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.