Top Agriculture Schemes by Government - Guide | Current Affairs for UPSC IAS Exam

Agriculture remains the mainstay of the Indian Economy despite the recent diversification carried out by the Central Government. With over 40% of the Indian population still directly dependent on the Agrarian Economy, it is important for the government to look after their welfare and safeguard their interest. Furthermore, these Agriculture schemes also help boost the agriculture industry and increase the income of farmers across the country. 

Due to the importance that is attached to the Agriculture Sector, it is also a very important part of India’s Political Economy and therefore is a pivotal part of the exam syllabus for UPSC Exams. To help IAS aspirants prepare for the upcoming exam, a complete list of important government agriculture schemes are provided below. The complete list of Top Government Schemes for the Agriculture Sector launched for Welfare of Farmers. These Schemes are an important part of the Current Affairs for UPSC IAS Exam Syllabus and should be studied by all aspirants. 

PM KISAN (Pradhan Mantri Kisan Samman Nidhi)

Launched in 2019 as part of the Interim Union Budget presented by the then Finance Ministry Piyush Goyal. The scheme came into action from December 2018 with annual cost outlay of ₹75,000 crore (equivalent to ₹790 billion or US$11 billion in 2020) per annum. 

• Full Name: Pradhan Mantri Kisan Samman Nidhi
• Dept / Ministry: Ministry of Agriculture and Farmers Welfare
• Objective:

• To provide income support to all landowning farmers’ families in the country.
• To supplement their financial needs for procuring various inputs related to agriculture and allied activities as well as domestic needs.
• Beneficiaries: All land holding eligible farmers (subject to the prevalent exclusion critreria)
• Features / Benefits: Financial Benefit of Rs 6000/- per family, payable in three instalments of Rs 2000 each every 4 months.

PMFBJ (Pradhan Mantri Fasal BimaYojana)

The Pradhan Mantri Fasal Bima Yojana is an insurance scheme launched by Prime Minister Narendra Modi in February 2016. The scheme was launched by incorporating features of two separate Government Schemes i.e. National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). The scheme aims to provide a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.

• Full Name: Pradhan Mantri Fasal Bima Yojana
• Dept / Ministry: Ministry of Agriculture and Farmers Welfare
• Objective:

• To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities,  pests & diseases
• To stabilize the income of farmers to ensure their continuance in farming
• To encourage farmers to adopt innovative and modern agricultural practices
• To ensure flow of credit to the agriculture sector
• Beneficiaries: All farmers growing notified crops in a notified area during the season who have insurable interest
• Features / Benefits
• Payment of Uniform Premium Rate to Farmers:

• Kharif crops: 2%
• Rabi crops: 1.5%
• Commercial & horticultural crops: 5%
• Balance premium will be paid by the govt. to provide full insured amount to the farmers against crop loss
• There is no upper limit on the government. subsidy. Even if the balance premium is 90%, it will be borne by the government.
• Risks Covered: Yield losses (standing crops, on notified area basis) due to non-preventable risks
• Risks such as: Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Risk due to flood, drought, dry spells, diseases are also covered.

AIF (Agriculture Infrastructure Fund)

The AIF or the Agriculture Infrastructure Fund is a Central Sector scheme that was launched in July 2020. As the name suggests, the scheme provides medium - long term debt financing facility for post-harvest management Infrastructure and community farming assets. The Fund has been launched for a duration of 10 years i.e. from FY2020 to FY2032. 

• Full Name: Agriculture Infrastructure Fund
• Dept / Ministry: Ministry of Agriculture and Farmers Welfare
• Sector: Central Sector Scheme
• Implementing Agency: Dept. of Agriculture, Cooperation & Framers Welfare
• Objective: provide a medium-long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
• Features:

• Rs.1 lakh crore will be provided for financing agriculture infrastructure projects for following activities:
• Supply chain services including e­marketing platforms
• Ware houses
• Silos
• Pack houses
• Assaying units
• Sorting & grading units
• Cold chains
• Logistics facilities
• Primary processing centers
• Ripening Chambers
• All loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crore for a maximum period of seven years.
• A credit guarantee coverage will be available for eligible borrowers from the scheme under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2crore.
• Beneficiaries:
• Primary Agricultural Credit Societies (PACS)
• Marketing Cooperative Societies
• Farmer Producers Organizations (FPOs)
• Self Help Group (SHG)
• Farmers
• Joint Liability Groups (JLG)
• Multipurpose Cooperative Societies
• Agri-entrepreneurs and Startups
• Aggregation Infrastructure Providers
• Central/State agency or Local Body sponsored PPP Project

PMKSY (Pradhan Mantri Krishi Sinchai Yojana)

Launched in 2015, the Pradhan Mantri Krishi Sinchai Yojana is a national-level mission that aims to improve farm productivity and ensure better utilization of the resources in the country. The scheme aims to enhance investment in irrigation facilities and expand cultivable area under irrigation.

