Union Cabinet Approves 'PM-Kisan Samriddhi Yojana' Phase II for Farmer Welfare and Agricultural Resilience
The Union Cabinet has approved the second phase of the 'PM-Kisan Samriddhi Yojana', a comprehensive scheme designed to enhance farmer welfare and bolster agricultural resilience across India. This phase introduces expanded direct income support, improved access to credit, and a focus on climate-resilient agricultural practices and market linkages for small and marginal farmers. The scheme aims to further stabilize farm incomes and promote sustainable farming.
2-Minute Summary (TL;DR)
- The Union Cabinet approved 'PM-Kisan Samriddhi Yojana' Phase II on May 18, 2026.
- Phase II expands direct income support under PM-KISAN, potentially increasing annual payout to ₹8,000.
- The original PM-KISAN scheme was launched on February 24, 2019, providing ₹6,000 annually in three installments.
- The scheme utilizes Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts, benefiting over 12 crore farmer families.
- A key focus of Phase II is climate-resilient agriculture, supported by a new ₹5,000 crore Climate-Smart Agriculture Fund.
- Phase II aims to enhance access to institutional credit for small and marginal farmers, streamlining Kisan Credit Card (KCC) access.
- It also strengthens Farmer Producer Organizations (FPOs) to improve market linkages and collective bargaining.
- The Ministry of Agriculture & Farmers Welfare is the nodal ministry for the scheme.
- Small and marginal farmers, constituting over 86% of India's farming community, are primary beneficiaries.
- The scheme aligns with India's goal of doubling farmers' income and commitments under the Paris Agreement.
- Over ₹2.5 lakh crore has been disbursed under PM-KISAN Phase I since its inception.
- Related schemes include PMFBY, e-NAM, PKVY, NMSA, and Agriculture Infrastructure Fund (AIF).
Why In News
The Union Cabinet's approval on May 18, 2026, for 'PM-Kisan Samriddhi Yojana' Phase II marks a significant policy decision to address persistent challenges in the agricultural sector, including income volatility and climate change impacts. This new phase builds upon the successes and lessons learned from the initial phase, introducing targeted interventions to ensure more inclusive and sustainable growth for Indian farmers, particularly ahead of the upcoming Kharif season.
Syllabus Connection
This news highlights government's welfare schemes for the agricultural sector, focusing on direct income support, climate resilience, and market linkages, which are critical for addressing rural distress and achieving sustainable development goals.
Prelims vs Mains — What to Focus On
| Aspect | Prelims | Mains |
|---|---|---|
| What | Union Cabinet approved 'PM-Kisan Samriddhi Yojana' Phase II. | Comprehensive scheme for farmer welfare, income support, and agricultural resilience. |
| When | Approved May 18, 2026; PM-KISAN launched Feb 24, 2019. | Evolution of agricultural policy towards direct income support and climate adaptation. |
| Key Features | Increased income support (₹8,000), Climate-Smart Agriculture Fund (₹5,000 crore), FPO strengthening. | Multi-pronged approach integrating financial aid, sustainable practices, and market empowerment. |
| Beneficiaries | Over 12 crore landholding farmer families, especially small and marginal farmers. | Targeted interventions for vulnerable farming communities to ensure inclusive growth. |
| Nodal Ministry | Ministry of Agriculture & Farmers Welfare. | Role of central government in designing and implementing large-scale welfare programs for critical sectors. |
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| UPSC / State PCS | High | 8–12 | UPSC tests implementation, target beneficiaries, and outcomes — not just scheme names. |
| SSC (CGL / CHSL / MTS) | Very High | 5–8 | Government schemes are one of the most tested topics in SSC CGL and CHSL GK sections. |
| Banking (IBPS / SBI) | High | 4–6 | Financial inclusion schemes, Jan Dhan, PMSBY, and credit guarantee schemes are key banking exam topics. |
| State PCS / PSC | Very High | 6–10 | Both central and state schemes are tested extensively in state PCS papers. |
| Railway (RRB NTPC / Group D) | High | 4–7 | Central government welfare schemes are a consistent Railway GK topic. |
Key Facts to Remember: Union Cabinet Approves 'PM-Kisan Samriddhi Yojana' Phase II for Farmer Welfare and Agricultural Resilience
- The Union Cabinet approved 'PM-Kisan Samriddhi Yojana' Phase II on May 18, 2026.
