Policy Update
Nivedya Murali
Background
PM Kisan is a Central Sector scheme with 100% funding from Government of India.
Under the scheme which became operational from 1.12.2018, an income support of 6,000/- per year in three equal installments will be provided to all land holding farmer families. Definition of family for the scheme is husband, wife and minor children.
State Government and UT administration will identify the farmer families which are eligible for support as per scheme guidelines.The fund will be directly transferred to the bank accounts of the beneficiaries. There are various Exclusion Categories for the scheme.(PM Kisan Samman Nidhi Department of Agriculture and Farmers Welfare 2018).By providing necessary details, farmers can apply to receive financial support from the government, aimed at ensuring their economic stability and encouraging agricultural productivity.
The whole process is fully digitalised.When the scheme was originally implemented in December 2018, its benefits were limited only to Small and Marginal Farmers (SMFs) who owned up to 2 hectares of cultivable land. However, recognizing the universal financial constraints of farming communities, the government completely revamped the scheme parameters.Through the Universal Expansion of the scheme in June 2019, the cabinet expanded the scope to all landholding farmer families across India, completely removing the land size ceiling.
The Union Cabinet has officially extended the operational timeline of the PM-KISAN scheme to run from 2026-2027 through 2030-2031, allocating a massive budget of ₹3.15 lakh crore for this extended period(PIB,2026)The approval reiterates the Government’s commitment that the prosperity of farmers forms the foundation of the nation’s prosperity. Through the PM-KISAN Scheme, timely and transparent income support is being provided to eligible farmer families through the Direct Benefit Transfer (DBT) system, enabling farmers to increase agricultural investment and strengthen their livelihoods.(PIB,2026)
Functioning
The scheme is 100% funded by the Central Government as a Central Sector Scheme, distributing ₹6,000 annually in three installments of ₹2,000 (April–July, August–November, and December–March)
Section 1 (“Scheme”) and Section 10.1 (“Trimester Intervals”) of the PM-KISAN Revised Operational Guidelines establish this protocol – “the Central Government has implemented a Central Sector Scheme, namely,Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN) where benefits are paid every 4 months. (PRADHAN MANTRI KISAN SAMMAN NIDHI SCHEME
(PM-KISAN SCHEME),2020).
There is Direct Benefit Transfer (DBT) & System Integrations where funds are routed directly into the Aadhaar-seeded bank accounts of farmers via the Public Financial Management System (PFMS) to eliminate intermediaries..” Furthermore, Section 9.6 of the Ministry of Agriculture and Farmers Welfare Technical Manual details the backend integration with PFMS for secure automated transfers.(PRADHAN MANTRI KISAN SAMMAN NIDHI SCHEME(PM-KISAN SCHEME),2019)
State and UT governments carry out the physical identification and database verification of eligible farmer families.The allocation of responsibility is governed by the state framework published on the official PM-KISAN Portal, which confirms that “The states/UTs identify and verify the beneficiaries under the scheme as per the operational guidelines of the scheme.” Furthermore registered farmers must complete face, biometric, or OTP-based eKYC validation to prevent account suspensions.There is a clear cut exclusion criteria ,where Institutional landholders, income tax payers, government employees, and professionals are excluded. Application forms are processed through automated online routing or local Common Service Centres (CSCs)(My scheme portal,2026)
Performance
- Total Financial Disbursal & Installment Milestones
The government has transferred over ₹4.46 lakh crore directly into the bank accounts of farmers since the scheme’s launch in 2019. (PIB,2026).The 23rd installment of the PM-KISAN scheme was officially released on June 20, 2026. During this specific tranche, an amount exceeding ₹18,880 crore was disbursed.To ensure continued performance, the Union Cabinet extended the scheme from 2026–27 to 2030–31 with a dedicated financial outlay of ₹3.15 lakh crore.
- Beneficiary Coverage & Inclusivity
The latest 23rd installment cycle successfully covered over 9.44 crore eligible farmer families across India.The scheme displays high performance in gender inclusivity, with over 2.18 crore women farmers receiving direct financial assistance during the June 2026 cycle. 1 in 4 beneficiaries are women, who have cumulatively received over ₹1.06 lakh crore
( Ministry of Agriculture & Farmers Welfare)
3 .Period-Wise Beneficiary Trends
Source: PIB
4. Socio-Economic Impact Evaluations
Independent studies and government assessments, including evaluations by the NITI Aayog and the International Food Policy Research Institute (IFPRI), indicate strong scheme performance regarding utilization.Official documentation from the Union Outcome Budget targets that 75% of beneficiaries utilize this direct cash support specifically to purchase high-quality agricultural inputs like seeds, fertilizers, and equipment. ( Union budget,2025-26).The assured liquidity provided right before the crop-sowing seasons has successfully reduced small landholders’ dependency on informal, high-interest local moneylenders.(pib,2026).
