From Policy to Practice: Exploring Beneficiary Farmers Utilization of PM-KISAN Funds

This study investigates the utilization of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme funds by beneficiary farmers in the Marathwada region of Maharashtra across two financial years, 2021-2022 and 2022-2023. Using a multistage sampling technique, data were collected from 300 farmers across six talukas in the Beed and Nanded districts. The analysis focused on the allocation of funds towards agricultural and non-agricultural purposes over three installments each year. Results revealed a shift in fund utilization patterns between the two financial years. In 2021-2022, there was a gradual decrease in agricultural spending from 58.33% in the first installment to just 15.00% in the third, coupled with a rise in non-agricultural spending from 41.67% to 78.33%. Conversely, in 2022-2023, agricultural spending saw a significant increase in the first two installments, peaking at 80.33% before declining to 28.67% in the third installment. Non-agricultural spending followed a similar pattern, with a marked increase towards the end of the financial year. The findings suggest that while the PM-KISAN scheme supports agricultural investments early in the financial year, the funds are increasingly diverted towards household needs as the year progresses. This pattern underscores the dual role of the scheme in sustaining both agricultural productivity and household economic stability. The results have significant implications for policy-makers, As the PM-KISAN scheme is designed to support farmers in distress and is not intended to cover the full cost of cultivation, it may not fully address all financial needs. However, our sample of beneficiary farmers has indicated that the disbursed amount should be increased to Rs. 10,000/- to better meet their farm requirements. Fund diversion and its use for unproductive or non-agricultural purposes lead to the failure of the scheme's designated aim, especially in the summer season. Instead of providing three installments a year, if the government provides two installments of Rs. 5,000 each during the kharif and rabi seasons, it would better serve the purpose of the PM-KISAN scheme. This change could potentially provide farmers with a substantial lump sum of money at crucial points in the year, making it more convenient for managing farm expenses.