Finance minister Nirmala Sitharaman in Budget 2024-25 is likely to increase the assistance under the PM Kisan Samman Nidhi scheme by ₹2,000 per annum which would take the per family cash transfer to ₹8,000.
This is expected to cost an additional ₹20,000 crore to the exchequer from the interim budget’s allocation ₹60,000 crore.
Farmers are provided financial assistance of ₹6,000 annually through three four-monthly installments under the scheme.
Farm leaders, sources said, during their pre-budget meeting with the finance minister pushed for hiking the installment amount to ₹8,000 per year from ₹6,000.
Economists said raising the benefit amount will assist in providing greater financial support to farmers, stabilising their income and tackling rising input costs in the farm sector.
They said putting money in the hands of the farmers would have multiplier effect and boost consumer demand.
Studies have shown that with an annual benefit of ₹6,000 distributed in three equal instalments, the scheme helped farmers meet essential agricultural expenses and avoid reliance on moneylenders.
This financial support has proven transformative, enabling farmers to invest
in equipment, seeds, fertilisers, pesticides and other agricultural inputs, thus enhancing crop yields, agricultural productivity and sustainability.
A study by the International Food Policy Research Institute (IFPRI) found that PM-KISAN beneficiaries in Uttar Pradesh received the full amount without leakage, significantly improving their ability to invest in agriculture. The infusion of over ₹3.24 lakh crore into rural economies has not only boosted farmers’ financial stability, it has
also stimulated local markets and services.
All small and marginal landholder farmer families consisting of husband, wife and minor children with cultivable landholding in their names are eligible. Institutional landholders and farmer families whose member/s have paid income tax in the last assessment year among others are not eligible under the scheme.
Along with additional sum, the government is also considering to extend the benefits to tenant farmers and sharecroppers.
