Agricultural Schemes in India: List and Importance for UPSC

Agricultural Schemes in India play an important role in improving agricultural productivity, strengthening rural livelihoods, and supporting farmers across the country. Agriculture remains one of the most important sectors of the Indian economy and provides livelihood opportunities to a large section of the population.

To address challenges related to income, irrigation, crop losses, market access, infrastructure, and sustainable farming, the Government of India has introduced several schemes over the years. These initiatives focus on financial assistance, crop insurance, agricultural infrastructure, technology adoption, and market reforms.

This topic of ‘Agricultural Schemes in India’ is important from the perspective of the UPSC IAS Examination, particularly under General Studies Paper II (Government Policies) and General Studies Paper III (Agriculture and Economy).

Why Are Agricultural Schemes Important?

Agricultural development requires support in multiple areas. Farmers often face challenges related to weather conditions, rising input costs, market fluctuations, and limited access to technology.

Major objectives of these schemes include:

• Increasing farm income

• Improving irrigation coverage

• Promoting sustainable agriculture

• Providing crop insurance protection

• Expanding agricultural infrastructure

• Encouraging farmer collectives

• Improving market access

• Supporting digital agriculture

List of Major Agricultural Schemes in India

The table below lists the major schemes run by the Department of Agriculture and Farmers' Welfare:

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

The PM Kisan Scheme was launched on 24th February 2019. It is a Central Sector Scheme designed to provide direct income support to landholding farmer families. Under this scheme, Rs. 6,000 per year is transferred in three equal installments of Rs. 2,000 each. The money is sent directly to farmers' bank accounts through Direct Benefit Transfer (DBT).

• Key Achievement: As of early 2024, Rs. 2.81 lakh crore has been disbursed to more than 11 crore beneficiaries across India.

• Why it Matters: This is one of the most significant Farmer Support Programs in independent India. It ensures that even small and marginal farmers get financial help without any middlemen.

2. Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

PM-KMY was launched on 12th September 2019. It is a pension scheme for small and marginal farmers. Farmers between the ages of 18 and 40 can enroll. They contribute Rs. 55 to Rs. 200 per month, depending on their age. The Central Government contributes an equal amount. Once the farmer reaches 60 years of age, they receive a monthly pension of Rs. 3,000.

As of 2024, 23.38 lakh farmers have enrolled in this scheme. The Life Insurance Corporation (LIC) manages the pension fund. This is one of the most important Farmer Welfare Schemes aimed at social security in old age.

3. Pradhan Mantri Fasal Bima Yojana (PMFBY)

PMFBY was launched in 2016. It is the country's flagship Crop Insurance Scheme. It provides affordable and comprehensive crop insurance to all farmers. The coverage begins from pre-sowing and extends to post-harvest. It protects farmers against all types of non-preventable natural risks.

Key Achievement: Since 2016-17, over 5,549 lakh farmer applications have been covered. Claims worth Rs. 1,50,589 crore have been paid out.

PMFBY is important under the Agriculture Schemes UPSC syllabus as it directly addresses the vulnerability of Indian farmers to natural disasters.

4. Modified Interest Subvention Scheme (MISS)

This scheme provides short-term agricultural loans at a concessional rate of 7% per annum. Farmers who repay promptly receive an additional 3% subvention. This brings the effective interest rate down to just 4% per annum. The scheme covers crop loans up to Rs. 3 lakh and also extends to post-harvest loans through Kisan Credit Cards (KCC).

As of January 2024, 465.42 lakh new KCC applications have been sanctioned. This is one of the most important Agriculture Subsidy Schemes for Indian farmers.

5. Agriculture Infrastructure Fund (AIF)

AIF was launched under the Atmanirbhar Bharat Package. It provides medium to long-term financing for post-harvest infrastructure such as cold storage, warehouses, and processing units. A total fund of Rs. 1 lakh crore is available. Loans come with a 3% interest subvention and credit guarantee support.

Beneficiaries include farmers, FPOs, cooperatives, SHGs, start-ups, and APMC mandis. As of December 2023, Rs. 33,209 crore has been sanctioned for 44,912 projects. This scheme is central to the Agriculture Development Schemes aimed at reducing post-harvest losses.

6. Formation and Promotion of 10,000 FPOs

The Government launched this Central Sector Scheme in 2020 with a budget of Rs. 6,865 crore. It aims to form 10,000 Farmer-Producer Organizations (FPOs). Each FPO can receive financial assistance of up to Rs. 18 lakh for three years. Equity grants and credit guarantees are also available.

