Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

GS III-AGRICULTURE

Background & Context

• The PM-KISAN scheme, operational since December 1, 2018, is aimed at providing financial assistance to small and marginal farmers.
• Recently, concerns over alleged corruption in its implementation have been raised, particularly by the Tamil Nadu Cauvery Farmers’ Protection Association.
• The Government of India (GOI) reinstated 34 lakh farmers under the “saturation drive” after noticing a 20% drop in beneficiaries.

Nodal Ministry

• Ministry of Agriculture & Farmers’ Welfare oversees the scheme.

Objectives of PM-KISAN

1. Financial Support for Farmers: Helps in acquiring inputs for improved crop production.
2. Prevention of Debt Trap: Aims to protect farmers from falling into moneylenders’ debt cycle.
3. Boosting Rural Demand: Encourages higher consumption in rural areas.
4. Doubling Farmers’ Income: Aligns with GOI’s target to double farmers’ income by 2022.

Key Features of the Scheme

1. Income Assistance

• Eligible farmers receive ₹6,000 per year, disbursed in three equal instalments every four months.
• Initially, the scheme covered only small and marginal farmers (SMFs) with landholding up to 2 hectares, but was later expanded to all farmers, regardless of land size.

2. Flexibility in Usage

• No restrictions on how farmers utilize the financial assistance provided under the scheme.

3. Funding

• Fully funded by the central government.
• Initially allocated ₹75,000 crore annually, with funds transferred directly to beneficiaries’ bank accounts through DBT (Direct Benefit Transfer).

4. Beneficiary Identification

• State and UT governments are responsible for identifying eligible farmers.
• Definition of Family: Includes a husband, wife, and minor children.

Exclusions: Who is NOT Eligible?

Certain categories of individuals are excluded from availing benefits:

1. Institutional Landholders
2. Elected Representatives (Current & Former)
   • Holders of constitutional positions
   • Ministers, MPs, MLAs, MLCs, Mayors, and District Panchayat Chairpersons
3. Government Employees
   • Serving & retired State/Central government officials, PSU employees, and local body staff
4. Higher Income Groups
   • Pensioners receiving ₹10,000+ per month (excluding Class IV/MTS employees)
   • Individuals who paid income tax in the last financial year
5. Professionals (Practicing lawyers, doctors, engineers, architects, and CAs)

Performance & Significance of PM-KISAN

Positive Impact

1. Direct Cash Transfer ensures quick and transparent disbursal of funds.
2. Digital Records facilitate easy tracking & registration of farmers.
3. Equitable Distribution: No bias in beneficiary selection.
4. Agricultural Modernization: Supports GOI’s push for agricultural reform.
5. Research Findings (IFPRI Study):
   • Helps farmers overcome liquidity constraints.
   • Encourages adoption of modern crop varieties through Krishi Vigyan Kendras.
   • Strengthens farmers’ financial capacity & investment in agriculture (e.g., seeds, fertilizers, equipment).
   • Boosts rural economic growth.

Criticism & Challenges

1. Exclusion of Eligible Farmers

• Not all intended beneficiaries receive the benefits.
• Only 21% of surveyed cultivators confirmed receiving funds.
• Exclusion rates were higher in Uttar Pradesh than in Haryana & Rajasthan.

2. Not Inclusive of All Agricultural Workers

• Landless farmers & tenant cultivators do not qualify for the scheme.

3. Cash Transfers Not Indexed to Inflation

• Due to regional price fluctuations, cash assistance loses purchasing power over time.
• Example: Failure of DBT in Rajasthan where transferred funds couldn’t cover rising kerosene prices.

4. Operational & Administrative Challenges

• Land records reconciliation & digitization remain slow.
• Northeastern states face difficulty in identifying beneficiaries due to community-based land ownership.
• High administrative costs put pressure on state finances.

PM-KISAN Mobile App

• Developed by NIC in collaboration with MeitY.
• Enables farmers to:
  • Check application status.
  • Update Aadhaar details.
  • Track fund disbursals to their bank accounts.

Similar State-Specific Schemes

1. Bhavantar Bhugtan Yojana (Madhya Pradesh)

• Covers the gap between MSP (Minimum Support Price) and actual market prices.

2. Rythu Bandhu Scheme (Telangana)

• Provides ₹4,000 per acre per season to all farmers.

3. KALIA Scheme (Odisha)

• Offers ₹5,000 per season (₹10,000 annually) to small & marginal farmers.
• More complex in implementation than PM-KISAN.