• Full Name: Pradhan Mantri Krishi Sinchai Yojana
• Dept / Ministry: Ministry of Agriculture and Farmers Welfare
• Sector: Centrally Sponsored Scheme (75 : 25)/(90:10)
• Objective:

• Enhance the physical access of water on the farm and expand cultivable areas under assured irrigation(Har Khet ko pani).
• Improve on-farm water use efficiency to reduce wastage and inaease availability both in duration and extent.
• Enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop).
• Features:
• Accelerated Irrigation Benefit Programme (AIBP): faster completion of ongoing major & medium irrigation projects
• Har khet ko Pani: extending the coverage of irrigation.
• Per Drop More Crop: improve water-use efficency
• Watershed Development: effective management of runoff water & improved soil & moisture conservation activities.

AHIDF (Animal Husbandry Infrastructure Development Fund)

The AHIDF - Animal Husbandry Infrastructure Development Fund is managed by the Department of Animal Husbandry & Dairying under the Ministry of Fisheries, Animal Husbandry and Dairying. This central sector scheme aims to enhance investment in Dairy Processing, Meat Processing and Animal Feed Production units. 

• Full Name: Animal Husbandry Infrastructure Development Fund
• Dept / Ministry: Department of Animal Husbandry & Dairying {Ministry of Fisheries, Animal Husbandry and Dairying}
• Central Sector Scheme
• Objectives:

• Incentive investment in

• Dairy processing and product diversification infrastructure
• Meat processing and product diversification infrastructure
• Animal feed Plant
• Increased price realization for the producer
• Full fill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition
• Develop entrepreneurship and generate employment
• To promot exports and increase the export contribution in the milk and meat sector.
• Beneficiaries: Farmer Producer Organizations (FPOs), MSMEs, Section-8 Companies, Private Companies and Individual entrepreneurs
• Feature: Corpus of Rs. 15000 Crore

KCC (Kisan Credit Card)

Launched in 1998, the Kisan Credit Card is a model scheme prepared by the National Bank for Agriculture and Rural Development (NABARD) to offer immediate and timely credit support to farmers. Recently, the government launched Kisan Credit Card (KCC) saturation campaign through ATM-enabled RuPay debit card to offer KCC loans to farmers who have not been given such loans.

• Full Name: Kisan Credit Card
• Ministry of Finance
• Implementation by: Commerical Banks. RRBs, Small Finance Banks and Cooperatives
• Objectives: 

• To Provide adeqate and timely credit for the comprehenive credit requirements of farmers under single window for their cultivation and other needs as indicated below:

• To meet the short term credit requirements for Cultivation of crops
• Post harvest expenses
• Produce Marketing Loan
• Consumption requirements farmer household
• Working capital for maintence of farm assets, activities allied to agriculture, like dairy animals, inland fishery and also working capital required for floriculture, Horticulture etc.
• Short term Credit requirement of rearing of animals,birds, fish, shrimp, other aquatic organisms, capture of fish.
• Beneficiaries:
• All farmers-individuals/Joint borrowers who are owner cultivators.
• Tenant farmers, Oral lessees and Share Croppers etc.
• SHGs or Joint Liability Groups of farmers inculding tenant farmers, sharecroppers etc.,
• Groups inculding tenant farmers having owned/rented/leased sheds.
• Beneficiaries under KCC for Animal Husbandary and Fisheries
• Features:
• Lunched in 1998
• Scheme prepared by the National Bank for Agriculture & Rural Development (NABARD)

PMKMDY (Pradhan Kisan Mantri Maan Dhan Yojana)

Launched in 2019, the Pradhan Kisan Mantri Maan Dhan Yojana  is a Central Sector scheme aimed at providing social security to Small and Marginal Farmers in their old age. Under this voluntary pension scheme, the government aims to provide a monthly pension of Rs 3000/- per month subject to certain exclusion criteria, on attaining the age of 60 years.

• Full Name: Pradhan Mantri Maan Dhan Yojana
• Department: Ministry of Agriculture & Farmers Welfare

• Central Sector Scheme

• Beneficiary Eligibility:
• Small and Marginal Framers of age between 18-40 years.
• Benefits:
• Minimum assured pension of Rs. 3000/- per month after attaining the age of 60 years.