The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme from the financial years 2026-27 through 2030-31. The total financial allocation for this scheme during this period is set at Rs 3.15 lakh crore. This announcement was made during a Cabinet meeting held on July 31, 2026, in New Delhi.

Financial Assistance for Farmers

The PM-KISAN Scheme offers financial assistance to farmers in accordance with the crop cycle, providing income support of Rs 2,000 to be disbursed three times a year. This funding is intended to aid farmers in purchasing seeds, fertilisers, and other necessary agricultural supplies at the start of each crop cycle. The assistance is strategically timed to coincide with essential periods such as the Kharif sowing and harvest, as well as the preparation for the Rabi season.

Union Minister Ashwini Vaishnaw highlighted the benefits of the scheme during the meeting, noting that studies indicate that 85 per cent of participating farmers have reportedly reduced their borrowing due to the financial support provided. The PM-KISAN Scheme operates through the Direct Benefit Transfer (DBT) system, allowing timely and transparent transfers directly into farmers’ bank accounts.

Since its launch in February 2019, the PM-KISAN Scheme has delivered significant financial support to eligible landholding farmer families, amounting to Rs 6,000 annually. Payments are issued in three instalments, supported by Aadhaar authentication and digital verification, thereby promoting transparency and accountability.

Impact of PM-KISAN Scheme on Farmers

To date, over Rs 4.47 lakh crore has been disbursed directly into farmers’ accounts across 23 instalments, benefiting more than 9.49 crore farmers. The 23rd instalment alone released over Rs 18,984 crore. Notably, throughout the COVID-19 pandemic, the scheme has expended over Rs 1.71 lakh crore to support farmers during challenging times.

Women farmers have also seen substantial benefits, having received more than Rs 1.06 lakh crore under the PM-KISAN Scheme. Currently, nearly one in four beneficiaries of the scheme is a woman farmer, underscoring the programme’s commitment to inclusivity.

Independent evaluations conducted by organisations like the Development Monitoring and Evaluation Office (DMEO) of NITI Aayog have indicated that over 92 per cent of beneficiaries have utilised the funds for agricultural investments. Approximately 85 per cent of these beneficiaries reported improved agricultural income and a decreased reliance on informal credit, signalling the scheme’s positive impact on financial stability.

Future Prospects for PM-KISAN Scheme

The PM-KISAN Scheme has coincided with a notable increase in food grain production, with significant growth recorded from 2020-21 to 2025-26. During this timeframe, the area cultivated grew by about 9.65 per cent, productivity improved by approximately 10.53 per cent, and total food grain production rose by approximately 21.18 per cent. These figures reflect not only the support offered by the PM-KISAN Scheme but also enhanced capacities within the agriculture sector.

The government views the PM-KISAN Scheme as a crucial element of its farmer-centric policies, aimed at empowering millions of farmers and ensuring their pivotal role in the nation’s agricultural landscape. As the programme continues to expand, it is expected to further bolster farmers’ capabilities and advance the rural economy.

In summary, the PM-KISAN Scheme represents a significant initiative in India’s commitment to agricultural sustainability and farmer welfare, facilitating investments that strengthen productive capacities and improve rural livelihoods.

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