Impact
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme has created significant positive impacts on farm productivity, rural cash flow, and household financial stability by transferring ₹6,000 annually directly into farmers’ bank accounts. The main impact was in the sector of agriculture investment .More than 92% of beneficiary farmers use the financial support to buy essential farm inputs like seeds, fertilizers, pesticides, and irrigation equipment.(PIB , 2026).
Around 85% of beneficiaries report a lower reliance on high-interest local money lenders during medical emergencies or crop failures.Beyond farming, families use the funds for household needs, education, and medical costs. Studies show positive growth in overall crop yields and technical efficiency.(PIB,2026).Digital infrastructure and Aadhaar-seeded accounts ensure money reaches beneficiaries safely without middlemen. Over ₹4.27 lakh crore has been disbursed across 22 installments(PIB,2026).An independent study conducted by the International Food Policy Research Institute (IFPRI) in 2019 analyzed that the funds provided under PM-KISAN have significantly contributed to rural economic growth, alleviated credit constraints, and increased investments in agricultural inputs. Additionally, the funds have improved farmers’ risk-taking capacity, enabling them to make productive yet riskier investments.
Further, considering the large beneficiary base of the scheme, to promptly address the general queries and grievances raised by the beneficiaries, a voice-based PM-KISAN AI Chatbot (Kisan e-Mitra) was developed. This Chatbot provides quick, accurate, and clear responses to farmers’ queries round the clock in their native languages, making the system more accessible and user-friendly. It is accessible on all platforms such as web, mobile, etc. The Kisan eMitra Chatbot currently operates in 11 languages namely,English, Hindi, Odia, Tamil,Bengali, Malayalam, Gujarati, Punjabi, Kannada, Telugu, and Marathi. So far, over 95 lakh queries of more than 53 lakh farmers have been addressed. This chatbot also provides information about farmer’s beneficiary status and payment details.(PIB,2026)
Emerging issues
The PM-KISAN scheme faces several critical operational, technological, and fiscal emerging issues that complicate its rollout.The main bottle neck is Mandatory e-KYC and Digital Illiteracy,With compliance updates like mandatory e-KYC verification, face authentication, and Aadhaar-seeded requirements, a significant portion of rural farmers face procedural hurdles. Poor internet penetration and digital illiteracy lead to delayed or blocked installments.Mismatches between the database names, bank details, and digitized land records frequently cause Fund Transfer Order (FTO) rejections.
The government is trying to link PM-KISAN to the broader “AgriStack” ecosystem. However, the immediate rollout has caused systemic delays as states rush to clean up outdated land registries and verify new digital Farmer IDs.Because eligibility relies strictly on official land registration entries, the scheme continuously excludes landless agricultural laborers, tenant farmers, and sharecroppers. In certain agricultural states, these landless workers make up 30% to 40% of the active workforce but receive zero direct support.Despite technological barriers , instances of system manipulation,such as using fake documentation, multiple family members claiming funds, or using public domain Aadhaar data,have forced the government to freeze thousands of accounts for physical verification checks.
Way forward
A well established comprehensive strategy must be developed to address the structural issues associated with PM-KISAN to optimize its impact.
This includes the creation of a unified digital portal that seamlessly sync state land registries with the National Payments Corporation of India (NPCI) mapper, thereby eliminating account mismatches, while simultaneously organizing grassroots e-KYC camps via Common Service Centres (CSCs) to aid digitally isolated farmers. The Inclusion of Tenant Farmers can encourage states to formalize and digitize tenant farmer and landless labourer contracts so that non-landowning cultivators who face real agrarian distress are not left out.
Reduce frequent procedural changes between portal-based and Aadhaar-based systems that cause confusion for farmers in remote areas with limited internet access. Local assistance through Common Service Centres (CSCs) and tools like the Kisan-eMitra AI chatbot should be actively scaled.Use PM-KISAN as an immediate liquidity safety net while prioritizing parallel improvements in agricultural credit, crop insurance, and extension/advisory Inclusion of all these can reduce the hazards associated with the scheme.
References
1)Press Information Bureau. (2024, October 5). Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Ministry of Agriculture & Farmers Welfare, Government of India
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=153249&ModuleId=3
2)Press Information Bureau. (2026, June 20). 23rd instalment of PM-KISAN. Ministry of Agriculture & Farmers Welfare, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2275744®=48&lang=2
3)Ministry of Agriculture and Farmers Welfare. (2026). Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Government of India.
About The Contributor
The author is a postgraduate student of Political Science at Madras Christian College, Chennai.Her academic interests spanning International Relations, Diplomacy, International Political Economy, South Asian politics, Public Policy, Gender Studies, Climate Politics, Human Rights, Global Governance, and History.She is currently a research intern at IMPRI, New Delhi.
Acknowledgments
The author extends her sincere gratitude to the IMPRI team and,Ameya Satam valuable guidance throughout the process
Disclaimer
All views expressed in the article belong solely to the author and do not necessarily represent the views or policies of the organisation.
