Top 27 Central Government Schemes for farmers in India

06 Apr, 2024

Are you looking for the best central government scheme in India? We’re here to help. Below, you will find the best 27 central government schemes in India that farmers can avail of to get some sort of financial help and ease down their farming journey. 

What is a Central Government Scheme?

A Central Government Scheme is a program or initiative that is implemented and supervised by a country's central government. These programs are usually intended to solve specific concerns, give advantages, or encourage growth in various sectors of the country's economy or society. 

The goals of central government schemes for farmers might vary greatly depending on the government's aims and policies. In India, they primarily aim to improve the infrastructure for farmers, enhance rural development, promote job creation in the agriculture industry, and provide sufficient funding to the farmers. 

Why are Government Schemes Necessary?

Government schemes can help farmers in India in more than one way. From providing financial support to reducing financial risk, the benefits of government schemes are many. 

TractorGyan presents you with a quick rundown of key government schemes' benefits. 

• Government schemes are necessary to provide better and sustainable livelihood to its citizens. With their help, farmers of lower-income groups can get capital to get started. 

• Schemes of government for farmers help the farming community in planning and organizing their farming activities prudently. Farmers get support, guidance, and professional assistance on farming that leads to quality production. 

• Government schemes are a safe way to get credit. They provide funds at an affordable interest rate and can help farmers to prevent debt traps.  

• Schemes offering crop insurance help farmers to reduce agricultural risks. They can claim the loss incurred due to flood, disease, or any sort of unforeseen circumstances. 

• Many schemes offer farm implements and equipment like rotavators, solar pumps, and many more at subsidized rates. With the help of subsidies, it’s easy for farms to buy modern farming tools and incorporate farm mechanization into their farming practices. 

Through some of the schemes, the government helps farmers develop supportive farming instructions at a reduced cost and with expert assistance. 

Top 9 Central Government Agriculture Schemes in India 

Below we have explained the top 9 fully-funded central government schemes, especially for the agricultural domain. 

#1- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

Pradhan Mantri Kisan Samman Nidhi or PM-KISAN is one of the most famous government-funded schemes that aims to provide ample income support to small and marginal farmers in India. It was launched in 2019 and aims to provide necessary funds to Indian farmers so that they can take care of basic farming needs. 

Benefits 

• The main objective of the scheme is to transfer an amount of INR 6000 to the account of farmers annually.

• This remuneration is paid in three equal installments of INR 2000 each every four months directly into the farmers’ account. 

Eligibility 

All the farmers owning up to two hectares, as per land records of States/UT, are eligible. 

Target Group

The primary beneficiaries are small and marginal land-holding farmer families. 

Where to Apply 

https://pmkisan.gov.in/

#2- Pradhan Mantri Kisan MaanDhan Yojana (PM-KMY)

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is a pension scheme launched by the Government of India. It operated under the Ministry of Labor and Employment. 

Benefits 

• It aims to ensure that farmers have a continual source of income even when they are not able to work in fields. 

• Eligible farmers will receive a pension of Rs. 3,000 per month after reaching 60 years old. 

• If the eligible farmer dies, the spouse is also eligible for a pension. 

Eligibility 

Applicable for small and marginal farmers with landholdings up to 2 hectares who are not enrolled in any other type of pension scheme. 

Target Group 

This scheme is especially for farmers between the age of 18-40 years. 

Where to Apply 

https://maandhan.in/

#3- Pradhan Mantri Fasal Bima Yojana (PMFBY)

Lose of crops is a major issue in India and it leads to farmer suicide as well. To address this issue, the central government launched Pradhan Mantri Fasal Bima Yojana (PMFBY) in the year 2016. 

It is a crop insurance-related agriculture scheme that attempts to offer farmers financial assistance and risk reduction in the event of crop loss or damage caused by natural disasters, pests, and diseases. It aims to guarantee the agricultural sector's overall stability and to shield farmers from financial hardship caused by crop losses.

Benefits 

• Under this government scheme for farmers in India all food crops, oilseeds, and annual commercial/horticultural crops are covered by the plan.

• It comprises hazards from pre-sowing to post-harvest, such as drought, floods, cyclones, pests, diseases, and so on.

