Provided: Financial aid during pregnancy and the postnatal period.
- Indirect Benefits: Helps reduce malnutrition, improves health outcomes, and increases productivity among rural women engaged in agriculture.
Empowering rural women has a ripple effect on agricultural productivity. Many women participate in farm labor, livestock rearing, and food processing. Financial assistance ensures they can focus on health and well-being while contributing meaningfully to agricultural tasks.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Another cornerstone of the central government’s agricultural subsidy policy is the Pradhan Mantri Fasal Bima Yojana (PMFBY). Introduced in 2016, this crop insurance scheme provides farmers with coverage and financial support in the event of crop loss due to natural calamities, pests, or diseases.
Salient Features:
- Premium Rates: 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops.
- Coverage: Crop damage due to drought, flood, hailstorm, pests, etc.
- Benefits: Financial protection encourages farmers to take risks and adopt new technologies.
PMFBY has helped millions of farmers recover from losses, ensuring their sustainability in the agricultural sector. It also reduces their dependency on moneylenders and boosts their confidence to invest in their fields.
Soil Health Card Scheme
Sustainable agriculture is vital for long-term productivity, and the Soil Health Card Scheme launched in 2015 promotes this principle. The scheme aims to provide each farmer with a card containing details about the nutrient status of their soil and recommendations for suitable fertilizers and crop types.
Benefits:
- Customized Fertilizer Use: Reduces wastage and overuse of chemicals.
- Cost Reduction: Optimizes input use and increases crop yields.
- Environmental Sustainability: Prevents soil degradation and promotes organic practices.
This program complements subsidy schemes like PM-KISAN by encouraging informed investment in inputs, enhancing productivity, and reducing ecological harm.
Kisan Credit Card (KCC) Scheme
The Kisan Credit Card Scheme, initiated by NABARD in 1998, has been significantly revamped under recent central government reforms. It provides farmers with short-term credit for purchasing agricultural inputs such as seeds, fertilizers, pesticides, and even equipment.
Key Features:
- Low Interest Rates: Subsidized credit up to a certain limit.
- Flexibility: Easy repayment schedules aligned with harvesting periods.
- Integration with PM-KISAN: Farmers registered under PM-KISAN can also apply for KCC, improving access to formal credit.
The KCC scheme ensures that farmers are not trapped in high-interest informal lending cycles. It supports timely agricultural investment and contributes to overall farm profitability.
Ankhein Shayari In Hindi – आंखों पर शायरी
Integrated Approach: How These Schemes Work Together
While each scheme has its unique purpose, the true strength lies in their integrated approach to rural and agricultural development. The PM Kisan Samman Nidhi Yojana provides baseline income, the Mahtari Vandana Yojana secures women’s health and family welfare, while schemes like PMFBY, Soil Health Card, and KCC address the core operational aspects of farming.
Together, these initiatives create a safety net and an enabling environment for farmers to thrive. The government’s use of digital platforms and Aadhaar-linked transfers ensures that subsidies reach the right beneficiaries without delay or corruption.
Key Benefits of Integration:
- Holistic Development: Covers income support, health, credit, insurance, and education.
- Improved Living Standards: Enables rural families to access better healthcare, education, and housing.
- Agricultural Modernization: Encourages the adoption of modern tools, techniques, and crop planning.