National Farmers’ Day: Key government schemes for farmers' welfare and their benefits
Farmers, the lifeblood of the nation and revered as 'Annadaata', are the foundation of India's prosperity. Their hard work not only feeds us but also empowers the rural economy. Every year, 23 December is celebrated as National Farmers' Day in India. Let us tell you that Farmers’ Day is celebrated to commemorate the birth anniversary of the country's fifth Prime Minister, Chaudhary Charan Singh. Chaudhary Charan Singh did important work for the welfare of farmers and emphasized rural issues.
India's agriculture employs about half of the country's population and contributes 17.7% to the gross domestic product (GDP). In 2023-24, the country set a record for grain production of 332.2 million tonnes, up from 329.7 million tonnes last year. This achievement is a testament to the hard work and dedication of farmers.
Farmers' roles are not limited to crop production. They are the mainstay of rural development, providing food security and maintaining the livelihoods of millions of people. Their hard work and innovation contribute significantly to India's economic and social development.
Government schemes for farmers
The government has launched several schemes to empower farmers and improve their living standards. These schemes aim to empower farmers with financial assistance, insurance, affordable loans and resources required for infrastructure development, sustainable agricultural practices and economic security. Some of the major schemes are as follows-
PM-Kisan Yojana
The PM-Kisan Yojana aims to meet the financial needs of landholder farmers across the country. Under this scheme, Rs 6,000 is transferred directly to the bank accounts of farmers in three equal, four-monthly installments through DBT mode. Since its launch, the Government of India has distributed an amount of more than Rs 3.46 lakh crore in 18 installments, benefiting more than 11 crore farmers. PM KISAN Yojana was launched on 24 February 2019.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Launched in 2016, Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to provide affordable crop insurance to farmers covering risks of natural adversities from pre-sowing to post-harvest stages, ensuring prompt and adequate compensation. Since its launch, the scheme has insured 68.85 crore farmer applications and disbursed claims worth Rs 1,65,966 crore.
Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)
PM-KMY provides security to vulnerable farmer families by offering monthly pension. Farmers aged between 18 and 40 years make monthly contributions to the scheme, which is matched by the government. Life Insurance Corporation (LIC) manages the pension fund. The scheme was launched on 12 September 2019.
Modified Interest Subsidy Scheme (MISS)
The Modified Interest Subsidy Scheme (MISS) provides concessional short-term agricultural credit with an interest rate of 7% on loan amounts up to Rs. 3.00 lakh, with an additional 3% subsidy for timely repayment, bringing the effective rate to 4%. Since 2014-15, institutional credit flow to agriculture has almost tripled from Rs. 8.5 lakh crore to Rs. 25.48 lakh crore by 2023-24. Disbursement of soft and concessional crop loans has more than doubled and interest subsidy through KCC has increased 2.4 times to Rs. 14,252 crores in 2023-24.
Kisan Credit Card (KCC)
The Kisan Credit Card (KCC) scheme, launched in 1998, provides farmers easy access to agricultural inputs and cash for their production needs. In February 2019, the Reserve Bank extended the KCC facility to animal husbandry and fisheries for working capital requirements. As of March 31, 2024, there are 7.75 crore active KCC accounts.
Agriculture Infrastructure Fund (AIF)
The Agriculture Infrastructure Fund (AIF) scheme launched in 2020 under the Aatmanirbhar Bharat package supports sustainable agriculture by funding infrastructure projects across India. It provides loans up to Rs 2 crore at a maximum interest rate of 9%, along with a 3% annual interest subsidy and reimbursement of credit guarantee charges for up to seven years, ensuring affordability for beneficiaries. As of November 24, 2024, Rs 51,448 crore has been sanctioned for 84,333 projects under AIF.
Other Notable Initiatives
Namo Drone Didi
The Namo Drone Didi scheme aims to empower 15,000 women self-help groups (SHGs) by providing drones for fertilizer and pesticide application and agricultural rental services. The scheme provides 80% central financial assistance for the cost of drones, accessories and ancillary charges, up to a maximum of Rs 8 lakh. As of 3 December 2024, Rs 141.41 crore has been released for farmer drone promotion.
Soil Health Card Scheme
Launched in 2015, the Soil Health Card Scheme aims to improve soil health and promote efficient fertilizer use. More than 24.60 crore cards have been issued since the inception of the scheme, of which 36.61 lakh cards have been generated in 2023-24. A strong laboratory network supports the scheme. To develop soil fertility maps, the government plans to test 5 crore soil samples by 2025-26.
Kisan Kavach
On December 17, 2024, Union Minister Dr. Jitendra Singh unveiled India's first anti-pesticide bodysuit Kisan Kavach, designed to protect farmers from the harmful effects of pesticides. This unprecedented innovation is a big step towards ensuring the safety of farmers and empowering the agricultural community through science and technology. The first batch of Kisan Kavach suits was also distributed to the farmers in this program, emphasizing the importance of safety of farmers.
Clean Plant Program
The Union Cabinet on August 9, 2024 approved the Clean Plant Program (CPP) with an outlay of Rs 1,765.67 crore. The CPP aims to increase the quality and productivity of horticultural crops by providing disease-free planting material, and spreading and adopting climate-resilient varieties with increased yield.
Digital Agriculture Mission
The Union Cabinet on September 2, 2024 approved the Digital Agriculture Mission with an outlay of Rs 2,817 crore, including the Centre's share of Rs 1,940 crore. The mission is conceived as a comprehensive scheme to support digital agriculture initiatives, including the creation of digital public infrastructure, implementation of Digital General Crop Estimate Survey (DGCES) and other IT initiatives by the Central Government, State Governments and academic and research institutions.
Credit Guarantee Scheme for CGS-NPF
The government of India launched the Credit Guarantee Scheme for e-NWR-based Pledge Financing (CGS-NPF) on 16th December 2024, providing a corpus of Rs. 1,000 crore. It aims to support post-harvest financing for farmers. Under the scheme, farmers can avail loans against the pledge of their produce stored in Warehousing Development and Regulatory Authority (WDRA) approved warehouses supported by electronic negotiable warehouse receipts (e-NWR).
National Mission on Edible Oil-Oilseeds
The Union Cabinet approved the National Mission on Edible Oil-Oilseeds (NMEO-Oilseeds) on 3.10.2024 with a total outlay of Rs. 10,103 crores. The mission aims to promote domestic oilseed production and achieve self-sufficiency in edible oils, which will be implemented for a period of seven years from 2024-25 to 2030-31.
National Mission on Natural Farming
The Union Cabinet approved the National Mission on Natural Farming (NMNF) as a standalone Centrally Sponsored Scheme on 25.11.2024. The total outlay of the scheme is Rs. 2,481 crores (Government of India share - Rs. 1,584 crores; State share - Rs. 897 crore). It is focusing on promoting chemical-free, natural farming practices across the country.