The Impact of Top Government Schemes on Marginal Farmers

The Impact of Top Government Schemes on Marginal Farmers India is an agricultural economy, with more than 86% of its farmers engaged in small and marginal farming. To boost the economic security of marginal farmers and help them overcome the hurdles like crop failure, climate changes, disasters, and declining market prices, the government of India has implemented various schemes and policies. These schemes have impacted the financial stability and market linkages of marginal farmers and resulted in substantial transformation within the Indian agricultural domain.


Prominent Government Schemes for Marginal Farmers

Although most of the agricultural schemes in India are meant for farmers as a whole, certain schemes have been introduced by the government, considering the challenges faced by small and marginal farmers. Some of the significant schemes introduced to support marginal farmers are given below:

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

    2. The government of India initiated the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) in 2018 to provide income support to farmers. It provides Rs. 6000/- per year, in three instalments of Rs.2000/-, to the farmers to meet expenses related to agriculture and other domestic needs.

  2. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)

    3. This scheme provides a minimum fixed pension of Rs.3,000/- per month to small and marginal landholder farmers, aged over 60 years, having cultivable land holding up to 2 hectares. This is a voluntary and contributory pension scheme that aims to provide social security for farmers during old age.

  3. Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme (RWBCIS)

    4. Considering the extreme, unpredictable weather conditions in India, the government came up with PradhanMantri Fasal Bima Yojana (PMFBY) in 2016 to provide a simple and affordable crop insurance system that covers all non-preventable natural risks. It facilitates:

    • risk mitigation
    • quick claim settlements
    • continuance in farming

  4. E-NAM

    5. E-NAM is a pan-India online trading platform launched in 2016 for trading agricultural commodities. It was initiated by the Small Farmers Agribusiness Consortium (SFAC) to reduce transaction costs and help farmers have easy access to markets.

  5. Kisan Credit Card (KCC)

    6. As most marginal farmers suffer from massive debts, the government introduced KCC that provides farm credit at a very subsidized rate of 4 per cent per annum. Farmers can avail of collateral-free loans from Rs. 1 lakh to Rs.1.60 lakh under a single window. These short term loans help farmers buy farming equipment and meet other financial requirements every year.


How are Agricultural Schemes transforming the lives of Marginal Farmers?

Various schemes introduced by the government of India over time have benefitted farmers in multiple ways. These agricultural schemes have been:

  • Supplementing the financial as well as agricultural needs of marginal farmers
  • Revitalizing agriculture, and
  • Introducing technological advancements within marginal farming practices

Thus, with improved agricultural schemes and widespread enactment of these schemes, marginal farmers can improve their status quo and enhance agricultural productivity tremendously. Our country is providing ample opportunities and financial assistance to farmers. It is high time to learn about them and improve our economy.

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