Overview of Major Agricultural Programs and Schemes in India

India’s agricultural sector supports the livelihoods of nearly 60% of its population, yet farmers continue to face challenges ranging from uncertain rainfall and rising input costs to poor market access and lack of social security. To address these challenges systematically, the Government of India has designed a comprehensive set of programs and schemes – each targeting a specific pain point in the agricultural ecosystem. From soil health to crop insurance, from irrigation to organic farming, and from credit access to old-age pensions, these schemes collectively form a strong institutional safety net for India’s farming community.

Doubling farmers’ income: the overarching vision 🔗

The government’s commitment to doubling farmers’ income has served as the guiding policy framework for most agricultural schemes since 2016. The initiative focuses on seven sources of income growth: improved productivity, reduction in cost of cultivation, better prices for produce, remunerative prices through improved market access, non-farm income diversification, reduction of crop losses, and shift to high-value agriculture. All the schemes discussed below are aligned, in some way, to one or more of these income-growth pillars.

Soil health and sustainable farming 🔗

Soil Health Card Scheme 🔗

Healthy soil is the foundation of productive farming. Launched in 2015, the Soil Health Card (SHC) Scheme provides farmers with a report card that details the nutrient status of their soil and recommends appropriate doses of fertilizers and soil amendments. The Soil Health Card provides information to farmers on the soil nutrient status and recommends the appropriate dosage of nutrients to be applied for improving soil health and fertility. By following these recommendations, farmers avoid over-application of chemical fertilizers, which both reduces their input costs and protects the long-term health of the land.

National Mission for Sustainable Agriculture (NMSA) 🔗

The NMSA, launched in 2014, is the umbrella framework that drives climate-resilient and resource-efficient agriculture across India. NMSA implements strategies to make Indian agriculture more resilient to the changing climate. Several schemes under NMSA deal with adverse climate situations – the Per Drop More Crop scheme increases water-use efficiency through micro-irrigation technologies like drip and sprinkler systems, while the Rainfed Area Development scheme promotes Integrated Farming Systems for enhancing productivity and minimizing risks associated with climatic variability. NMSA also provides the institutional home for both the Soil Health Management scheme and the Paramparagat Krishi Vikas Yojana discussed below.

Paramparagat Krishi Vikas Yojana (PKVY) 🔗

Chemical-intensive farming has taken a toll on India’s soils and food quality. The Paramparagat Krishi Vikas Yojana (PKVY), launched in 2015, directly responds to this concern. PKVY aims to develop sustainable models of organic farming through a combination of traditional wisdom and modern science to ensure long-term soil fertility buildup, resource conservation, and climate change adaptation. It primarily aims to increase soil fertility and thereby helps in the production of healthy food through organic practices without the use of agrochemicals.

The scheme works through a cluster-based approach. Under PKVY, organic farming is promoted through the adoption of organic villages by cluster approach and PGS certification. Fifty or more farmers form a cluster with 50 acres of land to practice organic farming together. In this way, 10,000 clusters covering 5.0 lakh acres are targeted to be formed over three years. Under PKVY, assistance of ₹31,500 per hectare over three years is provided, out of which ₹15,000 per hectare is provided directly to farmers through Direct Benefit Transfer for on-farm and off-farm organic inputs.

Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) 🔗

The northeastern states of India have historically practised low-input, chemical-free agriculture, making them naturally well-suited for organic certification. The MOVCDNER leverages this natural advantage by building end-to-end organic value chains specifically for these states. MOVCDNER is being implemented exclusively in the North Eastern states. Both PKVY and MOVCDNER stress end-to-end support for farmers engaged in organic farming – from production to processing, certification, and marketing. Under MOVCDNER, assistance of ₹46,500 per hectare over three years is provided for the creation of Farmer Producer Organizations and support for organic inputs. This higher financial support reflects the additional infrastructure investment required to develop value chains in a geographically challenging region.

Crop insurance and risk management 🔗

Pradhan Mantri Fasal Bima Yojana (PMFBY) 🔗

A single natural calamity – an unseasonal hailstorm, a drought, or a pest outbreak – can wipe out an entire season’s income. The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is the government’s flagship crop insurance program designed to protect farmers from such shocks. The PMFBY premium rate is 2% for kharif crops, 1.5% for rabi crops, and 5% for commercial crops. It covers losses from natural calamities, pests, and diseases. Remote sensing and drones are being used for faster claim assessments. In 2023-24, over 3.5 crore farmers were enrolled, covering 40 million hectares. The difference between the actual premium and the farmer’s contribution is shared equally by the Centre and State governments, making this one of the most affordable crop insurance products available to Indian farmers.

Weather Based Crop Insurance Scheme (WBCIS) 🔗

While PMFBY compensates for yield losses, the Weather Based Crop Insurance Scheme (WBCIS) works differently – it provides payouts when specific weather parameters (such as rainfall, temperature, or humidity) cross pre-defined thresholds, regardless of actual crop damage on the ground. This makes claim settlement faster and more objective, since it does not require field-level crop-cutting experiments. WBCIS operates as a complementary product alongside PMFBY and is particularly useful for crops that are highly sensitive to weather variations. Both schemes are implemented through empanelled insurance companies and administered by the Department of Agriculture and Farmers’ Welfare.

