UPSC MAINS 2019 : Extension Of PM-KISAN Scheme To All Farmers

Extension Of PM-KISAN Scheme To All Farmers

Topic : Extension Of PM-KISAN Scheme To All Farmers

Topic in Syllabus : General Studies Paper 3: Schemes & Programmes

 

Context :

Extension Of PM-KISAN Scheme To All Farmers

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the  extension of PM-KISAN scheme to all 14.5 Crore farmers across the country. This would essentially mean an extended benefit of Rs. 6000 per year under PM-KISAN scheme to all the farmers in the country. This extension will cost around a total of Rs. 87,000 Crore a year.

 

Background:

  • Pradhan Mantri KisanSamman Nidhi (PM-KISAN) is a new income support scheme announced by the Union government.
  • Under the Pradhan Mantri KisanSamman Nidhi (PM-KISAN), every family owning not more than two hectares of cultivable land is entitled to receive Rs 6,000 per year via direct benefit transfer.
  • It is likely to cover 12 crore small and marginal farmers and has annual budgetary allocation of Rs 75,000 crore.
  • Each smallholder is entitled to receive the amount in a bank account in three tranches of Rs 2,000 each.

 

Revised scheme:

  • Pradhan Mantri KisanSamman Nidhi (PM-KISAN) extended to all the farmers in the country.
  • The revised Scheme is expected to cover around 2 crore more farmers, increasing the coverage of PM-KISAN to around 14.5 crore beneficiaries, with an estimated expenditure by Central Government of Rs. 87,217.50 crores for year 2019-20.

 

Advantages:

  • The delivery of direct transfers is relatively easy and transparent as witnessed in subsidy transfers in bank accounts. The PM-KISAN is also very efficient compared to loan waiver or MGNREGA.
  • PM-KISAN will prove more transparent and efficient in solving the farming crisis in the country and end the rural distress.
  • pull people out of poverty which is more prevalent in rural areas, and end woes of farmers.
  • Now almost 14.5 crore families would benefit which is around 97 percent of total farming families of the country.

 

Disadvantages:

  • Tenant farmers who hold no land are excluded from the benefits of the scheme.
  • The situation is slightly more complicated in the north eastern States, as land ownership rights in the region are community-based, making it difficult to identify beneficiaries.
  • PM-KISAN can increase opportunity costs of critical (human) resources, operational risks and, eventually, shoot up operating expenses and strain the fiscal health of concerned states.

 

Way Forward:

  • Centre should focus on creating an enabling environment through responsive bureaucracy legal compliance, easing of doing business, market infrastructure, and trade facilitation.
  • Underwriting processes related to crop loss assessment and claim payout need to be authentic and fastened by insurance agencies at the auspices of state governments.
  • From a rational viewpoint, farmers need to utilize agricultural inputs (land, water, crop protection chemicals) efficiently, and also allocate capital and farm resources to the market-led production schedule.
  • The Centre should allow public and private institutions and market agencies to render services to the farm sector at a fair price.
  • Government must realize that its goal should reduce poverty, ensure sustainable food security, and inclusive growth and wellbeing of farmers.

 

Sample Question

Do You think extending the PM KISAN scheme provides solution to farmers problems? Analyse.

 


 

PM-KISAN Scheme infograph