Syllabus
GS III: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices.
Context
Over the years, both the number of beneficiaries and the Budget allocation for the PM-Kisan scheme have shown a declining trend.
PM-Kisan Samman Nidhi Scheme (PM-KISAN)
Introduction
The PM-Kisan Samman Nidhi is a Central Sector scheme launched by the Indian government. It provides income support to landholding farmer families. Under this scheme, eligible farmers receive ₹6,000 per year in three equal installments. The funds are directly transferred to their bank accounts. The scheme has been operational since December 2018, and the 17th installment was released in June 2024. Farmers can complete eKYC through the PM-KISAN Portal or nearby CSC centers.
PM-KISAN Scheme
- Income Support: The scheme provides an income support of ₹6,000 per year to all eligible farmer families across India. This amount is distributed in three equal installments of ₹2,000 each every four months.
- Family Definition: The family unit for the scheme includes the husband, wife, and minor children.
- Beneficiary Identification: The responsibility of identifying eligible farmer families lies with the State and Union Territory (UT) governments.
- Direct Fund Transfer: The funds are directly transferred to the beneficiaries’ bank accounts.
Key objectives of the PM-KISAN Scheme
- Boosting Income for Small and Marginal Farmers:
- The scheme aims to enhance the income of Small and Marginal Farmers (SMFs) during the current fiscal year.
- By providing direct financial support, it helps improve their livelihoods.
- Addressing Financial Inclusion:
- PM-KISAN focuses on meeting the financial needs of SMFs.
- It facilitates the procurement of essential inputs for better crop health and yields.
- Ensuring Sustainable Farming Income:
- The scheme prevents SMFs from relying on moneylenders for agricultural expenses.
- By doing so, it promotes sustained engagement in farming activities.
Key features of PM-KISAN Scheme
- Scope and Scale:
- The program aims to benefit approximately 12 crore small and marginal farmers.
- It boasts an impressive annual budget allocation of ₹75,000 crore.
- Direct Benefit Transfer (DBT):
- Each PM-KISAN beneficiary receives the allocated amount directly into their bank account.
- The disbursement occurs in three tranches, with each tranche amounting to ₹2,000.
- Direct transfer eliminates intermediaries and ensures transparency.
- Ensured Income:
- PM-KISAN’s primary goal is to provide a minimum income to farmers.
- Eligible farming families receive ₹6,000 in three equal installments every four months.
- Flexible Fund Utilization:
- Beneficiaries have autonomy in using the funds received.
- They can allocate the money for various needs related to farming and livelihood.
- Central Government Funding:
- All funds for the PM-KISAN program come directly from the central government.
- Initially, the program was allocated ₹75,000 crore annually.
- State Participation:
- State and Union Territory administrations identify beneficiaries.
- The Government of India provides the necessary funding.
- Mandatory Aadhaar Requirement:
- To benefit from the scheme, Aadhaar data is essential.
- Beneficiaries without Aadhaar can enroll at their nearest Common Service Centre (CSC).
- Centralized Call Center Support:
- A dedicated call center assists beneficiaries.
- It addresses registration issues and grievances.
- Annual Physical Verification Requirement:
- To ensure scheme authenticity, an annual physical verification is mandatory.
- This process enhances verification robustness.
Eligibility criteria for PM-KISAN Scheme
- Eligible:
- Small and marginal farmers qualify for PM-KISAN.
- Farmer families owning cultivable land can apply for scheme benefits.
- Beneficiaries must be Indian citizens.
- Not Eligible (The following categories are excluded):
- Persons holding or retired from constitutional posts.
- Former and present Ministers/State Ministers.
- Members of Lok Sabha/Rajya Sabha/State Legislative Assemblies/State Legislative Councils.
- Former and present Mayors of Municipal Corporations.
- Former and present Chairpersons of District Panchayats.
- Serving or retired officers and employees under Central/State Government Ministries/Offices/Departments.
- Retired pensioners receiving a monthly pension of ₹10,000 or more.
- Individuals who paid income tax in the last assessment year.
- Professionals (Doctors, Engineers, Lawyers, Chartered Accountants, and Architects) registered with professional bodies.
Benefits of PM-KISAN Scheme
- DBT Advantages:
- Leveraging Direct Benefit Transfer (DBT), the scheme eliminates intermediaries and ensures direct fund transfers.
- This streamlined approach enhances transparency and efficiency.
- Inclusive Coverage:
- Regardless of land holdings, the program reaches every farmer family across the nation.
- Comprehensive coverage ensures equitable distribution of benefits.
- Digital Transformation:
- Farmer-related records are systematically maintained on an official digital platform.
- Digitization simplifies registration and facilitates seamless fund transfers.
- Enhancing Farmer Liquidity:
- PM-KISAN alleviates liquidity constraints faced by farmers.
