Krishak Bandhu cash transfers for smallholder farmers in West Bengal: drivers of performance and key impediments

Introduction Cash-transfer programs play an important role in social protection worldwide, providing predictable, non-contributory payments to reduce poverty, smooth consumption, and support productive investment among vulnerable households. Direct Benefit Transfers (DBT) aim to lower transaction costs and leakage while improving timely liquidity for smallholders who face seasonal cash shortfalls and limited formal credit. The scheme provides beneficiaries up to ₹10,000 annually and ₹200,000 death insurance cover for farmers aged 18–60 via DBT method. Despite government reports indicating improvements in beneficiaries’ living standards, rigorous assessments of the scheme’s association with livelihoods remain limited. Methods Since the scheme is operational only in West Bengal, the study was confined to the state. From the state, Bankura district was selected, then a total of three blocks, and from each block two villages were chosen by simple random sampling (SRS) method. An ex post facto research design was used; data were collected from 120 beneficiaries from selected villages using their sampling frames. The study used Binary Logistic Regression to analyze the progress of the scheme, and the Friedman test was employed to test impediments. Results A majority of beneficiaries (74.17%) reported purchasing agricultural inputs. Many beneficiaries reported perceived improvements in agricultural productivity (58.33%) and changes in cropping patterns (50.83%). Only a few reported investments in capital (example 2.5% purchased land), indicating the transfer primarily met immediate needs. Logistic regression showed older farmers had 8.5% lower odds of reporting progress ( p = 0.001), while each unit increase in positive perception raised the odds of progress by 45.4% ( p = 0.019). Among perceived impediments, marginal landholding (<1 acre) was rated most severe, followed by illiteracy navigating officials and difficulty updating land records all significant in the Friedman test. Discussion Cash transfers are associated with short-term operational needs but do not address systemic barriers. Major impediments include disproportionate benefits for marginal farmers, illiteracy, procedural delays, and low institutional coordination, which hinder benefit access, especially for marginalized farmers. Simplifying registration, improving coordination, and promoting literacy are vital for enhancing uptake and overall livelihood outcomes. These findings underscore that while cash aid is necessary, complementary measures are essential for sustainable agricultural transformation.