Impact of PMKISAN Yojana on crop yield and income of farmers in Tamil Nadu, India

Agricultural subsidy and direct benefit transfer are pivotal policy instruments aimed at increasing adoption of modern technologies to enhance the income of small and marginal farmers. This study had analyzed the impact of Pradhan Mantri Kisan Samman Nidhi Yojana (PMKISAN) on crop yield and farm income in Tamil Nadu. Data were collected from 360 households, comprising both beneficiaries and non-beneficiaries and the impact was estimated using Propensity Score Matching (PSM). The findings indicate that PMKISAN was utilized maximum in crop production (55.60%), resulting in an income increase of Rs. 4831/ ha from paddy cultivation compared to non-beneficiaries. Challenges such as complexity in land records, lack of knowledge on e-KYC registration process, and access to credit facilities were identified as the factors affecting the participation. Addressing issues related to land records, ease of e-KYC registration and facilitation of address validation and payments/money transfers through involving of post offices can further increase the number of beneficiaries. Thus, PMKISAN assistance had a significant impact on increasing the farm income of small and marginal farmers.