Source: Express View on the PM-Kisan model: Not the way forward, Indian Express, December 30, 2023
- Saturation Drive for PM-Kisan: The government is intensifying efforts to expand the reach of the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme, aiming to include approximately 8.75 crore farmers, up from the current 8.12 crore beneficiaries.
- Inclusive Support for Farmers: Extending coverage under PM-Kisan is pivotal both politically and economically. The scheme’s notable aspect is its direct income support (DIS) approach, providing every farmer with a flat Rs 6,000 annually in three equal installments, regardless of crop type, quantity, or selling modalities.
- Equitable Support Across Farming Practices: The flat Rs 6,000 payment doesn’t discriminate based on farming inputs or practices, whether conventional or organic. This ensures a non-market-distorting subsidy that supports all farmers engaged in cultivation.
Refinements in Agricultural Support Schemes
- Per-Acre Basis for Income Support: Exploring refinements within PM-Kisan, considerations are given to providing income support on a per-acre basis rather than per farmer. Models like Telangana’s Rythu Bandhu scheme, which offers up to Rs 12,000 per acre per year, present alternative approaches.
- Addressing Disparities in Support: Adjusting the Rs 6,000 annual payment to a per-acre basis, capped at a certain limit, could mitigate concerns regarding the disparity between large and smallholder farmers. Such adjustments acknowledge the contributions of “middle farmers” and their crucial role in agricultural production and food security.
Funding Mechanisms and Policy Adjustments
- Redirecting Subsidies for Farmer Benefits: Transitioning from per-farmer to per-acre payments under PM-Kisan requires re-evaluating existing agricultural subsidies. By eliminating market-distorting subsidies on inputs and outputs, substantial funds can be reallocated to support schemes like PM-Kisan and state-level DIS initiatives.
- Potential Financial Reallocation: For instance, redirecting funds from the fertiliser subsidy alone, which amounts to Rs 1,75,100 crore, could significantly bolster support for PM-Kisan beneficiaries. With similar adjustments at the state level, financial constraints can be alleviated, provided there’s sufficient political will to implement these changes.