Utilization pattern of the funds received under PM Kisan Samman Nidhi Yojana in Meerut district of Uttar Pradesh

Introduction

Agriculture continues to play a pivotal role in India's economy by providing livelihood opportunities, ensuring food security and supporting rural employment (Food and Agriculture Organization [FAO], 2023 [3] ; Ministry of Agriculture and Farmers Welfare [MoAFW], 2024) [8] . A substantial proportion of the country's population depends directly or indirectly on agriculture for income and sustenance. Despite remarkable progress in agricultural production, the farming community continues to face numerous challenges, including increasing input costs, fragmented landholdings, climatic uncertainties, fluctuating market prices and inadequate access to institutional credit (FAO, 2023) [3] . These constraints particularly affect small and marginal farmers, often resulting in delayed purchase of agricultural inputs and reduced investment in crop production.

To address these challenges, the Government of India has introduced several farmer-oriented welfare programmes, among which the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has emerged as one of the largest direct income support initiatives. Launched in December 2018, the scheme provides financial assistance of ₹6,000 per year to eligible farmer families in three equal instalments through the Direct Benefit Transfer (DBT) mechanism. The scheme was designed to supplement farmers' income by enabling them to meet expenses related to agricultural production and other essential household requirements. The DBT system has also enhanced transparency, minimized Agriculture continues to play a pivotal role in India's economy by providing livelihood opportunities, ensuring food security and supporting rural employment (Food and Agriculture Organization [FAO], 2023; Ministry of Agriculture and Farmers Welfare [MoAFW], 2024) [3,8] . A substantial proportion of the country's population depends directly or indirectly on agriculture for income and sustenance. Despite remarkable progress in agricultural production, the farming community continues to face numerous challenges, including www.extensionjournal.com increasing input costs, fragmented landholdings, climatic uncertainties, fluctuating market prices and inadequate access to institutional credit (FAO, 2023; NITI Aayog, 2021) [3, ] . These constraints particularly affect small and marginal farmers, often resulting in delayed purchase of agricultural inputs and reduced investment in crop production. To address these challenges, the Government of India has introduced several farmer-oriented welfare programmes, among which the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has emerged as one of the largest direct income support initiatives. Launched in December 2018, the scheme provides financial assistance of ₹6,000 per year to eligible farmer families in three equal instalments through the Direct Benefit Transfer (DBT) mechanism. The scheme was designed to supplement farmers' income leakages and ensured that financial assistance reaches beneficiaries directly through their bank accounts. The effectiveness of any income support programme depends not only on the timely transfer of funds but also on how beneficiaries utilize the financial assistance received (Organisation for Economic Co-operation and Development [OECD], 2020; Food and Agriculture Organization [FAO], 2023) [3] . Productive utilization of PM-KISAN assistance for purchasing quality seeds, fertilizers, pesticides, irrigation services and other farm inputs has the potential to improve agricultural productivity, reduce dependence on informal credit and strengthen farm income (Ministry of Agriculture and Farmers Welfare [MoAFW], 2024; FAO, 2023) [8,3] . Conversely, diversion of funds towards household consumption or other non-agricultural purposes may reduce the immediate impact of the scheme on agricultural investment, although such expenditure may still contribute to household welfare and financial stability (FAO, 2023) [3] . Several studies conducted across different states have reported that PM-KISAN assistance is predominantly utilized for purchasing agricultural inputs, while a proportion of beneficiaries also spend the amount on household consumption, education, healthcare and other domestic needs. However, the utilization pattern varies considerably depending upon regional agricultural conditions, cropping systems, farm size, socio-economic characteristics and the timing of instalment disbursement. Therefore, regionspecific studies are essential for understanding how beneficiary farmers actually use the financial assistance and whether the objectives of the scheme are being achieved under local farming conditions. Meerut district, located in the western region of Uttar Pradesh, is characterized by fertile alluvial soils, extensive irrigation facilities and intensive cultivation of sugarcane, rice and wheat. Agriculture forms the primary occupation of a large proportion of rural households, making the district an appropriate location for examining the utilization of PM-KISAN assistance. Understanding the expenditure behaviour of beneficiary farmers in this region provides valuable insights into the effectiveness of direct income support in strengthening agricultural production and improving rural livelihoods. The present study was therefore undertaken to analyse the utilization pattern of funds received under PM-KISAN Samman Nidhi Yojana among beneficiary farmers in Meerut district of Uttar Pradesh. The findings are expected to contribute to the existing literature on direct income support programmes and provide useful. evidence for policymakers in improving the implementation and effectiveness of PM-KISAN scheme.

