From PM-KISAN to MISS: 5 Government Schemes For Farmers’ Welfare

The Indian government has introduced various welfare programs to ensure the financial stability of farmers and foster agricultural growth throughout the country. In 2025, farmers are set to receive support from the government to purchase and utilise advanced agricultural equipment such as harvester machines, rice planting machines, potato planters, combined harvesters, and more. In this read, we will explore the 5 top farmer welfare schemes in India:

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Launched on Feb 29, 2019, PM-KISAN is a central sector scheme which supplements the financial needs of land-holding farmers, subject to exclusions. Under the scheme, the government provides financial support of ₹6,000 per year. The amount is transferred in 3 equal four-monthly instalments into the bank accounts of eligible farmers’ families across the country, via Direct Benefit Transfer (DBT) mode.

Recently on Feb 24, 2025, Prime Minister Narendra Modi transferred PM-KISAN 19th installment into farmers’ accounts.

Pradhan Mantri Kisan Maandhan Yojna (PMKMY) 

Launched on September 12, 2019, PMKMY is a central sector scheme designed to provide social security to the most vulnerable farming families. It is a contributory scheme where small and marginal farmers (SMFs), subject to certain exclusion criteria, can join by paying a monthly subscription to the Pension Fund. The Central Government also contributes to the fund.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Introduced in 2016, PMFBY offers an affordable and simple crop insurance product, providing farmers with comprehensive risk coverage against unavoidable natural disasters from pre-sowing to post-harvest. The scheme ensures adequate claim amounts and is demand-driven, making it available to all farmers.

Modified Interest Subvention Scheme (MISS)

The Interest Subvention Scheme (ISS) provides concessional short-term agricultural loans to farmers engaged in crop husbandry and allied activities such as animal husbandry, dairying, and fisheries. Farmers can avail of short-term crop loans up to ₹3.00 lakh at an interest rate of 7% per annum for one year. An additional 3% subvention is granted for timely loan repayment, reducing the effective interest rate to 4% per annum.

Formation & Promotion of New 10,000 FPOs

In 2020, the Government of India launched the Central Sector Scheme (CSS) for the “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” with a total budget of ₹6,865 crores. This initiative is executed through Implementing Agencies (IAs), which work with Cluster-Based Business Organizations (CBBOs) to form and provide professional support to FPOs for a period of 5 years

Conclusion

The Indian government has demonstrated a strong commitment to improving the financial stability and welfare of farmers through a range of targeted schemes. From providing direct financial support via PM-KISAN to offering social security under PMKMY, the government is addressing the varied needs of farmers, particularly small and marginal ones.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.