Patterns of Financial Utilisation in PM Kisan Samman Nidhi Scheme: Implications for Agricultural Sustainability

The Central Sector Scheme, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has been a significant step towards direct income support (DIS) in India. In developing nations like India, economic growth faces numerous challenges with a large portion of the population dependent on agriculture for their livelihood. Historically small and marginal farmers have suffered exploitation under the landlord and zamindari systems. Even today, these farmers, owning small landholdings, continue to require substantial developmental support. The present study, titled "PM-Kisan Samman Nidhi Scheme: Its Utilization Pattern in Ayodhya and Amethi Districts (UP)," was conducted with the objective of assessing how beneficiaries utilize the financial assistance provided under the scheme. The study was carried out in the Ayodhya and Amethi districts of Uttar Pradesh, which were selected purposefully. Ayodhya district comprises 11 blocks, while Amethi has 13 blocks. Out of these, Milkipur, Hariyangatanganj, Mawai, Amaniganj, Amethi, Musafirkhana, Gauriganj, and Jagdishpur were randomly selected for the study. Further, four villages from each selected block were chosen using a random sampling technique. From each village, 10 PM-KISAN beneficiaries were selected, also through random sampling, forming a total sample size of 320 beneficiaries. The data was collected through personal interviews, conducted at respondents’ farms and homes. The collected information was analyzed using frequency distribution, arithmetic mean, standard deviation, and correlation analysis to derive meaningful insights. The study findings reveal that the majority of respondents (65%) exhibited a medium level of utilization of funds received through the PM-KISAN scheme. Additionally, 20% of respondents demonstrated high utilization, while 15% showed low utilization of financial assistance. Based on these findings, it is recommended that the government enhance the structure and adjust the disbursement of installments in alignment with farmers’ seasonal requirements to maximize the scheme’s impact. The findings suggest that several factors significantly influence the extent to which farmers engage with the scheme. Specifically, annual income, education, size of land holdings, and occupation exhibit moderate to strong positive correlations with scheme utilization, indicating that individuals with better financial standing, higher educational levels, and larger landholdings are more likely to make use of the PM-KISAN Scheme. Furthermore, age, risk orientation, and farming experience also show positive relationships, although these are weaker compared to the aforementioned factors.