Centre Unveils Landmark Pradhan Mantri Kisan Samriddhi Yojana to Revolutionise Agriculture

New Delhi, Delhi – In a move poised to reshape the future of Indian agriculture, the Union government today unveiled the Pradhan Mantri Kisan Samriddhi Yojana (PMKSY), a sweeping new policy package designed to significantly boost farmer incomes, streamline market access, and fortify agricultural infrastructure across the nation. With an ambitious outlay of ₹5.5 lakh crore over the next five years, the scheme promises a paradigm shift for millions of farmers, particularly the small and marginal landholders who form the backbone of the country's agrarian economy. The announcement, made by Smt. Aparna Rao, Union Minister for Agriculture and Farmers' Welfare, during a press briefing at Krishi Bhawan, marks a concerted effort to address long-standing challenges of profitability, market linkages, and post-harvest losses.

Key points * **Enhanced Direct Income Support:** Substantially increases the existing PM-KISAN benefits and introduces performance-linked incentives for sustainable farming practices. * **Market Integration and Price Assurance:** Establishes a nationwide electronic trading platform (e-NAM 2.0) and a Price Volatility Management Fund to protect farmers from market fluctuations. * **Robust Agri-Infrastructure Fund:** Allocates significant capital for developing cold chains, warehouses, food processing units, and last-mile connectivity. * **Credit and Insurance Reform:** Simplifies access to institutional credit, extends interest subvention, and introduces a more farmer-friendly crop insurance model. * **Focus on Diversification and Technology:** Promotes crop diversification, organic farming, and adoption of modern agricultural technologies through dedicated research and extension services.

**Reported detail** The Pradhan Mantri Kisan Samriddhi Yojana (PMKSY) is structured around three core pillars: income augmentation, market empowerment, and infrastructure development. The first pillar significantly upgrades the existing PM-KISAN scheme, raising the annual direct income support from ₹6,000 to ₹10,000 for all eligible landholding farmer families. Crucially, a new performance-linked incentive component will reward farmers adopting water-saving irrigation techniques, crop diversification away from water-intensive crops, and organic farming practices, with an additional annual payout of up to ₹2,000 per acre. This aims to nudge farmers towards more sustainable and economically viable agricultural methods.

Under the market empowerment pillar, the government plans to roll out e-NAM 2.0, an advanced electronic national agricultural market platform that will integrate over 2,000 mandis nationwide within two years, up from the current 1,361. This platform will offer enhanced transparency, real-time price discovery, and direct payment mechanisms, reducing intermediaries. A dedicated Price Volatility Management Fund, with an initial corpus of ₹50,000 crore, will provide a safety net for farmers against sudden price crashes in key commodities, ensuring a minimum remunerative price even during bumper harvests or global price shocks. Furthermore, the policy encourages the formation of 10,000 new Farmer Producer Organisations (FPOs) by 2027, with enhanced financial and technical support to collectively bargain for better prices and access larger markets.

The infrastructure development pillar focuses on a massive upgrade of post-harvest management and value addition facilities. A ₹2 lakh crore Agri-Infrastructure Fund will be operationalized to facilitate the creation of state-of-the-art cold storage facilities, primary processing centres, integrated pack-houses, and modern warehouses, particularly in rural and semi-urban areas. The government estimates that this investment could reduce post-harvest losses, currently pegged at 15-20% for various commodities, by at least 10 percentage points within five years, thereby adding an estimated ₹1.5 lakh crore annually to the agricultural economy. Special emphasis will be laid on improving last-mile connectivity from farms to mandis and processing units through the Pradhan Mantri Gram Sadak Yojana network.

"This scheme is not merely about providing subsidies; it's about empowering our farmers to become entrepreneurs, resilient to market vagaries and equipped with modern tools," stated Smt. Aparna Rao, Union Minister for Agriculture and Farmers' Welfare. "We envision a future where Indian agriculture is not just self-sufficient but a global powerhouse, driven by innovation and sustainable practices. The PMKSY is a testament to our commitment to 'Annadata' (food providers) and a strategic investment in India's food security and rural prosperity."

