PM Kisan Samman Nidhi Yojna

Introduction to PM Kisan Samman Nidhi Yojna

The PM Kisan Samman Nidhi Yojna scheme also known as PM Kisan Yojna was launched by the Government of India in February 2019. It is also written as Pradhan Mantri Kisan Samman Nidhi Yojna This scheme basically targets the small and marginal farmers in terms of giving them financial support by providing them direct income support so that they have money directly in their pockets. This feature makes it an ambitious initiative to enable small and marginal farmers to increase their purchasing power which in turn is a key ingredient for economic growth.

Objective:

The main aim of this scheme is to empower small and marginalized farmers to meet some financial needs in terms of household and agricultural expenses which in turn would contribute to the overall growth of the agricultural sector. With the help of Direct Benefit Transfer (DBT) system, all eligible farmers would receive ₹6,000 annually in three equal instalments of ₹2,000 each.

 There are conflicting views from experts regarding the feasibility and utility of such a scheme. E.g. according to P.Sainath, an agricultural expert “₹6,000 a year is a pittance compared to the rising input costs that farmers face. Without addressing the structural issues, PM-KISAN is merely a band-aid on a wound that requires much deeper healing.” According to Arvind Subramanian (Former Chief Economic Advisor, Government of India), “PM Kisan Samman Nidhi Yojna is a necessary but not sufficient step in addressing the agricultural distress in India. It must be part of a broader package of reforms aimed at improving the efficiency and competitiveness of Indian agriculture.”

In this article we will critically analyze the  key features, objectives, and overall impact on the agricultural community in India of Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna). Along with this, we will explore deep into the challenges and limitations of this scheme and also suggest potential improvements for greater efficacy.

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Key Features of PM Kisan Samman Nidhi Yojna Yojana (PM Kisan Yojna)

1. Direct Benefit Transfer (DBT): In this the Direct Benefit Transfer mechanism shall be used to transfer funds directly into the bank accounts of the beneficiaries. This would ensure the minimization of the risks associated with delays, leakages and possible corruption as all the intermediaries are eliminated.
2. Eligibility: Initially, the scheme was targeted at small and marginal farmers with cultivable land holdings up to 2 hectares. Since June 2019, the scheme was expanded to cover all farmer households, irrespective of their landholdings size, except for certain exclusion categories such as institutional landholders, income tax-paying farmers, and professionals (doctors, engineers, lawyers, etc.).
3. Financial Assistance: Through this scheme ₹6,000 per year shall be provided every year in three equal installments of ₹2,000. The primary intention is to provide a safety net to farmers and support their agricultural activities.
4. Universal Coverage: Around 14 crore (140 million) eligible farmers across India, are targeted to cover through the Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna). 
5. Simplified Registration Process: For easy disbursal of money simple and farmer friendly process is followed. All eligible farmers can apply through the PM-Kisan Portal or at Common Service Centers (CSCs). In order to ensure that only eligible farmers get benefitted, data will be verified through Adhar cards and land records.

More Points

1. Exclusion Criteria: Institutional landholders, serving or retired government employees, and professionals such as doctors, engineers, and lawyers are excluded from the benefits of the scheme (PM KISAN Yojna) as they dont require it. Thus the benefits are targeted only towards needy and small farmers.
2. State and Union Territory Collaboration: State Governments and Union Territories would collaborate with the Union Government for identifying and verifying beneficiaries through respective land records. Problems would occur in those states where the land records are not yet fully computerized.
3. Transparency and Accountability: Farmers can easily track their payments through the PM-Kisan Portal. The system also reduces the likelihood of fraud and errors.

Positive Impacts of PM Kisan Samman Nidhi Yojna

1. Income Support for Farmers:

PM Kisan Samman Nidhi Yojna (PM KISAN Yojna) is instrumental in providing the much-needed financial cushion for farmers, especially for small and marginal farmers who often face uncertain agricultural yields and fluctuating market prices. According to the government, while ₹6,000 annually may not cover the full cost of agricultural activities, it can serve as a critical lifeline for purchasing essential inputs like seeds, fertilizers, and irrigation equipment.

2. Reduction in Rural Poverty:

In a way the scheme contributes to poverty alleviation in rural areas it intends to provide as regular income. Farmers can avoid falling in debt traps and also free themselves from the clutches of moneylenders.

3. Reduction of Middlemen and Corruption:

As everything is supposed to be digital, the opportunities for corruption and leakages in the system shall be eliminated. The direct transfer of benefits through the DBT mechanism is designed specifically for such money transfers. As money goes directly into the beneficiaries’ bank accounts, it improves the scheme’s efficiency along with this it also ensures that the right people receive the funds.

