Central sector pension scheme providing ₹3,000 monthly pension to farmers after age 60. Partnership with LIC.
Target Beneficiaries: 18.8 lakh farmers registered. Small and marginal farmers with up to 2 hectares land eligible.
Implementing Agency: Ministry of Agriculture & Farmers Welfare (through LIC as fund manager and CSCs for enrollment)
100
Funding Ratio (Centre:State): 50% by Subscriber : 50% by Central Government
GS Paper: GS2
Syllabus Tags
Launched in September 2019 to provide a safety net to small and marginal farmers who have no other source of pension.
Metric
23.38 Lakh
Source: PIB/Ministry of Agriculture
PM-KMY is a significant step toward social security for the most vulnerable segment of the farming community—Small and Marginal Farmers (SMFs). While it addresses the lack of old-age financial security, its voluntary-contributory nature is a hurdle. Low-income farmers often prioritize immediate consumption over long-term savings. The convergence with PM-KISAN (allowing auto-debit of premiums) is a smart administrative move, but the challenge remains the low real-term value of Rs. 3,000 per month twenty years from now due to inflation.
Use as an example of 'Universal Social Security' in agriculture. Points to highlight: 1. Eligibility (18-40 years). 2. Voluntary and contributory nature. 3. 50:50 contribution by Farmer and Central Government. 4. Administration by LIC as the Pension Fund Manager.