Context: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which provides yearly income support of ₹6,000 to eligible farmer families in three installments, has been through highs and lows both in terms of coverage and payout.
Relevance of the topic:
Prelims: Questions regarding PM-KISAN scheme.
Mains: Analytical question on schemes, their impact, lacunae and suggestions.
About PM KISAN
- Pradhan Mantri Kisan Samman Nidhi (PM KISAN) scheme launched in 2018 provides an annual income support of Rs. 6000/- to eligible farmers in three installments.
- Intended beneficiaries:
- Originally, landholding farmers having a farming area up to 2 hectares were eligible for the scheme (around 80% of farmers in India).
- Later, in 2019 the scheme was extended to all farmers who owned land, irrespective of the size of their landholdings.
- Expected outcomes from scheme:
- Income support: The scheme was intended to benefit 14.5 crore farmers by providing them income support of Rs. 6000 annually.
- Reduction in farm distress by creating a buffer for the farmers during negative externalities like drought and crop failure.
- Poverty alleviation: As 22% of Below poverty line are farmers (Situation Assessment Survey), income support will reduce poverty burden on farmers.
- Demonstrating commitment towards farmers' benefit and doubling farmer’s income.
Key Challenges in the Scheme Implementation
- Does not address structural problems such as fragmentation of land holdings, higher dependence on monsoonal rainfall, poor marketing infrastructure (APMCs) etc. and hence, PM-KISAN is populist rather than reformist.
- Promote Fragmentation of Landholdings: Farming households holding larger land parcels will try to split holdings to try to qualify for the benefits under the scheme.
- Exclusionary: Excludes the landless agricultural workers, tenants, and sharecroppers.
- Absence of land records may lead to exclusion of poor and vulnerable categories of farmers.
- Inadequate financial support: The scheme offers Rs. 6000/- per annum to farmers equates to Rs. 17 per day per household that is substantially low to achieve goals like alleviation of farm poverty.
- Under-utilised corpus: The fund allocated for the scheme was around Rs. 85000 crores but it remained under utilised since launch of scheme. The scheme witnesses fluctuating beneficiaries, also the number is reducing from 2021-22 to 2023-24.
- Substandard than state schemes: Many state schemes like Telangana’s Rythu Bandhu and Odisha’s Kalia scheme provide better income support to farmers than the PM Kisan scheme, leading to limited enrollment of farmers.
Suggestive Measures for better Implementation
- Increasing support amount: The scheme can explore increasing support to promote enrollment in the scheme on the lines of Rythu Bandhu and Kalia scheme of states.
- Expand beneficiary coverage: Scheme should increase coverage by adding landless tenants with substantial proof of tenancy agreement in scheme.
- Adding benefits: Apart from income support, the scheme can be drafted as an umbrella support extending to medical expenses, crop insurance and credit assurance scheme rationalising other schemes in PM KISAN.
- Strengthening implementation: Digitisation of land records and using digital records for identification of beneficiary can improve impact of scheme at ground level.
Conclusion: The PM-KISAN scheme, while a significant step toward supporting small and marginal farmers, requires increased financial aid, broader beneficiary inclusion, and efficient implementation for maximum impact. With effective execution, it can reduce farmer distress, boost rural economies, and enhance agricultural productivity, fostering socio-economic development in India's agrarian landscape.