All Central Government Schemes for the Welfare of Indian Farmers

Ministries, Benefits, and Pros & Cons Explained in Simple Indian English

Farming is the backbone of India’s economy. More than half of India’s population depends on agriculture for their income. To support farmers, the Central Government of India has launched many schemes that aim to increase productivity, reduce risk, and improve farmers’ income.

In this blog, we will explain all major central government schemes for Indian farmers, which ministry runs them, and what are their advantages and disadvantages.

1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Handled by: Ministry of Agriculture and Farmers Welfare 

What it is:
PM-KISAN gives direct cash support to farmers. Every year, eligible farmers get ₹6,000 in three equal installments directly in their bank accounts through DBT (Direct Benefit Transfer).

Main Aim:
To provide some financial help to small and marginal farmers for buying seeds, fertilizers, or other farm needs.

Pros:

• Gives instant cash support to farmers.

• Simple process — money comes directly to the bank account.

• Helps small farmers manage small expenses during the crop season.

Cons:

• The amount (₹6,000 per year) is small compared to the rising cost of farming.

• Many tenant farmers or landless labourers are not included.

• Some delay or duplication issues occur in beneficiary lists.

2. Pradhan Mantri Fasal Bima Yojana (PMFBY)

Handled by: Ministry of Agriculture and Farmers Welfare (through insurance companies and state governments)

What it is:
This is a crop insurance scheme to protect farmers from losses due to natural disasters, pests, or diseases. Farmers pay a small premium, and the rest is paid by the government.

Main Aim:
To make sure farmers do not suffer financial loss if their crop fails due to reasons beyond their control.

Pros:

• Provides financial security in case of crop failure.

• Encourages farmers to continue farming even after bad seasons.

• Uses technology like satellite and drones for faster loss estimation.

Cons:

• Many farmers face delays in claim settlement.

• Some insurance companies profit while farmers wait for payments.

• Not all crops or regions get full coverage.

3. Kisan Credit Card (KCC)

Handled by: Ministry of Finance and NABARD, with banks implementing it.

What it is:
KCC provides farmers with easy and quick loans at low interest rates for farming activities. It works like a debit card, and farmers can withdraw money when needed.

Main Aim:
To give farmers access to credit easily and reduce their dependence on moneylenders.

Pros:

• Easy access to short-term and long-term loans.

• Lower interest rates compared to private loans.

• Includes accident insurance and credit flexibility.

Cons:

• Many small or tenant farmers still don’t have KCC due to paperwork.

• Risk of over-borrowing if not used carefully.

• Requires good banking network in rural areas.

4. Soil Health Card Scheme

Handled by: Ministry of Agriculture and Farmers Welfare

What it is:
Farmers’ soil is tested and given a Soil Health Card that tells which nutrients are lacking and how much fertilizer should be used.

Main Aim:
To help farmers use the right amount of fertilizer and improve soil health.

Pros:

• Encourages balanced use of fertilizers.

• Reduces cost of inputs and improves productivity.

• Helps in long-term fertility and better yields.

Cons:

• Not all farmers get their soil tested regularly.

• Many farmers don’t understand the report properly.

• Testing labs are limited in many districts.

5. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

Handled by: Ministry of Jal Shakti and Ministry of Agriculture

What it is:
PMKSY focuses on irrigation — “Har Khet Ko Pani” and “Per Drop More Crop.” It supports building water sources, drip irrigation, and water-saving methods.

Main Aim:
To ensure every farm has access to irrigation water and to use water efficiently.

Pros:

• Reduces dependence on rainwater.

• Promotes micro-irrigation and saves water.

• Increases productivity and crop variety.

Cons:

• High initial cost for installing drip or sprinkler systems.

• Unequal implementation across states.

• Needs strong monitoring and technical support.

6. e-NAM (National Agriculture Market)

Handled by: Ministry of Agriculture and Farmers Welfare, and SFAC

What it is:
An online trading platform that connects all APMC mandis of India. Farmers can see prices and sell their produce to buyers from other states.

Main Aim:
To give farmers better prices by connecting them to a national market.

Pros:

• Brings transparency in price and reduces middlemen.

• Farmers get access to a larger market and better price discovery.

• Quick digital payments.

Cons:

• Many farmers are not trained to use the digital platform.

• Physical transport and quality testing are still challenges.

