Skew Towards PM-Kisan
Business Today|July 28, 2019

The shift might be aimed at boosting farmers’ income but there is no extra outgo for two crore additional beneficiaries.

Joe C. Mathew
Skew Towards PM-Kisan

After its return to power with a thumping majority, the first major task of the Narendra Modi government was to fulfil the ruling BJP’s poll promise to make the PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) plan more inclusive. It initially provided annual income support of 6,000 to 12.5 crore small and marginal farmers who own up to two hectares of land but was extended to all farmers irrespective of the size of their landholding. Consequently, two crore beneficiaries were added after the Cabinet, in its first meeting, approved an extra outgo of 12,000 crore in addition to 75,000 crore already allocated for the purpose. Curiously, the additional outlay was missing from the Union Budget 2019/20, taking the sheen out of an otherwise impressive spike in agriculture budget that almost doubled from 67,800 crore in 2018/19 to 1,30,485 crore in the current financial year. The huge outgo towards PM-KISAN has also impacted budgetary allocations for other programmes of the agricultural ministry, including funds for a minimum price support scheme for agri produce.

“Farmers hoped that the annual income support would be increased or at least extended to landless farmers who cultivate on contract/lease. But Finance Minister Nirmala Sitharaman only retained the provision of 75,000 crore. This is very surprising as the government has increased the number of beneficiaries,” says Avik Saha, National Convenor of Jai Kisan Andolan, a nation-wide campaign.

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