Pradhan Mantri Kisan Samman Nidhi (PM-Kisan)

Source: Indian Express
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The Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) is a 100 per cent centrally funded scheme under which Rs 6,000 is transferred in three equal instalments to eligible farmer families in a year.
It was implemented from December 1, 2018, when the first installment for December-March, 2018-19 was released.

The money is transferred to the bank accounts of beneficiaries through the Direct Benefit Transfer (DBT) mode.
According to scheme guidelines, state governments are required to send correct and verified data of farmers, which State Nodal Officers (SNOs) authenticate and upload to the scheme portal in batches.
Based on the verified data, SNOs sign the Request For Transfer (RFT), with the total number of beneficiaries.
The Public Finance Management System (PFMS) then issues a Fund Transfer Order (FTO) based on which the Department of Agriculture, Cooperation & Farmers Welfare in the central Ministry of Agriculture & Farmers Welfare issues the transaction order for the mentioned amount.

The government is intensifying efforts to expand the reach of the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) to approximately 8.75 crore farmers, an increase from the current 8.12 crore beneficiaries.
The PM-Kisan program, a direct income support initiative, provides every eligible landowning farmer in India with a flat annual payment of Rs 6,000 in three equal instalments.
The payment is regardless of the crops grown or selling practices.
This non-market-distorting subsidy accommodates both chemical and organic farming methods.
While the overall structure of PM-Kisan is commendable, there is room for refinements, such as transitioning from a per-farmer to a per-acre basis for income support.

The Rythu Bandhu scheme in Telangana, offering farmers up to Rs 12,000 per acre per year, has been criticized for allegedly favouring wealthy farmers.
However, larger holdings and increased crop cultivation entail higher expenditures, justifying additional support for such farmers who rely more on agricultural income.

One suggestion is to limit the Rs 6,000 annual payment under PM-Kisan to a per-acre basis, up to a specified acreage limit, to address concerns of inequality among farmers.
To fund the shift to per-acre payments, the government could consider redirecting resources by eliminating market-distorting subsidies on farm inputs and outputs.
For instance, the substantial fertiliser subsidy, budgeted at Rs 1,75,100 crore, could be reallocated to PM-Kisan, providing over Rs 20,000 per farmer if distributed among the projected 8.75 crore beneficiaries.
By prioritizing political will over financial constraints, the government elected after the 2024 elections can navigate this challenge and enhance the effectiveness of income support for farmers.

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