- Phase II expands direct income support under PM-KISAN, potentially increasing annual payout to ₹8,000.
- The original PM-KISAN scheme was launched on February 24, 2019, providing ₹6,000 annually in three installments.
- The scheme utilizes Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts, benefiting over 12 crore farmer families.
- A key focus of Phase II is climate-resilient agriculture, supported by a new ₹5,000 crore Climate-Smart Agriculture Fund.
- Phase II aims to enhance access to institutional credit for small and marginal farmers, streamlining Kisan Credit Card (KCC) access.
- It also strengthens Farmer Producer Organizations (FPOs) to improve market linkages and collective bargaining.
- The Ministry of Agriculture & Farmers Welfare is the nodal ministry for the scheme.
- Small and marginal farmers, constituting over 86% of India's farming community, are primary beneficiaries.
- The scheme aligns with India's goal of doubling farmers' income and commitments under the Paris Agreement.
- Over ₹2.5 lakh crore has been disbursed under PM-KISAN Phase I since its inception.
- Related schemes include PMFBY, e-NAM, PKVY, NMSA, and Agriculture Infrastructure Fund (AIF).
Practice Questions
Q1. When was the original Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme launched?
- January 1, 2018
- February 24, 2019
- May 1, 2019
- August 15, 2020
Explanation: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme was officially launched on February 24, 2019, from Gorakhpur, Uttar Pradesh. It aimed to provide income support to eligible landholding farmer families across the country.
Q2. What is the primary mechanism used for transferring financial benefits to farmers under the PM-KISAN scheme?
- Cheques issued by local banks
- Cash payments through post offices
- Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts
- Vouchers redeemable at agricultural cooperatives
Explanation: The PM-KISAN scheme operates on a Direct Benefit Transfer (DBT) model, where the financial assistance is directly credited to the Aadhaar-linked bank accounts of eligible farmer families. This ensures transparency and reduces leakages in the delivery system.
Q3. Which Union Ministry is responsible for the implementation of the PM-Kisan Samriddhi Yojana?
- Ministry of Finance
- Ministry of Rural Development
- Ministry of Agriculture & Farmers Welfare
- Ministry of Food Processing Industries
Explanation: The PM-Kisan Samriddhi Yojana, including its PM-KISAN component, is implemented under the purview of the Ministry of Agriculture & Farmers Welfare. This ministry is the nodal agency for agricultural policies and farmer welfare schemes in India.
Q4. What is the approximate percentage of small and marginal farmers in India's total farming community?
- Around 40%
- Around 60%
- Around 75%
- Over 86%
Explanation: Small and marginal farmers, defined as those owning less than 2 hectares (5 acres) of land, constitute over 86% of India's total farming community. The PM-Kisan Samriddhi Yojana specifically targets this vulnerable segment to enhance their income and resilience.
Q5. A new fund of ₹5,000 crore has been proposed in PM-Kisan Samriddhi Yojana Phase II for which specific purpose?
- Agricultural export promotion
- Development of food processing units
- Climate-Smart Agriculture
- Fisheries infrastructure development
Explanation: The 'PM-Kisan Samriddhi Yojana' Phase II introduces a new Climate-Smart Agriculture Fund of ₹5,000 crore. This fund is dedicated to promoting sustainable and climate-resilient farming practices, research, and the adoption of adaptive technologies to mitigate climate change impacts on agriculture.
How to Prepare Government Schemes for Government Exams — Union Cabinet Approves 'PM-Kisan Samriddhi Yojana…
Create a scheme log: Name | Ministry | Target | Key Feature. Add every new scheme as it appears. Review this weekly.
Focus on 'Flagship' schemes: PM-KISAN, PMAY, Ayushman Bharat, PM SVANidhi. These generate the most questions.
For UPSC, understand the policy objective behind the scheme — income support, housing, health insurance. The 'why' matters more than the name.
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