PM-KISAN Scheme: Direct Income Support for Farmers
The release of the 23rd instalment of PM-KISAN, amounting to ₹18,880 crore, serves as a critical entry point to analyze the efficacy of Direct Benefit Transfers (DBT) in addressing agricultural distress and its role in India's broader subsidy architecture.
What happened
The latest PM-KISAN instalment release isn't just a news event; it's a live case study on the shift from price-based subsidies to direct income support in agriculture. For a UPSC aspirant, this is a crucial opportunity to evaluate the Direct Benefit Transfer (DBT) model's effectiveness in tackling rural distress, its fiscal implications, and its alignment with the goal of doubling farmers' income.
PM-KISAN represents a significant policy shift from indirect, price-distorting subsidies (like on fertilizers or power) to direct income support.
●Its core features are its status as a Central Sector Scheme (100% funded by the Union Government), its universal applicability to all landholding farmer families irrespective of land size (post-2019 revision), and its reliance on the DBT framework.
●Key implementation challenges include the identification of beneficiaries, which hinges on updated and digitized land records, and the exclusion of landless agricultural labourers.
●The scheme's adequacy is also debated, with ₹6,000 per year forming a small fraction of a farm household's total consumption expenditure, but it provides crucial liquidity during sowing seasons.
PM-KISAN is a Central Sector Scheme providing direct income support of ₹6,000/year to all landholding farmer families, implemented via DBT.
◎ In Simple Words
Imagine the government giving small farmer families some pocket money three times a year to help them buy seeds, fertilizers, and other things for their farms. This scheme, called PM-KISAN, sends ₹2,000 directly to their bank accounts each time, totaling ₹6,000 a year. The recent news is that another round of this money has just been sent out. This direct payment system helps ensure the money reaches the right people without anyone taking a cut in the middle.
Factual Pointers
Practice · 2 questions
With reference to the PM-KISAN scheme, which of the following statements is/are correct?
1. It is a Centrally Sponsored Scheme where the cost is shared between the Centre and States.
2. The scheme is applicable only to small and marginal farmers with landholdings up to 2 hectares.
3. It provides a financial benefit of ₹6,000 per annum, disbursed in three equal instalments.
The implementation of the PM-KISAN scheme primarily relies on which of the following for the identification and financial transfer to beneficiaries?
Mains Practice Questions
PM-KISAN represents a paradigm shift from price support to income support in Indian agriculture. Critically evaluate the effectiveness of this approach in alleviating agrarian distress.
While the Direct Benefit Transfer (DBT) mechanism underlying PM-KISAN enhances transparency, its success is constrained by foundational issues like land record management. Discuss the key implementation challenges and suggest measures for improvement.
Compare and contrast the economic and social impacts of direct income support schemes like PM-KISAN with traditional input subsidies (e.g., fertilizer, power) in the context of doubling farmers' income.