National Farmers Day, popularly known as Kisan Diwas, is observed every year on December 23 to honour the birth anniversary of former Prime Minister Chaudhary Charan Singh. He is widely remembered for his strong commitment to farmers’ welfare and rural development.
Kisan Diwas highlights the vital role farmers play in ensuring food security, supporting the rural economy and sustaining India’s growth.
Over the years, the central government has launched multiple schemes to boost farm income, manage risks and modernise agriculture. On Kisan Diwas 2025, here is a look at the top 10 government schemes empowering India’s farmers.
PM-Kisan is one of the most important income support schemes for farmers. Eligible landholding farmers receive ₹6,000 per year in three equal instalments of ₹2,000 each through direct benefit transfer. The scheme helps farmers meet essential expenses such as seeds, fertilisers and household needs without excessive dependence on loans.
The Pradhan Mantri Fasal Bima Yojana provides crop insurance against losses caused by floods, droughts, hailstorms, pests and diseases. Covering more than 50 crops across India, the scheme reduces financial stress and helps farmers recover quickly after crop damage.
The Kisan Credit Card (KCC) scheme was launched to ensure farmers have easy and timely access to credit for meeting their agricultural and allied activity needs. Under the scheme, the Government of India offers an interest subvention of 2% along with a Prompt Repayment Incentive of 3%, enabling eligible farmers to avail loans at a highly subsidised effective interest rate of 4% per annum.
Eligibility under the KCC scheme extends to individual or joint farmer borrowers who are owner-cultivators, as well as tenant farmers, oral lessees and sharecroppers. In addition, Self Help Groups (SHGs) and Joint Liability Groups (JLGs) comprising farmers, including tenant farmers and sharecroppers, are also eligible to benefit from the scheme.
The Paramparagat Krishi Vikas Yojana (PKVY) is aimed at encouraging and expanding organic farming practices, thereby improving soil health and sustainability.
Under PKVY, funding is shared between the Centre and States in a 60:40 ratio. For Northeastern and Himalayan States, central assistance is provided in a 90:10 ratio, while Union Territories receive 100% funding support. The scheme targets bringing an additional 6,00,000 hectares of land under organic cultivation by 2025–26.
The Rashtriya Krishi Vikas Yojana focuses on strengthening agriculture as an economic activity. It provides financial support for projects that improve productivity, reduce risks and strengthen value chains, while allowing states flexibility to address local needs.
Agricultural machinery plays a crucial role in improving productivity by enabling timely and precise farm operations. To promote the adoption of farm mechanisation and increase farm power availability to 2.5 kW per hectare of cultivable land, the Sub Mission on Agricultural Mechanisation (SMAM) is being implemented across all states in India.
The SMAM includes both centrally sponsored and central sector components. Under the centrally sponsored component, the Government of India bears 60% of the total cost, while states contribute 40%. For north-eastern and Himalayan states, the funding pattern is 90% from the Centre and 10% from the states. In the case of Union Territories, the central government provides 100% financial support.
The National Agriculture Market, or e-NAM, is an online trading platform connecting APMC mandis across the country. It enables transparent price discovery, faster payments and access to buyers beyond local markets, helping farmers secure better prices.
Under the Soil Health Card scheme, farmers receive soil testing-based reports every three years. These reports guide fertiliser usage, help reduce input costs and support long-term soil fertility and sustainability.
The Agricultural Infrastructure Fund supports investment in post-harvest infrastructure such as warehouses, cold storage and processing units.
Under this financing facility, loans of up to ₹2 crore are eligible for an interest subvention of 3% per annum for a maximum period of seven years. For loans exceeding ₹2 crore, the interest subvention benefit will be restricted to the first ₹2 crore only. The share and extent of funding to private entrepreneurs from the total financing facility will be determined by the National Monitoring Committee.
The scheme will remain operational from 2020–21 to 2032–33, with loan disbursements to be completed within a six-year period.
PM-KUSUM promotes solar energy in agriculture by offering subsidies of 30 to 50% for solar pumps and solarisation of existing pumps. Farmers can also install solar power plants of up to 2 MW on unused land and earn additional income by selling electricity.
Also Read: Empowering Women Entrepreneurs in India: Top 6 Government Loan Schemes!
As India marks Kisan Diwas 2025, these government schemes continue to play a crucial role in improving farmers’ income security, reducing risks and modernising agriculture. Greater awareness and effective utilisation of these initiatives can help create a more resilient, sustainable and prosperous farming sector in the years ahead.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Dec 23, 2025, 2:10 PM IST
Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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