FPOs are also linked to the e-NAM (National Agriculture Market) portal. This allows them to sell their produce digitally through transparent price discovery. As of December 2023, 7,774 FPOs have been registered.

7. e-NAM – National Agriculture Market

e-NAM is a pan-India electronic trading portal that connects existing APMC mandis into a unified national market. It was integrated into the Integrated Scheme for Agriculture Marketing (ISAM). As of 2024, 1,389 mandis across 23 states and 4 Union Territories are connected to e-NAM.

Over 1.76 crore farmers and 2.5 lakh traders are registered on the platform. This is a major step in Agricultural Reforms for transparent and fair price discovery.

8. Soil Health Card Scheme

The Soil Health Card Scheme provides farmers with a card containing information about the nutrient status of their soil. It also gives recommendations on the right type and amount of fertilizer to apply. The scheme aims to reduce unnecessary use of chemical fertilizers and improve soil fertility.

The Government plans to conduct 5 crore soil sample tests across India between 2023-24 and 2025-26. A nationwide soil fertility map is being developed on a GIS platform. This is a key scheme under the government initiatives for Agriculture focused on sustainable farming.

9. Rashtriya Krishi Vikas Yojana (RKVY)

Rashtriya Krishi Vikas Yojana (RKVY-DPR) is a Centrally Sponsored Scheme that supports the creation of pre- and post-harvest infrastructure. It gives states the flexibility to design projects based on local farmers' needs. Since 2019-20, 1,524 agri-start-ups have been selected and Rs. 106.25 crore released as grants under the RKVY Agri-startup Programme.

10. Per Drop More Crop (PDMC) 

PDMC was launched in 2015-16 to promote micro-irrigation through drip and sprinkler systems. As part of broader irrigation schemes in India, this programme has covered 78 lakh hectares under micro-irrigation from 2015-16 to 2022-23.

It also supports small-scale water harvesting and storage. A Micro Irrigation Fund (MIF) of Rs. 5,000 crore (now being doubled to Rs. 10,000 crore) has been created with NABARD. States can borrow from this fund at 3% below the market rate.

This scheme directly contributes to PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) goals of "Har Khet Ko Pani" and "More Crop Per Drop."

11. Paramparagat Krishi Vikas Yojana (PKVY)

PKVY promotes organic farming without the use of chemical fertilizers or pesticides. Farmers are organized into clusters of 20 hectares each. A group of at least 20 farmers forms one cluster.

The scheme provides Rs. 31,500 per hectare to states. Of this, Rs. 15,000 is transferred directly to farmers through DBT. This is a notable scheme under Agriculture Policies in India focused on ecological sustainability.

12. Namo Drone Didi

This scheme was approved for 2024-25 to 2025-26 with an outlay of Rs. 1,261 crore. It provides drones to 15,000 selected Women Self-Help Groups (SHGs). These drones are used for applying fertilizers and pesticides on farms.

The Central Government provides 80% financial assistance, up to Rs. 8 lakh per SHG. Women SHGs can earn an additional income of at least Rs. 1 lakh per year. This scheme promotes National Agriculture Schemes that empower women in rural areas.

13. Sub-Mission on Agriculture Mechanization (SMAM)

SMAM has been implemented since April 2014. It promotes the use of machinery and technology in farming. Focus is given to small and marginal farmers and regions with low farm power availability.

Under this scheme, over 15.75 lakh agricultural machines have been distributed, and 23,472 Custom Hiring Centres have been established. It also covers drone technology under a special component called "Kisan Drone Promotion."

14. National Food Security Mission (NFSM)

NFSM aims to increase the production of rice, wheat, pulses, coarse cereals, and nutri-cereals across 28 states and 2 UTs.

With the declaration of the International Year of Millets 2023, India took a proactive role. Millet missions have been launched across 13 states. Over 500 start-ups and 350 FPOs are now active in the millet ecosystem.

15. Digital Agriculture Initiative

The Digital Agriculture initiative seeks to build a digital public infrastructure for agriculture. It will be open-source and interoperable. It includes:

• Farmers Database (Farmers ID linked with land records)

• Geo-referencing of agricultural plots

• Crop survey and soil mapping

• Unified Farmers Service Interface

This initiative is part of a broader effort to modernize Government Schemes for Farmers using technology and data-driven governance.

UPSC Previous Year Questions

UPSC Mains 2016

Q. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (150 words, 10 marks)

UPSC Mains 2013

Q. What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it. (200 words, 10 marks)

These Agricultural Schemes in India cover areas such as credit, insurance, technology, mechanization, irrigation, and organic farming. Together, they reflect the Government of India's commitment to doubling farmers' income and ensuring food security.