Dr. Rakesh Mohan, Director, Centre for Agricultural Policy Research (CAPR), commented on the potential impact: "The PMKSY attempts to address several critical bottlenecks simultaneously – income uncertainty, market fragmentation, and infrastructure deficit. The focus on FPOs and the Price Volatility Management Fund are particularly crucial. However, the success will heavily depend on effective implementation, ensuring that the benefits truly reach the small and marginal farmers, and that bureaucratic hurdles are minimized."

Shri Vijay Singh, President, Bhartiya Kisan Sangh, offered a cautious welcome. "While the increase in direct income support is a positive step, the real test lies in the market reforms. Farmers need assured procurement at remunerative prices, not just safety nets. We also need to see how the new e-NAM 2.0 handles disputes and ensures fair play for farmers against large buyers. We will be closely monitoring its rollout and ensuring farmer voices are heard."

Background Indian agriculture, employing nearly half of the nation's workforce, has long grappled with challenges of low productivity, fragmented landholdings, price volatility, and inadequate post-harvest infrastructure. Despite several government initiatives over the years, including direct income support through PM-KISAN and efforts to integrate markets via e-NAM, a significant portion of farmers continue to face economic distress. The Economic Survey 2022-23 highlighted that while agricultural growth has been resilient, there's an urgent need for structural reforms to diversify income sources, enhance climate resilience, and integrate farmers more effectively into the value chain. Past attempts at market reforms, such as the now-repealed farm laws, faced significant public opposition, underscoring the need for a consultative and inclusive approach to policy formulation. The PMKSY appears to be an attempt to incorporate lessons from these experiences, focusing on incremental but significant reforms with robust financial backing.

What it means For millions of small and marginal farmers, the PMKSY could translate into greater financial stability and reduced dependence on informal credit. The enhanced direct income support provides a crucial safety net, while the performance-linked incentives could encourage a shift towards more sustainable and profitable crops. The market reforms, if successfully implemented, promise greater bargaining power, reduced exploitation by middlemen, and better price realization. Consumers could also benefit from more efficient supply chains, potentially leading to stable food prices in the long run. The massive investment in infrastructure is expected to create numerous job opportunities in rural areas, both directly in construction and indirectly in value addition industries, fostering overall rural economic growth. The emphasis on FPOs could also empower farmers collectively, giving them a stronger voice in policy-making and market negotiations. The scheme also signals a clear shift towards an agriculture sector that is not just about production, but about market integration, value addition, and sustainability.

Reactions The announcement has elicited mixed but largely optimistic reactions from various stakeholders. The ruling coalition has hailed it as a "historic and transformative" step towards 'Kisan Kalyan' (farmer welfare). Opposition parties, while acknowledging some positive aspects like increased direct support, have raised concerns about the implementation modalities and the adequacy of the Price Volatility Management Fund, calling for more robust mechanisms to ensure Minimum Support Price (MSP) for all crops. Industry bodies, such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce & Industry (FICCI), have welcomed the infrastructure push, foreseeing significant investment opportunities in food processing and logistics. Environmental activists have cautiously applauded the incentives for sustainable farming, urging strict monitoring to prevent greenwashing. Farmer unions, while expressing relief over increased direct support, have reiterated their long-standing demand for a legally guaranteed MSP, suggesting that the current measures, while helpful, may not fully address their core concerns.

What happens next The immediate next steps involve the finalization of detailed operational guidelines for each component of the PMKSY, expected within the next three months. The Ministry of Agriculture and Farmers' Welfare will constitute a high-level monitoring committee, including representatives from farmer bodies and agricultural experts, to oversee the implementation process. States will play a crucial role in the scheme's success, particularly in facilitating land records updation for direct benefit transfers, setting up and integrating mandis with e-NAM 2.0, and supporting FPO formation. Pilot projects for the performance-linked incentives and the Price Volatility Management Fund are expected to commence in select districts by early next year, allowing for refinement before a nationwide rollout. The government has stressed its commitment to regular consultations with all stakeholders to ensure the scheme's objectives are met and any unforeseen challenges are promptly addressed. The first tranche of enhanced direct income support is anticipated to be disbursed within the next six months.