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India’s PM Kisan Samman Nidhi Scheme – Introduction, Objectives, and Impact on Farmers

In a country where agriculture is the backbone of the economy and the livelihood of a significant population depends on it, the Government of India introduced the PM Kisan Samman Nidhi Scheme with the aim of providing financial assistance to farmers. Launched in February 2019, this ambitious scheme has since substantially impacted the lives of millions of farmers across the nation.

Understanding PM Kisan Samman Nidhi Scheme

The PM Kisan Samman Nidhi Yojana, introduced by the Government of India, is more than just a policy; it’s a lifeline for millions of farmers across the country. With its roots deep in the soil, this scheme aims to provide direct income support to small and marginal farmers, ensuring their financial stability and well-being.

Pradhan Mantri Kisan Samman Nidhi is a central sector scheme under the government of India that provides income support to farmers and their families. PM-KISAN scheme was first implemented as the Rythu Bandhu scheme by the Government of Telangana where a certain amount was handed directly to the eligible farmers. Later, on 1 February 2019, during the 2019 Interim Union Budget of India, Piyush Goyal announced the implementation of this scheme as a nationwide project.

Prime Minister Narendra Modi launched the PM-KISAN scheme on 24 February 2019 in Gorakhpur, Uttar Pradesh. Under this scheme, all small and marginal farmers will be provided with income support of Rs.6,000 per year in three instalments which will be deposited directly to their bank accounts. The total annual expenditure for this scheme is expected to be Rs.75,000 crore which will be financed by the Union Government.

Key Objectives of PM-KISAN Scheme – 

Income Stabilization –  The primary objective of the PM Kisan Samman Nidhi Scheme is to provide financial support to farmers to stabilize their income. This becomes crucial, especially during times of crop failure or other unforeseen circumstances that can lead to financial distress.

Encouraging Small and Marginal Farmers –  By specifically targeting small and marginal farmers, the scheme aims to address the disparities in income within the agricultural community. These farmers often face greater challenges in accessing credit and resources, and the scheme seeks to bridge this gap.

Promoting Agricultural Productivity – The scheme indirectly promotes agricultural productivity by providing farmers with a stable income. With financial stability, farmers can invest in better seeds, fertilizers, and technology, ultimately leading to increased productivity.

Direct Benefit Transfer (DBT) –  The use of direct benefit transfer ensures that the financial assistance reaches the intended beneficiaries without any intermediaries. This not only reduces the scope for corruption but also ensures timely disbursement of funds.

Impact on Farmers under this scheme

The PM Kisan Samman Nidhi Scheme has profoundly impacted the lives of farmers across the country.

1. Financial Empowerment –  The direct transfer of funds into the bank accounts of farmers has empowered them financially. This money can be used for various purposes, such as purchasing seeds, fertilizers, and equipment, and meeting other household expenses.

  •  Enhanced Purchasing Power –  Direct fund transfer enables farmers to have direct access to financial resources. This increased liquidity empowers them to make timely and strategic decisions in purchasing agricultural inputs such as seeds, fertilizers, and equipment. This, in turn, can lead to improved crop yields and overall farm productivity.
  • Diversification of Income Sources: The additional funds can also be utilized for diversifying income sources. Farmers can invest in small-scale enterprises or side activities that complement their agricultural ventures, providing them with a more stable and diversified income stream.

2. Risk Mitigation – Farmers face numerous risks, including crop failure, natural disasters, and market fluctuations. The assured income support from the scheme acts as a safety net, helping farmers mitigate some of these risks.

  • Cushion Against Crop Failure –   Agriculture is inherently susceptible to various risks, such as unpredictable weather patterns leading to crop failure. The guaranteed income support acts as a cushion during such adversities, preventing farmers from falling into a financial crisis. This ensures that they can recover and prepare for the next farming season without facing severe economic setbacks.
  • Resilience Against Natural Disasters –   Natural disasters like floods or droughts can have devastating effects on agriculture. The PM Kisan Samman Nidhi Scheme helps farmers withstand the financial shocks associated with such disasters, enabling them to rebuild their farms and livelihoods.

3. Improved Standard of Living – The additional income has contributed to an improvement in the standard of living for many farmers. It allows them to invest in education, healthcare, and other essential needs for their families.

  • Investment in Education – The additional income allows farmers to invest in the education of their children. This contributes to breaking the cycle of poverty, as educated children are more likely to have access to better opportunities, thereby improving the overall socio-economic status of the family.
  • Better Healthcare –  Improved financial conditions enable farmers to prioritize health-related expenses. They can afford better healthcare services, ensuring that family members receive necessary medical attention when required. This contributes to an overall improvement in the health and well-being of the farming community.

4. Encouragement for Sustainable Practices – With a more stable income, farmers are better positioned to adopt sustainable agricultural practices. This can include using organic farming methods, efficient water management, and adopting technology for improved yield.

Adoption of Organic Farming –  Sustainable farming practices often require an initial investment and a shift in traditional methods. The stable income from the scheme provides farmers with the financial flexibility to experiment with and adopt organic farming practices. This not only benefits the environment but also opens up new markets for organic produce.

Technological Adoption –  Technology plays a crucial role in modern agriculture. With a more stable income, farmers can invest in agricultural technology, such as precision farming tools, IoT devices, and improved irrigation systems. This adoption of technology enhances efficiency and productivity while minimizing resource wastage.


The PM Kisan Samman Nidhi Scheme represents a significant step towards addressing the economic challenges faced by India’s small and marginal farmers. CSC Digital Seva services offer a convenient, secure, and fastest way to all your services under one roof. Digital Seva Services is one top solution providers having a presence across PAN India basis. Visit our website and explore more services and income-generation opportunities for a secure future with us.

By providing direct income support, the scheme not only stabilizes the financial condition of farmers but also contributes to the overall development of the agricultural sector. Digital Seva Kendra offers a wide range of banking services, money transfers, loan facilities, PAN card services, Aadhar card services, etc.

As the government continues to refine and expand the program, it is crucial to address the challenges and criticisms to ensure that the benefits reach all deserving farmers.

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