4. Positive Impact During Crises:

During the COVID-19 pandemic, PM Kisan Samman Nidhi Yojna (PM KISAN Yojna)provided crucial support to farmers. COVID-19 pandemic disrupted supply chains and reduced agricultural income. The timely transfers through Direct Benefit Transfer mechanism helped farmers manage household expenses during the economic downturn and ensured that they had the necessary funds for the next planting season.

5. Wider Reach Post-Expansion:

The change in policy of expanding the scheme to benefit all farmers irrespective of their land size has increased the number of beneficiaries. With this all types of farmers have access to a reliable source of income, promoting equity across the agricultural sector.

6. Encouragement of Agricultural Activities:

In the face of economic uncertainty a small cash under PM Kisan Samman Nidhi Yojna (PM KISAN Yojna) , even small, will encourage farmers to enhance their agricultural activities. There shall be a motivation to make minor improvements in their farming techniques which in turn could yield long term benefits.

7. Ease of Access for Farmers:

Due to the simple, digitized registration process for PM-KISAN, coupled with the use of CSCs for offline applications, it has made it easier for farmers to register for the scheme. The scheme is secured through an Aadhaar-based verification process ensuring that the payments reach the correct beneficiaries.

Challenges and Limitations of PM Kisan Samman Nidhi Yojna

1. Insufficient Financial Support: PM Kisan Samman Nidhi Yojna

The most resounding criticism of PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), is that the amount of ₹6,000 per year is a pittance and is  insufficient to make a meaningful difference to the lives of farmers, especially given the high cost of inputs and unpredictable nature of agricultural income. Thus many argue that the amount must be significantly increased to make a real change in the lives of farmers.

2. Exclusion of Tenant Farmers and Sharecroppers: PM Kisan Samman Nidhi Yojna

The PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), mainly focussed on landholding farmers. Thus the needs of the most vulnerable sections of the agricultural economy i.e. tenant farmers, sharecroppers, and landless agricultural workers have not been addressed. Due to lack of legal ownership of land these sections who are in a greater need of financial assistance are left out.

3. Delays in Payment Disbursal: PM Kisan Samman Nidhi Yojna

Administrative bottlenecks like delays in land record verification, and technical glitches in the DBT system regularly delay the payments to farmers. The entire purpose of this scheme is undermined if timely financial support is not available to the farmers, especially during critical periods like planting or harvest seasons.

4. Limited Focus on Agricultural Productivity: PM Kisan Samman Nidhi Yojna

The PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), does not directly address issues related to agricultural productivity or sustainability. It solely focuses on financial assistance. The scheme does not incentivize farmers to adopt better farming practices, crop diversification, or water conservation techniques, which are essential for improving long-term agricultural output and sustainability.

5. Dependence on State Governments: PM Kisan Samman Nidhi Yojna

State governments are responsible for maintaining and updating land records, identifying beneficiaries, and ensuring timely transfers. Thus the success of PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), heavily depends upon the cooperation of state governments. Thus the implementation of this scheme has faced significant challenges where the states have weak administrative capacities or outdated land records.

6. Inclusion-Exclusion Errors: PM Kisan Samman Nidhi Yojna

There have been cases where ineligible people like income tax paying farmers and non agricultural individuals got benefited by the scheme despite the fact that there is a Adhar based verification system. The overall effectiveness of the scheme is undermined if ineligible individuals reap benefits and the really needy and eligible individuals are left out. 

7. No Mechanism for Inflation Adjustment:

The scheme was launched in 2019, but the amount of ₹6,000 per year has remained fixed. The factor of inflation has not been taken into account. In the last 5 years the purchasing power of farmers has significantly gone down. There is no mechanism for inflation adjustment in this scheme reducing its long term effectiveness.

8. Financial Burden on the Exchequer:

Since millions of farmers are under the beneficiary net, the PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), has put a burden of thousands of Crores on the Central Government. Moreover, the number of beneficiaries is increasing every year. Thus the sustenance of this scheme in the long run creates a lot of question marks as it will keep on adding burden to public finances.

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Impact Assessment of PM Kisan Samman Nidhi Yojna (PM KISAN Yojna)

Short-Term Impact:

The scheme (PM KISAN Yojna), has provided immediate short term financial relief to especially small farmers in the time of crisis. This has helped them in some way to continue farming instead of falling in the debt trap even though the amount is small.

Long-Term Impact:

The PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), though  ambitious, has an uncertain long term impact. The main problem with this scheme is that it does not address the structural challenges that Indian agriculture faces. It only provides for financial assistance. The scheme may not bring any long term changes unless it is accompanied with improvement in agricultural infrastructure, market access and sustainability. 

