Pradhanmantri Kisan Samman Nidhi Yojna

Pradhanmantri Kisan Samman Nidhi Yojna

A big takeaway of the interim Budget is the ambitious scheme, Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), which aims to placate small farmers by offering Rs 6,000 per year. But it was on the cards. However, it is uncertain how would it help farmers, who are suffering because of low income, or the government, which has rolled out the scheme with an eye on the forthcoming general election.

The good things first. The PM-Kisan is at least a palliative, albeit, a weak one. The Rs 6,000 benefit will be available to farmer families with cultivable land up to two hectares. Finance Minister Piyush Goyal said, “This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal installments of Rs 2,000 each. This programme will be funded by government of India. Around 12 crore small and marginal farmer families are expected to benefit from this.”

Pradhanmantri Kisan Samman Nidhi Yojna Key Features

1. Government announced fixed yearly income for small and marginal farmers.
2. This scheme will benefit about 12 crore farmers who have 2 Hectare land.
3. Rupee 6000 per year direct cash transfer in their account.
4. Cash transfer will be given in three equal installments of Rs 2000 each. 
5. The benefit under this yojna will be given retrospectively from December 2018.
6. Rs. 75000 crore allotted for this scheme.
7. It is expected to double the farmers income.

Further, he said, the outlay would be “of Rs 75,000 crore for the FY 2019-20 and Rs 20,000 crore in the Revised Estimates of FY 2018-19.” Which means that farmers would benefit this fiscal as well. The PM-Kisan is at least better than farm loan remissions announced by several state governments, for the waivers are morally indefensible, fiscally ruinous, and economically untenable.

He had said, “To ensure that farmers get a larger share in the price of the produce paid by the consumer, the next government must complete the reform of the Agricultural Produce Marketing Committees Act in all areas, for all crops, and in all states. This requires giving greater play to the right to directly purchase and sell, facilitating the emergence of competing private marketing yards, expansion of contract farming, provision of cold storage facilities and the building of supply chains.” None of this appears in the interim Budget.