• The farmer and the government split the cost of crop insurance premiums. Farmers' premiums are subsidized, making insurance more inexpensive and accessible.

Eligibility 

All the farmers who have been granted Seasonal Agricultural Operations (SAO) loans from financial institutions can apply. 

Target Audience 

Small-scale and marginal farmers 

Where to Apply 

https://www.pmfby.gov.in/

#4- Modified Interest Subvention Scheme (MISS)

Launched in 2006-07, the Modified Interest Subvention Scheme or MISS is another very famous central government scheme for Indian farmers that aims to provide short credits or loans at an affordable interest rate. It aims to reduce the farmer suicide rate in ID due to a lack of credit or high-interest rates. 

Benefits 

• Farmers can get a loan of up to INR 3 Lakhs at a reduced rate of 7%. 

• If farmers do prompt repayment, they can avail a 3% incentive. 

• It is also available for allied services such as Animal Husbandry, dairy, Poultry, and fisheries. 

Eligibility 

Every small-scale farmer engaged in farming and allied services can avail of this service. 

Target Audience 

All the small and marginal farmers of India. 

Where to Apply 

Farmers can apply for the Modified Interest Subvention Scheme (MISS) with the help of assigned Public Sector Banks, Private Sector Banks, Small Finance Banks, Regional Rural Banks, Cooperative Banks, and Computerized Primary Agricultural Credit Societies (PACS). 

#5- Agriculture Infrastructure Fund (AIF)

The Agriculture Infrastructure Fund or AIF is a Union Cabinet-approved centre government scheme launched in July 2020. With the help of this scheme, farmers can get medium to long-term farming loans for various needs such as post-harvest management and building infrastructure. 

Benefits 

• Farmers can get a loan of up to INR 2 crores for 7 years. 

• It offers an interest rate subvention of 3% on all the loans. 

• Beneficiaries also get a cap of 9% on ROI. 

Eligibility

Registered farmers involved in mushroom, vertical, hydroponic, and polyhouse farming. 

Target Audience

The scheme is available for farmers, joint liability groups, agri-entrepreneurs, self-help groups, and many more people engaged in farming. 

Where to Apply

https://agriinfra.dac.gov.in/Home/BeneficiaryRegistration

#6- Formation & Promotion of new 10,000 FPOs

The Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs) is a Central Sector Scheme launched by the Government of India and is managed by the National Bank for Agriculture and Rural Development (Nabard). The scheme aims to promote and support Farmer Produce Organisations with the help of nine recognized Implementing Agencies. 

Benefits 

• Interested farmers and organizations can get financial support, equity grants, and credit facilities. 

• It provides credit up to INR 18 Lakh per FPO for 3 years along with an equity grant of INR 2,000 per farmer member with a limit of 15.00 lakh per FPO.

• It also furnishes credit guarantee facilities of up to Rs. 2 crore per FPO

Eligibility

Registered FPOs can avail of this scheme. 

Target Audience

The scheme targets small and marginal farmers, farmer groups, cooperatives, and other entities involved in agriculture and allied activities. 

Where to Apply 

The scheme is accessible through the designated Implementing Agencies (IAs) such as SFAC, NCDC, NABARD, and others. 

#7- National Beekeeping and Honey Mission (NBHM) 

National Beekeeping and Honey Mission (NBHM) was launched by the Ministry of Agriculture and Farmers Welfare and aims to promote professional beekeeping in India. It’s a move to bring “Sweet Revolution" In India by providing adequate support and guidance to farmers engaged in beekeeping. 

Benefits

• Beneficiaries can get financial support, awareness about modern beekeeping techniques, subsidiaries, and market linkage. 

• It provides 100% financial assistance for the public sector and 50% of the total set-up cost up to INR 3 Lakh per project. 

• Assistance will be released in three installments of 50%, 25% & 25% of the total fund in three years. 

• Bee Breeders can get up to Rs. 5 lakhs/ per project. 

• INR 750 lakhs per IBDC is allotted for the development of regional research centres. 

• INR up to 800.00 lakhs per lab is awarded for the setting of testing labs and INR 100.00 lakhs per lab for the district-level testing lab. 