- It empowers them to manage agricultural expenses, allied activities, and domestic needs more flexibly.
- Greater Coverage: The scheme covers all farmer families in the country, regardless of land size.
- A Step Toward Agricultural Reform: PM-KISAN introduces new systems and reforms across the agriculture sector, from seed to market.
Progress of PM-KISAN Scheme
- Extensive Outreach and Inclusion:
- Over 11 crore farmers nationwide have accessed the scheme, highlighting its broad reach.
- The active involvement of over 3 crore women farmers emphasizes gender inclusivity and empowerment.
- Agricultural Census Insights (2015):
- India has 14.5 crore agricultural holdings, with 85% (12.5 crore) being smaller than two hectares.
- The government aims to provide ₹6,000 annually to all 14.5 crore farming families.
- This would require a budget allocation of ₹87,000 crore or ₹75,000 crore for small and marginal holdings.
- Decreasing Installment Trend:
- Stricter verification processes may contribute to the decrease in installments.
- The scheme’s budget allocation declined from ₹75,000 crore (2019-20) to ₹58,254 crore (2022-23) and is around ₹20,000 crore for 2024.
- Underutilization of funds indicates administrative inefficiencies.
- The decline in beneficiaries highlights challenges in fully supporting farmers.
State-specific schemes similar to the PM-KISAN
- KALIA (Krushak Assistance for Livelihood and Income Augmentation):
- Odisha: Provides ₹5,000 twice a year to farmers (totaling ₹10,000 annually).
- Aims to enhance livelihoods and income for agricultural households.
- Bhavantar Bhugtan Yojana:
- Madhya Pradesh: Bridges the gap between Minimum Support Prices (MSPs) and market prices.
- Offers relief to farmers by compensating for price fluctuations.
- Rythu Bandhu Scheme:
- Telangana: Provides ₹4,000 per acre for every season to all farmers in the state.
- Similar initiatives exist in Jharkhand and Odisha.
Challenges related to the PM-KISAN Scheme
- Insufficient Financial Support:
- The scheme’s effectiveness relies on substantial financial aid.
- Ensuring farmers have purchasing power for daily needs is crucial.
- Notably, the cash transfer is not tied to land size.
- Limited Reach to All Farmers:
- Despite pro-poor objectives, PM-KISAN benefits recipients who were relatively better off even before the lockdown.
- Concerns arise about inclusivity among the broader rural population.
- Exclusion of Landless Farmers:
- The scheme’s criteria exclude impoverished rural households without land ownership.
- This limitation affects its scope.
- Implementation Challenges:
- PM-KISAN’s top-down implementation approach neglects governance constraints.
- Effective execution faces challenges.
- Structural Concerns: Shifting budgetary allocations toward cash transfers may impact long-term commitments in agricultural markets and infrastructure areas like irrigation.
- Limited Pro-Poor Impact: Questions arise about the scheme’s pro-poor nature, as recipients may already be relatively better off.
- Budgetary Shifts: A decisive shift toward cash transfers could affect commitments in other sectors.
- Fraudulent Claims: Inadequate measures against fraudulent claims threaten the scheme’s integrity.
- Environmental Impact: Rationalizing subsidies must consider environmental effects.
Way forward
- Define Farmers:
- Precise definition of “farmers” is crucial for effective implementation. Central and State governments should clearly define eligibility criteria.
- Shift to Direct Income Support:
- Move away from traditional input subsidies to direct income support. This allows farmers flexibility in investment decisions, promoting sustainability.
- Timing Impact on Investments:
- Research shows that PM-Kisan disbursement timing affects fund utilization. Peak seasons encourage agricultural investments, while off-season disbursements tend toward consumption.
- Spending Patterns Variation:
- Marginal and small farmers use funds differently. Tailored approaches are needed to maximize scheme impact.
- Improvement Recommendations:
- Seasonal Disbursement: Align with farmers’ seasonal needs for effective agricultural investments.
- Inclusion of Tenant Farmers: Extend the scheme to include tenant farmers without land ownership records.
- Land Records Management: Digitize land records for accurate and timely fund disbursement.
- State Financial Contribution: Encourage States to contribute for wider reach and impact.
Conclusion
Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme plays a crucial role in supporting India’s farmers. By providing direct income support, aligning disbursement with seasonal needs, and including tenant farmers, the scheme can enhance agricultural sustainability. Digitized land records and state financial contributions further strengthen its impact. As India continues to prioritize its agricultural sector, PM-Kisan remains a vital lifeline for millions of farmers, fostering growth and resilience.
Source: The Hindu
Related PYQ
Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). [UPSC Civil Services Exam – 2016 Mains]
Practice Question
What are the impacts of implementing the PM-Kisan scheme for small and marginal farmers in India, and what measures can ensure its long-term effectiveness and sustainability? [250 words]