Agriculture in India is prone to price and output fluctuations due to its reliance on the South-West monsoon. Farmers are the hardest hit. To address this, the Central Government Schemes for Farmers has established a variety of financial aid schemes to benefit farmers. These initiatives' overall purpose is to improve farmers' economic problems and rejuvenate the agriculture industry.
Top Central Government Schemes Supporting Farmers Financially
Agriculture, the backbone of India’s economy, is sustained by a range of central government schemes. These initiatives not only provide financial assistance but also offer security and stability to farmers' livelihoods. Some of the key schemes include:
Interest Subvention Scheme:
The Interest Subvention Scheme, initiated in 2015-16, ensures that farmers can access loans at a subsidized interest rate. Key highlights of the scheme are:
- 3% interest subvention on short-term crop loans up to INR 3 lakhs.
- Reduction of the prevailing interest rate to 4% on timely repayment.
- 2% interest subvention to banks on restructured loan amounts in the event of natural calamities.
- Small and marginal farmers holding Kisan Credit Cards (KCC) can avail of the scheme for an extended period of 6 months after the harvest.
Pradhan Mantri Kisan Man Dhan Yojana (PMKMDY):
Launched in 2019, PMKMDY focuses on providing social security and financial aid to small and marginal farmers during their retirement. Its key aspects include:
- Aiming to provide a minimum monthly pension of INR 3,000 to around 5 crore marginalized farmers after they turn 60.
- Eligibility criteria requiring entry age between 18 to 40 years and ownership of cultivable land up to 2 hectares.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):
PM-KISAN, effective from December 2018, provides direct income support to small and marginal farmers across India. Noteworthy features include:
- INR 6,000 per year financial assistance paid in three instalments of INR 2,000 each.
- Direct Benefit Transfer (DBT) of funds to beneficiaries' bank accounts.
- Document submission including Aadhaar cards, bank account details, landholding papers, and citizenship certificates.
Kisan Credit Card (KCC) Scheme:
The Kisan Credit Card (KCC) Scheme, introduced in 1998, ensures timely and adequate credit for farmers' short-term requirements. Salient features include:
- 2% interest subvention on loans and a 3% incentive on prompt repayment.
- Subsidized annual interest rate of 4% for various agricultural purposes including marketing loans, consumption needs, post-harvest expenses, and more.
Pradhan Mantri Fasal Bima Yojana (PMFBY):
Launched in 2016, PMFBY provides comprehensive crop insurance coverage against natural risks. Notable features include:
- Risk mitigation tools for farmers at low premium rates.
- Actuarial premium equally shared (50:50) by the Central and State Governments.
- Voluntary participation for states and mandatory for loanee farmers.
These central government schemes underscore the commitment to farmers' welfare, addressing their various challenges and fostering a more prosperous agricultural sector. To explore more about these schemes and tractor visit the website of TractorKarvan.