Recommendations for Improvement of PM Kisan Samman Nidhi Yojna

1. Increase the Amount of Financial Assistance: The financial assistance must be increased under the PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), to have a meaningful impact on the lives of farmers. Higher amounts will not only counter the inflation but also incentivise farmers to increase agricultural activities.
2. Include Tenant Farmers and Sharecroppers: Tenant farmers and sharecroppers should also be included in the scheme as they too are an integral part of the agricultural activities. By doing so the scheme will become more just, equitable and inclusive.                                   
3. Address Delays in Payments: Since timely payments are crucial for the success of this scheme, the administrative capacities of State governments must be augmented for improving verification process and timely disbursal of money.               
4. Link Payments to Agricultural Best Practices: The PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), can be linked by the government for adoption of sustainable agricultural practices such as crop diversification, organic farming and water efficient irrigation methods. By doing so farmers will have an incentive to improve their productivity while receiving financial support.    
5. Ensure Regular Updates to Land Records: State governments should be encouraged to update and maintain accurate land records as it is the most important ingredient for an effective implementation of the scheme. State governments should also on their part invest in digitizing land records and ensure that all eligible farmers are properly identified.                             
6. Introduce an Inflation Adjustment Mechanism:  The assistance provided under the  PM Kisan Samman Nidhi Yojna (PM KISAN Yojna), should be inflation adjusted. The financial assistance is the same since 2019. Thus there must be a periodic revision of the amount disbursed.    

Views of Eminent Personalities on PM Kisan Samman Nidhi Yojana

1. Dr. Raghuram Rajan (Former Governor of the Reserve Bank of India)

Viewpoint: Dr. Raghuram Rajan is not fully optimistic about the direct income support to farmers under Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna). Although he recognizes the need for immediate financial assistance, he is skeptical about the long term feasibility of the scheme. According to him, financial assistance cannot be a substitute for structural reforms in agriculture. He argues that focus should be in the direction of modernizing farming practices, increasing agricultural income and improving market access.

Quote: “In the short term, schemes like PM-KISAN offer some financial relief to farmers, but without complementary reforms in agriculture, we may just be kicking the can down the road.”

Critical Insight: Rajan’s view highlights the importance of focusing on long-term agricultural reforms rather than relying solely on cash transfers. He suggests that direct income support programs like Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna) should be accompanied by efforts to improve agricultural infrastructure and technology, thus leading to sustainable growth in the sector.

2. Dr. M.S. Swaminathan (Father of the Green Revolution in India)

Viewpoint: Dr. M.S. Swaminathan, the pioneering agricultural scientist, is of the view that there should be a holistic approach which includes financial assistance and innovative strategies to improve agricultural productivity and sustainability. He is not an ardent critic of Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna), he stresses that along with financial assistance there should be approaches for water management systems, improved access to technology and better market pricing systems.

Quote: “While PM-KISAN provides financial assistance to farmers, it should not divert attention from the need for structural changes in agriculture, including ensuring remunerative prices and investment in sustainable farming practices.”

Critical Insight: Swaminathan’s endorsement of Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna) is coupled with a strong call for focusing on the wider agricultural ecosystem. He insists that the financial aid provided by the scheme must be seen as a component of a larger strategy to modernize and strengthen Indian agriculture, particularly through reforms in pricing mechanisms and infrastructure development.

3. Arvind Subramanian (Former Chief Economic Advisor, Government of India)

Viewpoint: Arvind Subramanian has supported the Pradhan Mantri Kisan Samman Nidhi Yojna (PM KISAN Yojna) as according to him direct money transfer can help in the poverty alleviation in rural areas. Along with this he is of the view that financial assistance should be coupled with structural reforms in Indian agriculture.

Quote: “PM-KISAN is a necessary but not sufficient step in addressing the agricultural distress in India. It must be part of a broader package of reforms aimed at improving the efficiency and competitiveness of Indian agriculture.”

Critical Insight: Subramanian emphasizes the need for a comprehensive approach that includes improving agricultural productivity, addressing market inefficiencies, and ensuring that income support schemes like PM-KISAN do not come at the expense of more substantial investments in agricultural infrastructure, research, and development.

4. P. Sainath (Renowned Journalist and Author, Expert on Rural India)

Viewpoint: P. Sainath, an advocate for the rights of India’s farmers and rural poor, has strongly criticized the scheme (PM KISAN Yojna) for the small amount of assistance that it provides. According to him the meager amount of money cannot address the deep rooted issues in Indian agriculture. He stresses that the scheme provides financial assistance while it does not deal with the primary issues like  causes of farmer distress, such as rising input costs, inadequate credit facilities, and poor market access. According to him, direct cash transfer is a temporary solution. The long term solution lies in creating a framework for providing fair and stable prices  to the farmers for their produce.

