Evaluate the performance of PM KISAN in easing the cash crunch faced by the farming community.

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), launched in February 2019, is a central sector scheme with 100% funding from the union government.

Highlights of the scheme:

• The central government transfers an amount of Rs.6000 per year in three equal installments directly to all land holding farmers.
• The scheme is implemented by the Ministry of Agriculture and Farmers Welfare.
• The identification of eligible farmers is done by the state governments.

Benefits of the scheme:

• The objective is to augment the financial needs of small and marginal farmers and protect them from falling in the hands of moneylenders.
• The direct transfer of funds under this scheme has significantly reduced the chances of leakage and corruption.
• This scheme helps to ease the liquidity constraints of farmers in procuring inputs for agriculture.
• The scheme will help in modernisation of agriculture and reduce rural-urban gap.

Performance of the scheme:

• The scheme is being seen by some as a political tool, as even the well-off farmers are included in the scheme.
• There are several cases of exclusion, especially in Uttar Pradesh, Haryana and Rajasthan.
• The target and the reach of the scheme is being criticised as the severity of cash crunch is much more for casual workers and daily wage earners than land holding farmers.

Way forward:

Despite the criticism, PM-KISAN is an ambitious scheme of the government and has potential to increase the welfare of farmers. However, a bottom up approach for improving the incomes of farmers and making them self-reliant is the need of the hour.

Topics: GS-III: Indian Economy Issues Relating to Planning • GS-III: E-Technology in the Aid of Farmers