Lede: NEW DELHI – In his first official act after being sworn in for a third term, Indian Prime Minister Narendra Modi authorized the release of over ₹20,500 crore (approximately $2.45 billion) in a significant PM-KISAN Boost for the nation’s farmers. The funds, part of the 17th installment of a flagship welfare program, are being transferred directly to more than 92.6 million agricultural families across the country, underscoring the new government’s focus on the rural economy.
PM Modi Unleashes Rs 20,500 Crore PM-KISAN Boost
| Key Fact | Detail / Statistic |
| Total Amount Disbursed | Over ₹20,500 Crore (~$2.45 Billion USD) Press Information Bureau, Govt. of India |
| Total Beneficiaries | More than 9.26 Crore (92.6 Million) Farmer Families |
| Scheme’s Annual Support | ₹6,000 (~$72 USD) per eligible farmer, paid in three installments PM-KISAN Scheme Guidelines |
| Political Significance | First major decision of Prime Minister Modi’s third term in office |
A Signal of Agricultural Priority
The decision to release the funds was announced shortly after Prime Minister Narendra Modi assumed office, highlighting his administration’s continued commitment to agricultural support. The disbursement ceremony took place in Varanasi, Modi’s parliamentary constituency, where he addressed farmers and agricultural community workers.
“Ours is a government fully committed to farmer welfare,” Modi stated at the event. “It is therefore fitting that the first file signed on taking charge is related to farmer welfare. We want to keep working even more for the farmers and the agriculture sector in the times to come.”
The program, known as the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), is a cornerstone of the government’s social safety net. It utilizes a direct benefit transfer (DBT) system, which deposits funds directly into the bank accounts of verified beneficiaries, a method aimed at reducing corruption and ensuring aid reaches its intended recipients efficiently.
Spotlight on Odisha Farmers
This latest installment holds particular importance for Odisha farmers. Following the recent state elections, a new government led by the Bharatiya Janata Party (BJP), the same party as PM Modi, took power in Odisha for the first time. The new state administration moved quickly to facilitate the central government’s scheme.
During its campaign, the BJP had criticized the previous Biju Janata Dal (BJD) government for alleged delays and inefficiencies in implementing the central program, favoring its own state-level scheme called KALIA (Krushak Assistance for Livelihood and Income Augmentation). While both programs aim to support farmers, the integration with the central PM-KISAN database was a point of political contention.
According to reports from the Press Trust of India, the new Odisha government has vowed to ensure all eligible farmers in the state receive their pending dues under the PM-KISAN scheme within 100 days. This PM-KISAN Boost is therefore seen as a fulfillment of a key electoral promise to the state’s large agricultural community.
Economic Impact and Expert Analysis
The PM-KISAN scheme provides eligible land-holding farmer families with an income support of ₹6,000 (approximately $72) per year, distributed in three equal installments of ₹2,000. While modest, this sum is intended to help farmers cover the costs of critical inputs like seeds, fertilizers, and equipment ahead of sowing seasons.
Economists offer varied perspectives on the long-term effectiveness of such cash transfers. “Direct income support like PM-KISAN is a crucial tool for alleviating immediate financial distress, especially for small and marginal farmers who are most vulnerable to market shocks and climate change,” said Dr. Avinash Kumar, an agricultural policy expert at a New Delhi-based think tank.
However, some experts argue that while beneficial, cash transfers do not address the systemic issues plaguing Indian agriculture. “These schemes are palliative, not curative,” Dr. Kumar added. “The core challenges remain structural: reforming agricultural markets, improving irrigation infrastructure, and ensuring farmers receive fair prices for their produce through robust Minimum Support Price (MSP) mechanisms.”
Since its inception in 2019, the PM-KISAN scheme has disbursed over ₹3.24 lakh crore (approximately $38.8 billion) to millions of farmers, according to government data.
Challenges in Implementation
Despite its scale, the scheme faces persistent challenges. The primary hurdle involves accurate identification and verification of beneficiaries. Issues such as outdated land records, tenancy disputes, and digital literacy gaps have led to the exclusion of some deserving farmers, including many landless agricultural laborers who are not covered by the program’s current eligibility criteria.
The government has stated it is continuously working to refine the beneficiary database using digital land records and Aadhaar, India’s biometric identification system, to improve targeting and minimize leakages.
The release of this latest PM-KISAN Boost comes at a critical time, just ahead of the Kharif (monsoon) sowing season across much of India. The funds are expected to provide a timely liquidity injection into the rural economy, potentially boosting demand for agricultural inputs and supporting rural consumption.
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FAQ
1. What is the PM-KISAN scheme? The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a central government scheme in India that provides direct income support to land-holding farmer families. It aims to supplement their financial needs for procuring various inputs related to agriculture.
2. Who is eligible for the PM-KISAN boost? All land-holding farmer families who meet the eligibility criteria outlined by the government can benefit. The scheme has certain exclusion criteria, such as institutional landholders and farmers in higher income brackets. Landless agricultural laborers are currently not eligible.
3. How much money do farmers receive? Eligible farmers receive ₹6,000 per year, paid in three separate installments of ₹2,000 each. The funds are sent directly to their bank accounts via the Direct Benefit Transfer (DBT) system.
4. Why is the focus on Odisha farmers significant in this installment? The recent change in the state government of Odisha to one led by the BJP, the same party as the central government, has accelerated the implementation of the PM-KISAN scheme in the state. The new administration has prioritized clearing pending payments and enrolling eligible farmers who may have been left out previously.