Water security and irrigation 🔗

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) 🔗

Water availability is among the most critical determinants of agricultural productivity in India, where a large portion of farmland still depends on rain-fed conditions. The Pradhan Mantri Krishi Sinchai Yojana (PMKSY), launched on 1 July 2015, directly addresses this challenge. PMKSY aims to improve irrigation coverage under the motto “Har Khet Ko Pani” and promote efficient water use through the principle of “More Crop per Drop.” Water conservation and management is the main focus of this scheme, which seeks an end-to-end solution related to water source creation, distribution, management, and field-level application. It combines earlier schemes like the Accelerated Irrigation Benefit Programme (AIBP), Integrated Watershed Management Programme (IWMP), and On-Farm Water Management (OFWM). The scheme specifically promotes micro-irrigation technologies – drip and sprinkler systems – that can significantly reduce water consumption while maintaining or even improving yields.

Credit access and financial inclusion 🔗

Kisan Credit Card (KCC) Loan Scheme 🔗

Access to affordable credit at the right time is essential for farmers to purchase seeds, fertilizers, and equipment. The Kisan Credit Card scheme aims to provide adequate and timely credit support from the banking system under a single window with flexible and simplified procedures for farmers’ cultivation needs and other requirements like post-harvest expenses and produce marketing. The scheme was introduced in 1998 for the issue of Kisan Credit Cards to farmers based on their landholdings, so that farmers may readily purchase agricultural inputs such as seeds, fertilizers, and pesticides, and draw cash for production needs. The KCC helps farmers avoid high-interest informal loans and ensures liquidity for inputs like seeds, fertilizers, and machinery. Banks do not seek security on loans up to ₹1.60 lakh, and the maximum loan available is ₹3 lakh over five years, with repayment tied to crop harvesting cycles.

Market access and fair pricing 🔗

National Agriculture Market (e-NAM) 🔗

Even when farmers produce a good harvest, fragmented and opaque local markets can prevent them from realizing a fair price. The National Agriculture Market (e-NAM) is a pan-India electronic trading portal that networks the existing APMC mandis to create a unified national market for agricultural commodities. It was launched on 14 April 2016, by the Ministry of Agriculture and Farmers’ Welfare. As of March 2023, there are 1,260 mandis onboarded on the e-NAM platform in 22 states and 3 union territories. The platform enables transparent, competitive price discovery – farmers can sell to buyers anywhere in India, eliminating their dependence on local middlemen and opening up a much larger buyer base.

Farmers’ welfare and social security 🔗

Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY) 🔗

Agricultural work is physically demanding, and many farmers have no formal mechanism for retirement savings. The Pradhan Mantri Kisan Maan Dhan Yojana, launched on 12 September 2019, addresses this gap by providing structured pension coverage. PM-KMY is a central sector scheme for farmers aged between 18 to 40 years. Beneficiaries are required to make a monthly contribution to the Pension Fund – between ₹55 to ₹200, depending on their age – with equal matching contribution by the Central Government. The scheme is managed by the Life Insurance Corporation of India (LIC). The scheme provides a pension of ₹3,000 per month after the farmer turns 60 years old. This affordable, government-matched structure makes retirement planning accessible even to small-scale farmers who may have no other savings mechanism.

How these schemes work together 🔗

Each scheme targets a distinct challenge – soil health, credit, insurance, water, markets, or retirement – but their real impact is amplified when they work in combination. A farmer could, for instance, use a Kisan Credit Card to finance inputs, apply fertilizers guided by her Soil Health Card, protect her crop with PMFBY, irrigate efficiently through PMKSY, sell her produce transparently on e-NAM, and simultaneously build a retirement corpus under PM-KMY. Together, these schemes aim to modernize agricultural practices, improve productivity, ensure sustainability, and enhance farmers’ income. Farmers who are aware of and actively enrolled in multiple schemes are better positioned to navigate both expected and unexpected challenges in their agricultural operations.

The Government of India continues to refine and expand this ecosystem. In October 2024, the Union Cabinet approved the rationalization of all centrally sponsored schemes operating under the Ministry of Agriculture into two umbrella schemes – Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY) – with a total proposed expenditure of ₹1,01,321.61 crore. PM-RKVY is designed to promote sustainable agriculture, while KY focuses on food security and agricultural self-sufficiency. This rationalization signals a move toward greater coherence and coordination in how agricultural support is delivered to farmers.

What do you think? With so many schemes available, what do you see as the biggest barrier preventing small and marginal farmers from actually accessing and benefiting from these programs? And among all the schemes discussed, which one do you believe has the greatest potential to transform the lives of Indian farmers in the next decade?

References

1. https://agriwelfare.gov.in/en/Major
2. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2151359
3. https://pmfby.gov.in/