• UGI USER
  • Jan 03, 2024
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THE PM-KISAN MODEL

(ENHANCING DIRECT INCOME SUPPORT)

 

Syllabus:

  • GS3 : Issues related to Direct and Indirect Farm Subsidies.

Why in the News?

  • The Indian government is actively working on a “saturation drive” to expand the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme, aiming to reach approximately 8.75 crore beneficiaries, up from the current 8.12 crore.
  • While the scheme’s goal of providing direct income support to farmers is commendable, there is room for refinement within its framework.
Source: The Hindu

Per-Acre Basis Proposal:

  • Consideration of providing DIS on a per-acre basis, akin to Telangana’s Rythu Bandhu scheme, where farmers receive up to Rs 12,000 per acre annually.
  • Potential benefits for larger farmers who bear higher agricultural expenditures.
About PM-KISAN

·   The scheme involves the direct transfer of Rs 6,000 annually, distributed in three equal installments, to the bank accounts of all landholding farmers.

·   Launched in February 2019.

Funding and Implementation:

·   It operates as a Central Sector Scheme with full funding provided by the Government of India.

·   The Ministry of Agriculture and Farmers Welfare oversees its implementation.

Identification of Beneficiaries:

·   The State / UT Governments bear the responsibility of identifying beneficiary farmer families.

Objective:

·   Aims to supplement the financial needs of Small and Marginal Farmers for acquiring various inputs to ensure optimal crop health and yields.

·   Seeks to protect farmers from reliance on moneylenders for expenses, ensuring their sustained involvement in farming activities.

Possible Refinements: Addressing Disparities

Per-Acre Basis for DIS:

  • Exploring the possibility of providing DIS on a per-acre basis, as exemplified by Telangana’s Rythu Bandhu scheme, offering farmers up to Rs 12,000 per acre annually.
  • This approach may address concerns about favouring larger, potentially wealthier, farmers over smallholders.

Limiting Per-Acre Payments:

  • Proposing a limit, perhaps up to 10 acres, for per-acre DIS payments under PM-Kisan.
  • This measure aims to strike a balance and prevent disproportionate benefits to large landholders

 State Government Role:

  • Encourage state governments to supplement PM-Kisan by providing additional DIS on a per-acre basis.
  • Empower state-level customization based on regional agricultural needs.

Support for Middle-tier Farmers:

  • Recognizing the vital contribution of middle-tier farmers to India’s agriculture and national food security.
  • Proposing state governments supplement the Rs 6,000 PM-Kisan payment with an equivalent per-acre transfer to provide additional support to these middle-tier farmers.

Financial Implications and Funding:

1. Ending Market-Distorting Subsidies:

  • Advocate for the cessation of market-distorting subsidies, encompassing farm inputs (fertilizer, electricity, water) and output (government grain procurement at high support prices).
  • Redirect savings from these subsidies toward enhancing PM-Kisan and state-level DIS initiatives.

2. Budgetary Considerations:

  • Considering the staggering budget of Rs 1,75,100 crore for the Centre’s fertilizer subsidy alone.
  • Exploring the possibility of distributing these savings among the projected 8.75 crore PM-Kisan beneficiaries, translating to over Rs 20,000 per farmer.

 3. Illustrative Savings:

  • Highlight potential savings from other state-level subsidies to reinforce the financial feasibility of transitioning to a per-acre payment model.

Advantages of PM-KISAN Scheme:

  • Direct Fund Transfer:
  • PM-Kisan stands out for its direct income support (DIS) program, where every eligible landowning farmer receives a flat Rs 6,000 annually in three equal instalments.
  • On December 25, 2020, Rs.18,000 crores were directly transferred to the bank accounts of 9 crore farmers in the presence of the PM .
  • Digitalized Records:
  • All farmer-related records are officially registered on a digital platform.
  • Streamlines the registration process and facilitates easy fund transfers.
  • Ease of Liquidity Constraints:
  • The scheme addresses liquidity constraints faced by farmers, providing financial support directly to their bank accounts.
  • Modernization of Agriculture:
  • PM-KISAN yojana aligns with the Government’s initiatives for the modernization of agriculture.
  • Represents a substantial step toward enhancing the agricultural sector.
  • Non-Discrimination:
  • The selection of PM-KISAN beneficiaries is free from any form of discrimination irrespective of the crops grown, quantities produced, or sales strategies employed by individual farmers.
  • Ensures equitable distribution of benefits among eligible farmers.

Technological Intervention:

  • PM-KISAN Mobile App:
  • The National Informatics Centre, in collaboration with the Ministry of Electronics and Information Technology, has developed the PM-KISAN Mobile App.
  • Allows farmers to track their application status, update or correct Aadhaar cards, and review the history of credits to their bank accounts.
Other Schemes for farmers in India

·   PM Fasal Bima Yojana (PMFBY):Crop insurance scheme aimed at providing financial protection to farmers against crop losses.

·   National Food Security Mission (NFSM):Aims to enhance food grain production and ensure food security through increased productivity and sustainable agriculture practices.

·   Rashtriya Krishi Vikas Yojana (RKVY):Supports states in their efforts for increasing agriculture and allied sector productivity.

·   Paramparagat Krishi Vikas Yojana (PKVY):Encourages organic farming practices and certification among farmers.

·   Pradhan Mantri Krishi Sinchai Yojana (PMKSY):Focuses on improving water use efficiency and ensuring access to irrigation for farmers.

·   National Mission for Sustainable Agriculture (NMSA):Promotes sustainable agriculture practices, soil health management, and water use efficiency.

·   Interest Subvention Scheme for Short Term Crop Loans: Provides interest rate subvention to farmers for short-term crop loans.

·    Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY):Aims to secure the lives of small and marginal farmers by providing a minimum pension after attaining the age of 60.

·   Kisan Credit Card (KCC) Scheme: Provides farmers with short-term credit for agricultural needs, ensuring timely and adequate credit support.

·   National Crop Insurance Programme (NCIP):Works towards providing comprehensive risk coverage and financial support to farmers in the event of crop failure.

Challenges and Future Perspectives:

1. Political Will :

  • Acknowledge the challenge of shifting from per-farmer to per-acre payments and the need for unwavering political will.
  • Emphasize that the upcoming government post the April-May 2024 elections must prioritize this transformation.

2. Economic Viability:

  • Highlight the economic viability of the proposed model by emphasizing potential savings and increased efficiency in resource allocation.
  • Stress the importance of aligning financial strategies with the broader goal of sustainable agricultural development.

The PM-Kisan model’s focus on direct income support is a positive step, but refinements can enhance its impact. Transitioning to a per-acre payment structure, capping payments, and redirecting funds from market-distorting subsidies present a compelling path forward. The success of these proposals hinges on the government’s commitment to balancing inclusivity with targeted support, ensuring a sustainable and equitable future for Indian agriculture.

 

 

Source: 

https://indianexpress.com/article/opinion/editorials/express-view-on-the-pm-kisan-model-not-the-way-forward-9088031/lite/

Mains Practice Question:

Analyze the proposal of shifting from per-farmer to per-acre Direct Income Support (DIS) for farmers under PM -KISAN scheme, considering its advantages and potential challenges.