Agriculture & FoodImportant2025-02-24

Release of 19th Installment of PM-KISAN Scheme

Q: Which of the following statements about the PM-KISAN scheme is/are correct? 1. It is a Centrally Sponsored Scheme where funding is shared equally between the Centre and the States. 2. The financial benefit of Rs 6,000 per year is restricted exclusively to small and marginal farmers.

D. Neither 1 nor 2 — Statement 1 is incorrect because PM-KISAN is a Central Sector Scheme with 100 percent funding from the Government of India. Statement 2 is incorrect because the scheme was expanded to cover all land-holding farmer families irrespective of their landholding size.

In News

What Happened

Prime Minister Narendra Modi released the 19th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme on February 24, 2025, from Bhagalpur, Bihar. The event marked the sixth anniversary of the scheme's launch. During this event, over 9.8 crore land-holding farmer families received financial assistance exceeding Rs 22,000 crore directly into their bank accounts via Direct Benefit Transfer (DBT).

Why It Matters

This direct cash transfer provides immediate liquidity to farmers, helping them manage agricultural expenses and boosting rural consumption. It also highlights the success of India's Digital Public Infrastructure in delivering leak-proof, targeted welfare on a massive scale without middlemen.

Background

History & Context

PM-KISAN was officially launched on February 24, 2019, from Gorakhpur, Uttar Pradesh. It operates as a Central Sector Scheme, meaning it receives 100 percent funding from the Government of India. The initiative was designed to provide an assured income support of Rs 6,000 per year, distributed in three equal installments, to farmer families to supplement their financial needs for procuring agricultural inputs.

What Changed

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BEFORE: Central agricultural assistance primarily took the form of indirect subsidies like discounted fertilizers or price support for specific crops. NOW: PM-KISAN provides direct, crop-neutral cash income support to farmers' bank accounts.
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BEFORE: When launched in early 2019, the scheme was restricted only to small and marginal farmers with cultivable landholdings up to 2 hectares. NOW: The scheme's mandate was expanded later in 2019 to include all land-holding farmer families, regardless of land size, subject to specific exclusion criteria.
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BEFORE: Welfare disbursements relied heavily on manual verification by local revenue officials, leading to delays and leakages. NOW: The scheme leverages India's digital public infrastructure, mandating Aadhaar-seeded bank accounts and e-KYC for automated, transparent fund transfers.

Prelims Angle

NCERT Connection

This topic connects to Class 11 Indian Economic Development, specifically chapters dealing with rural development and agricultural policies. PM-KISAN exemplifies a policy shift from traditional indirect subsidies to direct income support (DBT), a concept heavily discussed in debates over farm distress and welfare efficiency.

Practice Questions

Q1

Correct Statement(s)

Which of the following statements about the PM-KISAN scheme is/are correct? 1. It is a Centrally Sponsored Scheme where funding is shared equally between the Centre and the States. 2. The financial benefit of Rs 6,000 per year is restricted exclusively to small and marginal farmers.

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