Major Government Agricultural Schemes and the National Policy for Farmers
Geography › Agriculture and Crop Geography · Topic 11.11
Major schemes for farmers include PM-KISAN (2019), which gives Rs 6,000 a year in three instalments to farmer families; the Pradhan Mantri Fasal Bima Yojana (2016) for crop insurance; the Kisan Credit Card; PMKSY for irrigation; Soil Health Card; PM-KUSUM for solar pumps; e-NAM for markets; and the scheme to form 10,000 farmer producer organisations. The National Policy for Farmers, 2007, based on the National Commission on Farmers chaired by M. S. Swaminathan, aims at the profitability and the economic viability of farming and the welfare of farmers.
5 min read · UPSC Prelims · Geography · Agriculture and Crop Geography
At a Glance
- PM-KISAN Rs 6,000 a year; launched 2019
- PMFBY Crop insurance; 2016
- KCC Credit for inputs; 1998
- Policy National Policy for Farmers, 2007
- Commission National Commission on Farmers (Swaminathan)
- Exam link UPSC Prelims, Geography: Agriculture and Crop Geography
Where Does It Fit?
This topic follows the topic on agricultural labour and prices and lists the main support schemes. It completes the policy part of the macro, before the topics on climate and technology. Previous topic: Agricultural Labour and Price Policy. Next topic: Impact of Climate Change on Agriculture and Sustainable Agriculture Practices.
What Is the National Policy for Farmers, 2007?
- Origin: the National Commission on Farmers, headed by M. S. Swaminathan, submitted five reports between 2004 and 2006. The Government approved the National Policy for Farmers in November 2007.
- Aim: to improve the economic viability of farming by raising net income, and to treat farmers’ welfare as an objective, including asset reform, water use, support services, credit and insurance, food security and the use of science.
- MSP formula: the Commission recommended that the minimum support price should be at least 50 per cent more than the weighted average comprehensive cost of production (C2 plus 50 per cent). This has remained a demand, since the government’s formula uses A2+FL plus 50 per cent, as in Agricultural Labour and Price Policy.
- Other proposals: land reform and a national land use advisory service, irrigation, access to credit at low rates, a Social Security Fund for farmers, and a Farmers’ Commission.
Which Are the Major Schemes?
| Scheme | Content |
|---|---|
| PM-KISAN (2019) | Direct income support of Rs 6,000 a year in three equal instalments to eligible farmer families, through direct benefit transfer |
| Pradhan Mantri Fasal Bima Yojana (2016) | Crop insurance with low farmer premium (2 per cent for kharif, 1.5 per cent for rabi and 5 per cent for horticulture and cash crops), with the rest shared by the Centre and states |
| Kisan Credit Card (1998) | Short-term credit for inputs at low interest, with interest subvention for timely repayment; extended to animal husbandry and fisheries |
| Pradhan Mantri Krishi Sinchayee Yojana (2015) | Irrigation expansion and efficiency, as in Infrastructure Factors: Seeds, Fertilizers, Irrigation |
| Soil Health Card (2015) | Soil testing and advice on fertilizer |
| PM-KUSUM (2019) | Solar pumps and solar plants for farmers |
| e-NAM (2016) | Online national market linking mandis |
| Agriculture Infrastructure Fund (2020) | Rs 1 lakh crore for post-harvest and community farming assets |
| FPO scheme (2020) | Formation and promotion of 10,000 farmer producer organisations |
| Rashtriya Krishi Vikas Yojana (2007) and National Mission for Sustainable Agriculture | State-level development and climate-resilient agriculture |
| Digital Agriculture Mission (2024) | Digital public infrastructure, as in Use of Information Technology in Agriculture |
| PM Dhan-Dhaanya Krishi Yojana (announced 2025) | Programme for districts with low productivity; details to be checked |
How Are the Schemes Judged?
- Strengths: direct transfers reduce leakage and give cash support to small farmers; insurance and credit cover risks.
- Weaknesses: tenant farmers and sharecroppers are often left out; delays in insurance payment and complex claims; income support is small compared with costs; fertiliser and electricity subsidies distort input use; and the benefits are uneven across states.
- Fiscal cost: subsidies on fertiliser, food and electricity together make up a large share of the Union budget.
- Doubling income: the government set a target in 2016 to double farmers’ real income by 2022-23; most estimates found it was not met.
- Way forward: shift from input subsidies to support for productivity, diversification, markets and risk cover, along with a stronger role for farmer producer organisations.