• INR 20,000/- per women-only group. 

Eligibility

Eligibility varies according to the category. For instance, Women groups should have a women workforce from SCs/ ST categories and bee breeders should be able to manage a minimum of 2000 quality bee colonies per year to avail of the applicable benefits. 

Target Audience

Farmers, FPOs, self-help groups, cooperatives, FPOs, and entrepreneurs involved in scientific beekeeping and related activities. 

Where to Apply

https://nbb.gov.in/default.html

#8- Market Intervention Scheme (MIS) and Price Support Scheme (PSS)

The Market Intervention Scheme (MIS) and Price Support Scheme (PSS) aim to provide farmers an opportunity to get a justified price for their crops. It’s applicable for perishable and horticultural commodities. 

Benefits 

• This scheme aims to provide the maximum possible price support system. 

• It provides income security for the farmers.  

• It covers crops like apple, garlic, malta, black pepper, ginger, red chillies, coriander seeds, and clove. 

Eligibility

• Eligibility for the Market Intervention Scheme (MIS) and Price Support Scheme (PSS) varies based on the specific scheme and guidance. 

• This applies when there is a minimum increase or decrease of 10% in the crop rates. 

Target Audience

Any farmer, grower, and producer of perishable and horticultural commodities is the target audience. 

#9- Namo Drone Didi

Lastly, we have the Namo Drone Didi scheme, an initiative launched by Prime Minister Narender Modi, that aims to empower women in Rural India. Under this scheme, the central government provides drones to the women involved in farming and helps them in agricultural activities like fertilizer spraying, seed sowing, and crop monitoring.

Benefits 

• A subsidy of 80% of total drone cost up to INR 8 Lakh is offered to Women SHGs

• A loan from AIF at an affordable interest rate of 3%. 

• Training to operate the drones. 

• Women SHGs can earn Rs. 1 Lakh per year with the help of drones. 

Eligibility

Active members of self-help groups are eligible. 

Target Audience

Women from Self Help Groups (SHGs) in rural areas. 

Where to Apply 

https://www.india.gov.in/

Centrally Sponsored Schemes

Centrally Sponsored Schemes are further Divided into Rashtriya Krishi Vikas Yojana and Krishonnati Yojana. Firstly let's understand Rashtriya Krishi Vikas schemes.

Rashtriya Krishi Vikas Yojana

In addition to these key schemes, we also have some Rashtriya Krishi Vikas Yojana and Krishonnati Yojana funded by the central government. As they also provide substantial support to the farmers, you should know about them for sure. 

#10- Rashtriya Krishi Vikas Yojana-Detailed Project Report based schemes (RKVY- DPR)

The RKVY-DPR-based schemes under the Rashtriya Krishi Vikas Yojana aim to encourage the holistic development of the Indian agricultural sector by improving agricultural infrastructure, promoting sustainable farming practices, and empowering farmers through skill development and innovation. It was launched on 24th February 2019

It provides financial assistance to fill the resource gap for small-scale and marginal farmers. One can apply to this scheme through the Department of Agriculture and Farmers Welfare at the state and central levels. 

#11- Soil Health Card (SHC)

Through this scheme, the Indian government aims to improve soil health by providing details about soil health indicators. The card helps farmers to diagnose the soil without investing in any technical equipment.  

#12- Rainfed Area Development (RAD)

This scheme was launched in 2015 and aims to promote the IFS or Integrated Farming System in India. It is ideal for farmers involved in multi-cropping, mixed cropping, and inter-cropping activities with allied services like fishery, livestock, horticulture, and apiculture. 

#13- Per Drop More Crop (PDMC)

If you’re an Indian farmer using Micro Irrigation technologies, this scheme will help you reduce fertilizer usage, input cost, and labour expenses. It was launched in 2015-16 and supports micro-level water harvesting. 

#14- Micro Irrigation Fund (MIF)

Through this scheme, the central government aims to facilitate resource mobilization for the Micro Irrigation expansion. Farmers from states like Gujarat, Punjab, Tamil Nadu, Rajasthan, and Andhra Pradesh can get financial assistance from NABARD at a lower interest of 3% under this scheme. In addition, an interest subvention on the loan interest rate is offered by the states. 

