Analyzing PM-KISAN fund utilization in Southern Indian agriculture

This study investigates the factors influencing the spending patterns of farmers receiving financial assistance through the Pradhan Mantri Kisan Samman Nidhi (PM KISAN) program in five southern Indian states. Using a mixed-methods approach, the research collected data from 1900 PM KISAN beneficiaries across Tamil Nadu, Kerala, Andhra Pradesh, Telangana and Karnataka. The study employed factor analysis to identify key determinants of spending behaviour. Results reveal four primary factor groups: agricultural spending, repayment, social spending and household mandatory spending. The timing of fund disbursement coinciding with agricultural operations emerged as the most influential determinant, followed by farmers' interest in agriculture. Regional variations were observed, with Kerala and Tamil Nadu showing higher agricultural spending tendencies, while Andhra Pradesh and Telangana displayed stronger influences from financial pressures and social factors. The study also highlights the significant impact of socio-economic characteristics, such as farm size, education level and credit orientation, on spending decisions. These findings suggest that aligning fund disbursement with agricultural cycles enhances program efficacy. Policy recommendations include financial literacy programs and improved fund allocation strategies. The study contributes to a more nuanced understanding of the PM KISAN program's impact on rural livelihoods and agricultural productivity in southern India.