PM-KISAN’s Financial Aid: Is It Enough?

Launched in February 2019, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme has been a cornerstone of India’s agricultural policy, aiming to provide financial support to small and marginal farmers. As of August 2, 2025, the 20th installment of ₹2,000 was disbursed to approximately 9.7 crore farmers, totaling ₹20,500 crore in direct transfers . This initiative underscores the government’s commitment to bolstering the agrarian economy.

The Issue

Despite its noble intentions, PM-KISAN faces several challenges that hinder its effectiveness. The scheme’s reliance on accurate land records and digital infrastructure has led to the exclusion of many eligible farmers. Furthermore, the fixed annual assistance of ₹6,000, disbursed in three installments, may not be sufficient to meet the diverse needs of farmers across different regions and cropping patterns.

Data and Analysis

• Financial Outlay: Since its inception, PM-KISAN has disbursed significant funds to farmers. The 20th installment alone involved a transfer of ₹20,500 crore to 9.7 crore beneficiaries.
• Beneficiary Challenges: Studies indicate that approximately 34% of beneficiaries have missed at least one installment due to issues like data discrepancies and technical glitches . Common problems include incorrect Aadhaar details, outdated land records, and difficulties in completing e-KYC processes .
• Exclusion of Certain Farmer Groups: Tenant farmers, sharecroppers, and landless agricultural laborers are often excluded from the scheme due to its focus on land ownership as a criterion for eligibility .

Way Forward

To enhance the efficacy of PM-KISAN, the following measures are recommended:

1. Inclusion of Non-Landholding Farmers: Expand eligibility to include tenant farmers, sharecroppers, and landless laborers through community verification and self-declaration mechanisms.
2. Increase Financial Assistance: Adjust the annual assistance amount to account for inflation and regional cost variations, ensuring that the support provided is adequate and meaningful.
3. Improve Data Management: Invest in the digitization and regular updating of land records to minimize errors and ensure accurate beneficiary identification.
4. Enhance Digital Literacy: Implement training programs to improve farmers’ digital literacy, enabling them to navigate online platforms for registration and grievance redressal effectively.
5. Strengthen Grievance Redressal Mechanisms: Establish robust and accessible systems for addressing beneficiary complaints and resolving issues promptly.

Conclusion

PM-KISAN represents a significant step toward supporting India’s agricultural community. However, to realize its full potential, the scheme must evolve to address its current shortcomings. By broadening its inclusivity, enhancing financial support, and improving administrative processes, PM-KISAN can become a more effective tool in uplifting the livelihoods of farmers and strengthening the nation’s agrarian economy.