Hyderabad: How pensions can be game-changer for long-term sustenance of farmers

Hyderabad: Pension Fund Regulatory and Development Authority (PFRDA) has pitched for the National Pension System (NPS) for farmers

During the 5th edition of the Farmer Producer Organization (FPO) conclave, PFRDA presented the National Pension System (NPS) as a low-cost, accessible retirement product for the farming community and informal workers, aiming to expand pension coverage beyond the salaried sector.

The move, it said, can help expand pension coverage beyond the salaried sector.

PFRDA participated as a strategic partner in the 5th edition of the Farmer Producer Organization (FPO) Conclave, organised by Samunnati Foundation in Hyderabad on September 3–4, 2025.

The conclave brought together over 1,000 FPOs, agri-businesses, financiers, policymakers, and technology innovators under the theme “Partnerships for Sustainability towards a Future-Ready FPO Ecosystem.”

Pensions for Farmers

In her special address, Mamta Rohit, Executive Director, PFRDA, drew parallels between FPOs and pensions.

“Just as FPOs have empowered farmers by providing better access to markets, technology, and finance, NPS can empower them to secure their future beyond active farming. With small, regular savings today, farmers can build a financial cushion that ensures a stress-free and self-reliant old age,” she said.

She also demonstrated the NPS Trust Calculator, showing how modest contributions can accumulate into a significant corpus. “PFRDA is working towards introducing reforms in NPS to make it more accessible and easier to onboard, especially for FPOs, farmers, and the informal sector,” she added.

A panel discussion on “NPS – Pension for Every Farmer” highlighted opportunities to strengthen financial security for rural workers. Moderated by Suparna Tandon, CEO, NPS Trust, the session underlined the responsibility to bring farmers into India’s pension net.

“The NPS architecture has grown into a trusted system with over ₹15 trillion of assets under management, serving millions of citizens. Our responsibility is to ensure that farmers, too, are seamlessly included in this journey of financial security. By building awareness, simplifying access, and working with institutions like FPOs, we can ensure that no farmer is left behind,” she said.

Panelists included:

• S. Radhakrishnan, CGM, SBI: He emphasised the role of banks, CSPs, and Bank Mitras in mobilising pension enrolments at the village level.

• K. Ramalingam, GM, NABARD: He underlined how grassroots institutions like FPOs, SHGs, and cooperatives can embed pensions in rural livelihood systems.

• Ranbheer Singh Dhariwal, Protean eGov Technologies Ltd.: He highlighted how eKYC, UPI, and multilingual platforms can simplify NPS onboarding.

• Yogesh Dwivedi, CEO, Madhya Bharat Consortium of FPOs: He shared the farmers’ perspective on old-age dependence and announced that their consortium would contribute ₹1,000 to the NPS accounts of 500 farmers this year.

The discussion framed pensions as a “second harvest” for farmers—small savings that can mature into a regular income in old age.

New Schemes and Features

On new developments, PFRDA noted several changes in the NPS framework:

• Extended entry age to 70 years to cover people working beyond traditional retirement.

• NPS Vatsalya, introduced last year, allows enrolment from age 1 to 75.

• Flexible withdrawals permit subscribers to withdraw up to 25% of their contributions on three occasions for health, education, or marriage-related needs.

Mamta Rohit explained, “Initially, it was allowed to take out 60 percent and then 40 percent. The corpus invested keeps earning returns and ensures a monthly income. We are also working on new models for the agriculture segment and for women.”

Addressing Informal Workers and Digital Divide

PFRDA is seeking to improve penetration among informal workers and rural communities.

“Awareness, training, and digital models are making onboarding easier, even in small centres not linked with banks,” Rohit noted. Partnerships with FPOs, cooperatives, NGOs, and associations are central to this strategy.

On digital access gaps, the Authority acknowledged challenges. “We come through corporates, associations, organisations, and go through FPOs. That’s how we can reach farmers who lack direct digital access,” Rohit said.

Looking Ahead

Responding to questions on long-term vision, officials said PFRDA is working towards universal coverage.

“The pension sector by 2047—our canvas by then is very large. We would want to cover everybody. There are 46 crore working people in India. It’s a long way to go,” Mamta Rohit said.

Fintech integration is also being considered. “We are exploring UPI, Aadhaar-linked wallets, and AI-driven tools to make saving seamless. But the challenge is to balance innovation with safeguards. Media campaigns and social media outreach are key tools in building awareness.”

Exhibition and Outreach

Alongside the panel, PFRDA set up an exhibition at the conclave, showcasing NPS features tailored to the farming community.

Through its participation, the Authority reiterated its commitment to ensuring old-age income security for all citizens, especially farmers who form the backbone of India’s rural economy.