Pradhan Mantri Kisan Samman Nidhi (PM KISAN) is a welfare package announced for farmers, in the Union Budget 2019. PM-KISAN is a direct annual income support scheme for farmers with land holding less two hectares (5 Acres). An amount of Rs 6,000 per annum will be provided to farmers eligible under the scheme. As per estimates, 12.56 crores farmers are to be covered under PM-KISAN scheme. Rs. 75,360 crore is allocated for the scheme for Financial year 2019-20. The PM-KISAN will come into effect retrospectively from December 1, 2018 and for FY 2018-19, Rs. 20,000 crore will be budgeted within the revised estimates for direct benefit transfer (DBT). The scheme that is totally funded by central government will transfer the amount directly to the account of the farmer in three instalments per year. Tenant farmers will not be covered under the Pradhan Mantri Kisan Samman Nidhi scheme.
PM KISAN is the new addition to the different welfare and support schemes announced to farmers by the earlier governments. Minimum Support Price (MSP), agricultural credit, farm loan wavers, interest subvention for agricultural loans, public spending in rural areas are some of the earlier schemes announced at central level. Rythu Bandhu scheme (Farmers’ Investment Support Scheme) implemented by the Telangana government is the first direct farmer welfare support scheme in the country. Under the scheme, cash is paid directly to farmers to support investment for two crops, the rabi and kharif seasons, a year. In this scheme, eligibility is arrived at on amount per acre basis without any holding ceiling. Pradhan Mantri Kisan Samman Nidhi is a modified version of Rythu Bandhu scheme. The scheme is also similar to Odisha’s Kalia scheme
According to interim finanace minister, PM-KISAN is aimed at supporting small and marginal farmers to avoid indebtedness and achieve the goal of doubling farmer's income by 2020. PM-KISAN is basically an income supporting scheme rather than a scheme to take care of pre-production costs of the farmer. The government has also announced Rashtriya Kamdhenu Aayog to take care of upgradation of cow resources.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Vs farm loan waiver
Of the various schemes by the government, a farm loan waiver is considered as the worst way to address the agrarian distress. Farm loan waiver acts as an incentive for farmers to default in respect of loans from scheduled commercial banks. According to economists and bankers delinquencies in the period after the debt waiver increases significantly in agricultural credit. The number of new borrowers also increased after the waiver. Direct income support under Pradhan Mantri Kisan Samman Nidhi will not adversely impact the banking system which is already saddled with huge non-performing assets. At the same time, the DBT under PM Kisan will act as a catalyst to boost rural consumption and Gross Domestic Product(GDP). Though around 60 % of the total work force is engaged in agriculture in India, the contribution from the segment to GDP has come down to a level of 17-18 percent of GDP. However, roll out of the PM-KISAN scheme is not easy and carries lot of challenges as disbursement depends on availability of proper land records. Further, the scheme may lead to fragmentation of land holding.
Who is a small and marginal farmer covered under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)?
As of now categorization of farmers on the basis of land holding is as mentioned below:
Marginal farmer – upto 1 hectare
Small farmer – 1-2 hectares
Semi Medium farmer – 2-4 hectares
Medium farmer – 4-10 hectares
Large farmer – 10 hectares and above .
Of these marginal and small farmers with cultivable land holding less than 2 hectares will be covered under PM-KISAN.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and election
In an election year, the government is trying to regain the support lost due to demonetitsation and GST implementation. Through many schemes announced in the interim budget like PM-KISAN, Pradhan Mantri Shram Yogi Maandhan Scheme (PMSYM), increased rebate under section 87A of Income Tax Act, waiver of notional rent for second house etc government is trying to woo small and marginal farmers, workers in the unorganised and informal sector and middle class employee segment.