The Pradhan Mantri Kisan Samman Nidhi, known as PM-KISAN, was initiated by the Indian government in 2019, with Uttar Pradesh being the first state to implement the programme. Prime Minister Narendra Modi inaugurated the scheme in Gorakhpur on February 24, 2019, aiming to provide direct income support to eligible farmer families owning land. Currently, Uttar Pradesh stands as the largest recipient of this initiative, with recent data showing that it serves over 2.2 crore farmers.

On June 20, 2026, the 23rd instalment was disbursed, amounting to a total of Rs 4,352 crore specifically for farmers in Uttar Pradesh. This entire scheme has facilitated the transfer of funds exceeding Rs 4.46 lakh crore nationally since its inception, supporting about 9.44 crore farmer families across India.

Mechanics of PM-KISAN

PM-KISAN operates as a Central Sector Scheme, with complete financial backing from the Government of India. Under this programme, qualifying landholding farmer families are eligible to receive Rs 6,000 annually, distributed in three instalments of Rs 2,000 each. These funds are directly deposited into the farmers’ bank accounts through the Direct Benefit Transfer (DBT) system.

To be eligible, farmers must comply with specific requirements, which include having their land records registered on the PM-KISAN portal, linking their bank accounts to their Aadhaar numbers, and fulfilling e-KYC verification. The scheme aims to assist farmers in managing agricultural costs and providing for household necessities, with its continuation from the 2026-27 to 2030-31 cycle backed by an allocated budget of Rs 3.15 lakh crore.

The extensive participation of farmers further highlights the critical role that small and marginal farmers play within Uttar Pradesh’s agricultural landscape. Research conducted by the Agro-Economic Research Centre at the University of Allahabad indicates that a significant number of beneficiaries possess landholdings of less than two hectares, further underlining the importance of targeted financial support.

Utilisation of Funds by Farmers

A study by the Agro-Economic Research Centre in 2022, commissioned by the Ministry of Agriculture and Farmers Welfare, evaluated the effects of PM-KISAN on farm income among beneficiaries in Uttar Pradesh. It revealed that the funds are primarily allocated towards various agricultural expenses, including costs for ploughing, fertilisers, and seeds.

Additionally, the study found that farms belonging to PM-KISAN beneficiaries often experienced higher crop yields compared to those that were not part of the scheme. Specifically, paddy yields were approximately 3.08 per cent higher, while wheat yields increased by about 1.93 per cent. Beneficiaries also reported an average net farm income rise of 9.85 per cent, suggesting that regular cash infusions can alleviate some financial pressures faced by farmers during the agricultural cycle.

However, it is important to note that, while the Rs 6,000 annual payment offers support, it does not cover the total costs of cultivation. The weighted A2 cost, reflective of the expenses incurred by farmers, is estimated at around Rs 9,500 per acre, emphasising that PM-KISAN is designed primarily for income support, rather than fulfilling the complete funding needs of farming activities.

Complementary Support Beyond Cash Transfers

In addition to the direct cash transfers, PM-KISAN aligns with other institutional supports accessible to farmers. Beneficiaries have the opportunity to apply for Kisan Credit Cards (KCC), enabling them to secure short-term agricultural loans at subsidised interest rates. This initiative aims to alleviate liquidity challenges that often compel farmers to seek informal credit sources for agricultural expenditures.

The government asserts that the immediate funds from PM-KISAN facilitate timely investments in essential agricultural inputs such as seeds, fertilisers, irrigation, and machinery. A NITI Aayog evaluation indicated that over 92 per cent of beneficiaries confirmed using this financial assistance for agricultural purposes and investment.

Despite the relatively modest amount of Rs 6,000 annually, the programme’s reach and regular fund flow significantly impact millions of farming households in Uttar Pradesh. With the government’s recent approval extending the programme until 2030-31, eligible farmers will continue to receive the Rs 2,000 instalments, thus sustaining financial support while ensuring compliance with verification processes.

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