Quote: “₹6,000 a year is a pittance compared to the rising input costs that farmers face. Without addressing the structural issues, PM-KISAN is merely a band-aid on a wound that requires much deeper healing.”

Critical Insight: Sainath’s critique focuses on the insufficiency of the financial support provided by PM-KISAN in the face of escalating agricultural costs. He underscores the need for long-term solutions like price stabilization, affordable credit, and better infrastructure to empower farmers and alleviate rural distress.

5. Ashok Gulati (Agricultural Economist and Former Chairman, Commission for Agricultural Costs and Prices)

Viewpoint: Ashok Gulati has openly supported the scheme (PM KISAN Yojna) for its ability to contribute to farmer welfare. According to him direct income support is any time better than the traditional subsidies as many times these do not reach the intended beneficiaries. At the same time argues that the assistance should be increased and accompanied with other reforms such as improving agricultural productivity, promoting crop diversification, and developing rural infrastructure.

Quote: “Direct income support through PM-KISAN is a welcome move, but it should be seen as a supplement to, not a substitute for, other essential reforms in the agricultural sector.”

Critical Insight: Gulati’s analysis supports the notion that PM-KISAN is a positive measure, but he emphasizes that the scheme alone cannot resolve the challenges in Indian agriculture. He advocates for a multipronged approach that includes increasing the financial support provided by the scheme and implementing broader reforms to enhance agricultural productivity and rural development.

6. Niti Aayog (Government Think Tank)

Viewpoint: Niti Aayog, the government’s policy think tank, has unequivocally supported the PM Kisan Samman Nidhi Yojna (PM KISAN Yojna) as according to it the scheme addresses the issue of rural poverty and ensures welfare of farmers. The body thinks that the scheme would empower farmers by giving them the much needed financial assistance. At the same time it also stresses on the need for improving access to markets, enhancing irrigation infrastructure, and promoting sustainable farming practices.

Quote: “PM Kisan Samman Nidhi Yojana (PM KISAN Yojna) is a milestone in empowering Indian farmers, but to ensure sustainable agricultural growth, we must combine it with investments in infrastructure, market access, and technology.”

Critical Insight: Niti Aayog’s perspective underscores the importance of viewing PM-KISAN as part of a broader strategy for agricultural development. While the scheme is an important step in providing direct support to farmers, the organization emphasizes the need for holistic reforms to promote long-term agricultural sustainability and growth.

Other Aspects 

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Conclusion: Balancing Views for a Comprehensive Approach

The views of these eminent personalities underscore that the scheme (PM KISAN Yojna) is an important initiative but should be seen as part of a larger framework to address the myriad challenges facing Indian farmers. Economists and agricultural experts broadly agree that while direct income transfers provide short-term relief, they are not a substitute for comprehensive agricultural reforms.

Key recommendations that emerge from their insights include:

• Increase financial assistance to reflect rising costs of agriculture.
• Include tenant farmers and sharecroppers who are currently excluded from the scheme.
• Address delays in payment and improve the administrative efficiency of the scheme.
• Complement PM Kisan Samman Nidhi Yojna (PM KISAN Yojna) with reforms that promote sustainable agricultural practices, better pricing mechanisms, and improved rural infrastructure.

The consensus is that the Yojana (PM KISAN Yojna) provides critical support but must be integrated with broader agricultural policies to achieve lasting positive impacts for Indian farmers.

Conclusion 

The Yojana is a commendable initiative by the government to provide financial support to India’s small and marginal farmers. Its key features, such as the DBT mechanism, broad coverage, and simplified registration process, have made it a valuable source of income for millions of farmers. However, the scheme faces several challenges, including inadequate financial assistance, exclusion of tenant farmers, and delays in payments.

While PM-KISAN provides immediate relief to farmers, it does not address the deeper structural issues in Indian agriculture. For the scheme to have a more lasting impact, it should be complemented with reforms aimed at increasing productivity, sustainability, and market access. Additionally, improvements in the scheme’s design and implementation, such as increasing the financial assistance and including tenant farmers, will make PM-KISAN more inclusive and effective in improving the lives of Indian farmers.

To add depth and context to the critical evaluation of the Pradhan Mantri Kisan Samman Nidhi Yojna (PM-KISAN) scheme, let’s incorporate views from eminent personalities such as economists, policymakers, and agricultural experts who have voiced their opinions on the scheme. Their insights provide a broader perspective on the scheme’s impact, challenges, and potential for improvement.

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