• Some states are slow to connect mandis to e-NAM.

7. Paramparagat Krishi Vikas Yojana (PKVY)

Handled by: Ministry of Agriculture and Farmers Welfare

What it is:
A scheme that promotes organic farming through cluster-based approach. Farmers are trained and supported to grow crops without chemicals.

Main Aim:
To encourage organic farming and protect soil and human health.

Pros:

• Reduces dependence on chemical fertilizers and pesticides.

• Organic products can fetch higher prices in the market.

• Promotes eco-friendly and sustainable farming.

Cons:

• Certification and market access are difficult.

• Yields may drop in the first few years.

• Awareness and support are limited in many areas.

8. Agriculture Infrastructure Fund (AIF)

Handled by: Ministry of Agriculture and NABARD

What it is:
A fund that provides loans with interest subvention for building warehouses, cold storage, food processing units, and other farm infrastructure.

Main Aim:
To reduce post-harvest losses and improve income by creating storage and processing facilities.

Pros:

• Encourages private investment in rural areas.

• Reduces food wastage and improves value addition.

• Helps farmer producer organizations (FPOs) and cooperatives.

Cons:

• Requires proper planning and documentation for loans.

• Small farmers may find it hard to apply individually.

• Delays in loan approvals in some banks.

9. Rashtriya Krishi Vikas Yojana (RKVY)

Handled by: Ministry of Agriculture & State Governments

What it is:
A flexible scheme that allows states to plan agricultural development projects such as crop diversification, mechanization, and value addition.

Main Aim:
To help states improve productivity and ensure holistic growth of the agriculture sector.

Pros:

• Allows states to plan according to their local needs.

• Supports innovation and technology use.

• Includes allied sectors like dairy, fisheries, and horticulture.

Cons:

• Success depends on how actively states implement it.

• Lack of uniform monitoring across states.

10. PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan)

Handled by: Ministry of Agriculture and Food Corporation of India (FCI)

What it is:
A programme that ensures farmers get Minimum Support Price (MSP) for their crops through procurement or price support.

Main Aim:
To protect farmers when market prices fall below the MSP.

Pros:

• Gives income security to farmers for major crops.

• Ensures food security for the country.

• Supports market price stability.

Cons:

• MSP procurement mostly benefits rice and wheat farmers.

• Many farmers, especially in eastern India, don’t get MSP support.

• Storage and transportation issues cause wastage.

11. Atma Nirbhar Bharat Krishi Package

Handled by: Ministry of Finance & Agriculture Ministry

What it is:
Announced during COVID-19, this package included special funds and credit facilities for agri-infrastructure, animal husbandry, and fisheries.

Main Aim:
To make agriculture self-reliant and boost rural economy.

Pros:

• Provides financial support for long-term agriculture growth.

• Encourages food processing and exports.

• Helps create jobs in rural areas.

Cons:

• Benefits take time to reach small farmers.

• Implementation needs better monitoring.

12. National Mission on Sustainable Agriculture (NMSA)

Handled by: Ministry of Agriculture & Farmers Welfare

What it is:
A mission to promote climate-resilient farming practices such as rainwater harvesting, soil conservation, and efficient resource use.

Main Aim:
To make agriculture sustainable and climate-friendly.

Pros:

• Helps farmers adapt to climate change.

• Promotes soil and water conservation.

• Encourages organic and low-cost inputs.

Cons:

• Still limited reach and awareness among small farmers.

• Funding and training support need improvement.

Ministries and Departments Responsible

Common Benefits of These Schemes

1. Financial Support: Direct help to farmers through cash, credit, or subsidies.

2. Risk Reduction: Insurance and MSP provide a safety net.

3. Better Productivity: Soil, water, and technology-based schemes increase yield.

4. Market Access: e-NAM and AIF improve selling and storage facilities.

5. Digital Transparency: Most schemes use DBT and online registration to reduce corruption.

Common Challenges and Limitations

1. Unequal Reach: Not all farmers get equal benefits; landless and tenant farmers often miss out.

2. Implementation Gaps: Many schemes face delays at the state or district level.

3. Awareness: Many farmers don’t know about available schemes.

4. Small Benefit Amount: In some schemes, financial support is too small to make a big difference.

5. Need for Better Coordination: Ministries and states must work together for full impact.