Materials and Methods

The present study was conducted during 2025-26 in Meerut district of Uttar Pradesh to analyse the utilization pattern of funds received under the PM-KISAN Samman Nidhi Yojana. An ex post facto research design was adopted as the scheme had already been implemented. Meerut district was purposively selected due to its high agricultural importance and substantial number of PM-KISAN beneficiaries. A multistage random sampling technique was followed. Two community development blocks were selected randomly, followed by four villages from each community development block. Subsequently, 80 beneficiary farmers (10 from each village) were selected through simple random sampling. Primary data were collected through personal interviews using a pre-tested structured interview schedule, while secondary information was obtained from relevant government publications and official sources. The utilization pattern of PM-KISAN funds was assessed under agricultural and non-agricultural purposes. The collected data were classified, tabulated and analysed using frequency and percentage to describe the utilization pattern of financial assistance among the beneficiaries

Results and Discussion Utilization Pattern of Funds Received under PM-KISAN Samman Nidhi Yojana in Meerut District of Uttar Pradesh

The findings revealed that 92.50% of the respondents utilized PM-KISAN assistance for the purchase of improved, highyielding and hybrid seeds, making it the most common use of the financial support. This was followed by expenditure on fertilizers, micronutrients and bio-fertilizers (80.00%), indicating that the assistance was largely invested in essential crop production inputs. More than half of the respondents (58.75%) used the funds for purchasing pesticides and insecticides, while 52.50% utilized the amount for field preparation. A comparatively smaller proportion of beneficiaries spent the assistance on crop harvesting and threshing (33.75%) and payment of hired labour (33.75%). Only 13.75% utilized the funds for irrigation charges and electricity bill payment, whereas 11.25% used the amount for fodder and cattle feed. Soil testing was the least preferred purpose, reported by only 10.00% of the respondents. These findings indicate that beneficiary farmers primarily considered PM-KISAN assistance as a source of working capital for purchasing critical agricultural inputs required during the crop production cycle, rather than for post-harvest operations or other farm-related expenses. The findings are in agreement with Verma et al. (2022) [11] and Bhadwal and Kumar (2022) [2] , who reported that PM-KISAN beneficiaries primarily utilized the financial assistance for purchasing seeds, fertilizers and other agricultural inputs, thereby facilitating timely crop production and reducing dependence on external borrowing The utilization of PM-KISAN assistance for non-agricultural purposes was also considerable. Among the respondents, www.extensionjournal.com 60.00% reported using the funds to meet household consumption expenses, indicating that the financial assistance also served as a supplementary source of income for managing routine family needs. Only 03.75% of the respondents utilized the funds for medical expenses, while 02.50% retained the amount as savings or bank deposits. The respondents further stated that the utilization of the funds largely depends on the timing of their receipt. The funds are generally allocated to the most urgent needs prevailing at the time they are received, rather than being earmarked for a specific purpose in advance. The utilization pattern of financial assistance received under the PM-KISAN Samman Nidhi Yojana was analysed under two broad categories, namely agricultural and nonagricultural purposes. The findings are presented in Tables 1 and2. The findings suggest that although PM-KISAN is primarily intended to support agricultural activities, the assistance also plays an important role in enhancing household financial security, particularly in meeting essential consumption needs. The limited use of funds for savings indicates that the amount received is generally insufficient to generate surplus income after meeting immediate farm and household expenditures. Similar observations have been reported by Bhadwal and Kumar (2022) [2] , who found that beneficiaries utilized a portion of the PM-KISAN assistance for household consumption, particularly during periods of financial need, while agricultural expenditure remained the primary priority. Overall, the results demonstrate that PM-KISAN assistance is predominantly utilized for productive agricultural investment, especially the purchase of quality seeds and fertilizers, while a considerable proportion is also used to support essential household consumption. This pattern indicates that the scheme contributes both to strengthening crop production and to improving the short-term financial resilience of beneficiary farming households.

Conclusion

The present study assessed the utilization pattern of financial assistance received under the PM-KISAN Samman Nidhi Yojana among beneficiary farmers in Meerut district of Uttar Pradesh. The findings revealed that the financial assistance was utilized predominantly for agricultural purposes, indicating that the scheme has largely achieved its objective of supporting farm production. The majority of the respondents used the funds for purchasing improved and hybrid seeds, fertilizers, micronutrients, bio-fertilizers, pesticides and insecticides, highlighting the importance of PM-KISAN as a source of timely working capital for crop cultivation. Comparatively fewer beneficiaries utilized the assistance for irrigation, electricity charges, soil testing, fodder or payment of hired labour. Besides agricultural investment, a considerable proportion of beneficiaries utilized the financial assistance to meet household consumption expenses, while only a negligible percentage spent the amount on medical expenses or retained it as savings. The findings suggest that PM-KISAN not only facilitates timely purchase of essential agricultural inputs but also provides short-term financial support for managing household needs during periods of economic stress. Overall, the study concludes that the PM-KISAN Samman Nidhi Yojana has emerged as an important income support programme for beneficiary farmers in Meerut district. Timely release of instalments aligned with the cropping calendar, along with greater awareness regarding productive utilization of financial assistance, may further enhance the effectiveness of the scheme in improving agricultural productivity and strengthening the economic resilience of farming households.

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