#15- Paramparagat Krishi Vikas Yojana (PKVY)

With the help of the Paramparagat Krishi Vikas Yojana (PKVY) scheme, the central government plans to boost soil fertility to promote better crop production while eliminating the usage of agro-chemicals. Only farmers in the group of a minimum of 20 farmers can avail of this scheme and the offered benefits is Rs. 15,000 through DBT. 

#16- Sub-Mission on Agriculture Mechanization (SMAM)

The Sub Mission on Agricultural Mechanization (SMAM) has been effectively promoting inclusive growth of agricultural mechanization since 2014 and offering financial aid to farmers so that they can acquire farm mechanization technologies easily. 
Aid to purchase drones, tractors, power tillers, plant protection machines, and self-propelled machines is offered. 

#17- Crop Residue Management

Farmers of Punjab, NCT, Haryana, and UP can take the help of the Crop Residue Management scheme to effectively manage the crop residue. Through this scheme, the government aims to reduce air pollution and loss of nutrients. 

#18- Agro Forestry 

This scheme is designed to encourage plantation on the farmlands with the use of planting materials and more plantations on farmland. 

Krishonnati Yojana

Here is a list of key schemes in India that aim to do the overall development of farming in India. 

#19- National Food Security Mission (NFSM)

This scheme is designed to boost the production of key crops such as rice, wheat, courses, cereals, and nutri-cereals in 28 Indian states and 2 UTs. 

#20- Sub-Mission on Seed and Planting Material (SMSP)

SMSP scheme is designed to develop the seed sector so that good quality seeds are provided to the farmers. It provides grants for setting up the infrastructure, research, and production facilities required for quality production. It was launched on 19th

April 2023 and is now run in collaboration with the NFSM scheme. 

#21- National Mission on Edible Oils (NMEO)-Oil Palm

It came into being in 2021 and works relentlessly in the direction of promoting the production of edible oils so that Indians become Aatamnirbhar in edible oils. Its key focus is in the North-Eastern States and A&N Islands and provides a corpus to set up palm farms. 

#22- Mission for Integrated Development of Horticulture (MIDH)

It was launched in 2014-15 and tries to support the holistic growth of the horticulture sector spread across domains like spices, fruits, vegetables, plants, cocoa, lower, and many more. 

#23- National Bamboo Mission (NBM)

This scheme is available for the farmers, involved in bamboo production, of 28 states and U&K UT. Under this scheme, the government has set up nurseries all over allotted states to promote bamboo production. It is merged with MIDH.

#24- Integrated Scheme for Agriculture Marketing (ISAM)

ISAM scheme supports many Indian states so that they can set up a robust agricultural produce marketing structure and help farmers reach the right markets for their harvested crops. It’s now properly known as e-NAM and it’s a free-to-use online portal listing over 1.76 crore farmers & 2.5 lakh traders. 

#25- Mission Organic Value Chain Development for North Eastern Region( MOVCDNER) 

This scheme aims to develop highly specific and fully certified organized clusters in North East Indian states like Assa, Manipur, Sikkim, and Tripura. 

#26- Sub-Mission on Agriculture Extension (SMAE)

This scheme set up the ATMA or Agricultural Technology Management Agency at the district level so that farmers have seamless access to farming-related technologies. Under this scheme, facilities such as Virtually Integrated Systems To Access Agricultural Resources, Apurva AI, Wadhwani- Krishi, Krishi Call Centers, and many more are offered to empower farmers. 

#27- Digital Agriculture

The prime aim of the scheme is to develop a farming-dedicated digital public infrastructure that farmers can access without any hassles. It will help farmers to access the right markets, access crop health, get crop insurance, and use market intelligence tools easily. 

Are you Ready For Central Government Schemes? 

The Indian government understands the very fact that farmers and farming are the two major pillars of the nation. This is why it offers a wide range of schemes to support farmers at every level and from every domain. 

We provided you with a quick overview of a total of 27 central government schemes so that you know that you have many ways to get empowered as a farmer. So, which central government scheme do you like the most? Share your views with us.