State governments run their own schemes as well, such as Rythu Bandhu in Telangana, KALIA in Odisha and Krishak Bandhu in West Bengal, which give income support per acre or per household, and Karnataka and Maharashtra have run loan waivers in some years, which critics say harm the credit culture. Women farmers have been given a separate focus under the Mahila Kisan Sashaktikaran Pariyojana. As an analytical point, the policy challenge is to raise farmers’ incomes without harming soil, water and the budget. The sector’s performance and problems are in Performance of the Agriculture Sector and Types of Farming.
Why Is This Topic Important?
- Schemes Names, years and features
- Commission Swaminathan formula
- Debate Subsidies versus investment
What Came Next?
The next topic describes the impact of climate change on agriculture and sustainable practices. Next topic: Impact of Climate Change on Agriculture and Sustainable Agriculture Practices.
Key People and Terms
- PM-KISAN Income support scheme
- PMFBY Crop insurance scheme
- KCC Kisan Credit Card
- FPO Farmer producer organisation
- DBT Direct benefit transfer
- C2+50 Swaminathan MSP formula
Exam Corner
Points to Remember
- PM-KISAN: Rs 6,000 a year in three instalments.
- PMFBY premium: 2% kharif, 1.5% rabi.
- National Policy for Farmers: 2007.
- KCC started in 1998.
- Target: 10,000 FPOs.
Do Not Confuse With
- PM-KISAN and PMFBY Income support versus crop insurance
- KCC and PM-KUSUM Credit versus solar pumps
- NCF reports and National Policy Commission’s reports versus the Government’s policy
Memory Hook
Six thousand to KISAN, Fasal Bima insures, card for credit, e-NAM sells.
Mains Angle
Questions ask for evaluation of schemes and the goal of doubling income. These points add depth.
- Support Income, credit, insurance
- Gaps Tenants and delays
- Shift From subsidies to investment
A Question You May Face
An original practice question, not a past paper question.
“Discuss the major schemes for the welfare of farmers in India and the recommendations of the National Commission on Farmers.”
How to Answer
- Commission Swaminathan and 2007 policy.
- Schemes Income, insurance, credit.
- Evaluate Strengths and gaps.
- Way ahead Investment and markets.
GS Relevance
Frequently Asked Questions
What is the PM-KISAN scheme?
PM-KISAN, launched in February 2019, is a Central scheme that gives eligible farmer families an income support of Rs 6,000 a year, paid in three equal instalments of Rs 2,000 directly into their bank accounts. It started with small and marginal farmers and was later extended to all landholding farmer families.
What is the Pradhan Mantri Fasal Bima Yojana?
The Pradhan Mantri Fasal Bima Yojana, launched in 2016, is a crop insurance scheme that covers losses from natural calamities, pests and diseases. Farmers pay a low premium of 2 per cent for kharif crops, 1.5 per cent for rabi crops and 5 per cent for horticultural and commercial crops, and the government pays the rest.
What was the National Commission on Farmers?
The National Commission on Farmers, chaired by M. S. Swaminathan, was set up in 2004 and submitted five reports by 2006. It recommended land reform, water and credit access, insurance, and a minimum support price of at least 50 per cent above the comprehensive cost of production. The government adopted the National Policy for Farmers in 2007.
What is the Kisan Credit Card scheme?
The Kisan Credit Card scheme, started in 1998, provides farmers with short-term credit for seeds, fertiliser and other inputs through a single card at low interest, with an interest subsidy for prompt repayment. It was later extended to animal husbandry and fisheries farmers.
What are farmer producer organisations?
Farmer producer organisations are collectives of farmers, registered as companies or cooperatives, that pool produce and inputs to improve bargaining power, access to markets and credit and reduce costs. A Central scheme launched in 2020 aims to form and promote 10,000 such organisations.
PYQ Practice — Statement Analysis
1 PM-KISAN provides Rs 6,000 a year in three instalments.
Launched in 2019.
2 The Swaminathan Commission recommended MSP at C2 plus 50 per cent.
Government uses A2+FL plus 50.
3 The Kisan Credit Card was started in 2016.
It was started in 1998.
4 PMFBY is a crop insurance scheme.
It began in 2016.
Past Mains Questions on This Topic
This topic comes under Agriculture and Crop Geography. UPSC Mains questions asked on the matching syllabus topic, year-wise with marks:
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