Overview of the Proposed Merger
In a landmark policy move announced by the Ministry of Agriculture and Farmers’ Welfare, the central government plans to merge the Pradhan Mantri Kisan Samman Nidhi (PM‑Kisan) with the Krishonnati Yojana. The integration seeks to create a single, unified umbrella scheme that aligns direct income support with infrastructure development, technology adoption, and market linkage for Indian farmers. By consolidating two flagship programmes that together involve an annual outlay of over ₹30,000 crore, the merger is positioned to streamline fiscal transfers, reduce administrative duplication, and deliver a more coordinated welfare experience for the nation’s agrarian community.
Rationale Behind the Consolidation and Core Components
Official statements from the ministry highlight three compelling reasons for the merger. First, overlapping budgetary allocations have historically led to fragmented fund flows, hampering the efficient execution of agricultural projects. Second, the interdependence of credit access, irrigation, and market access calls for an integrated response that can address all three pillars simultaneously. Third, the initiative dovetails with the broader “One Nation, One Scheme” agenda, which aims to simplify welfare delivery across ministries and reduce bureaucratic friction.
The new scheme will retain the ₹6,000 per quarter direct benefit transfer (DBT) to eligible small and marginal farmers while embedding these payments within a larger ecosystem that includes: 
- Integrated Infrastructure Development: Funding for irrigation canals, cold‑storage facilities, and logistics hubs will be pooled under a single budget line.
- Technology Up‑Scaling: Expansion of digital platforms for crop advisory services, real‑time market price alerts, and e‑procurement portals.
- Capacity Building and Extension Services: Enhanced training programmes for farmers on modern agronomy, climate‑smart techniques, and post‑harvest management.
- Market Linkage and Price Stabilisation: Creation of farmer producer organisations (FPOs) and direct market access portals to improve price discovery.
These components are designed to ensure that cash support is not an isolated hand‑out but a catalyst for broader agrarian transformation.
Implementation Timeline and Governance Structure
The rollout will occur in three distinct phases, each with clear milestones:
- Phase I (Fiscal Year 2026‑27): Pilot integration in 12 high‑burden states, focusing on data harmonisation, IT system upgrades, and pilot training modules.
- Phase II (Fiscal Year 2027‑28): Expansion to the remaining states, accompanied by the launch of a unified beneficiary portal that tracks entitlement,disbursement, and utilisation metrics.
- Phase III (Fiscal Year 2028‑29): Full nationwide operationalisation, supported by a mid‑term evaluation to fine‑tune scheme parameters.
To oversee the transition, a joint steering committee comprising officials from the Ministry of Agriculture, the Ministry of Finance, and NITI Aayog will be instituted. The committee will publish quarterly performance dashboards that track:
- Number of beneficiaries receiving DBT.
- Utilisation rate of infrastructure funds.
- Changes in crop productivity and farmer income.
- Annual farmer satisfaction surveys.
Independent audits will also be commissioned to verify fiscal transparency and assess cost‑effectiveness, with findings made publicly available on government portals.
Potential Impacts on Farmers and Expert Perspectives
Stakeholder reactions have been cautiously optimistic. The National Farmers Federation noted that “the convergence of cash transfers with targeted infrastructure investment could dramatically improve productivity if implementation is swift.” State governments, meanwhile, will need to adjust their own budgetary allocations, and there is a risk of temporary funding gaps during the migration of beneficiaries to the new digital platform. To mitigate this, the central government has earmarked a contingency fund of ₹5,000 crore for the first two years, ensuring that cash flows to farmers remain uninterrupted.
Experts drawing comparisons with global best practices point to Brazil’s Integrated Agricultural Support model, where cash transfers are directly linked to agronomy extension services. Studies from that programme have shown a 12‑15 % uplift in average yields when complementary services are delivered simultaneously. Indian analysts suggest that a similar synergy could materialise if the merged scheme effectively channels resources toward irrigation, seed distribution, and market access, particularly for small and marginal farmers who form the backbone of the nation’s food security.
Reactions from State Governments, Industry, and Civil Society
State agricultural departments have expressed a mix of enthusiasm and apprehension. While many chief ministers have lauded the potential for reduced administrative overhead, others have highlighted the need for capacity building within their jurisdictions to manage the integrated data ecosystem. Industry bodies, including the Confederation of Indian Industry (CII), have pledged to collaborate with the central government on pilot projects that explore private‑sector participation in cold‑chain infrastructure and agri‑tech innovation. Civil society organisations, such as the Bharat Krishi Samaj, have called for robust grievance redressal mechanisms to address the concerns of farmers who may face delays in benefit disbursement during the transition phase.
Conclusion and Future Outlook
The merger of PM‑Kisan and Krishonnati Yojana represents a strategic pivot toward a more cohesive agricultural policy architecture that aligns fiscal support with developmental outcomes. If executed with precision, the integrated model could enhance fiscal efficiency, improve service delivery, and translate into higher incomes and better livelihoods for millions of Indian farmers. Continued stakeholder engagement, robust monitoring, and adaptive management will be critical to realise the full potential of this unified scheme and ensure that the benefits reach every corner of India’s agrarian landscape.
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