States Boost Farmer Incentives Amid Concerns Over Fiscal Strain

States are topping up PM-KISAN disbursement with own allocation to keep their poll promises. But can a rise in direct benefit transfer and bonus over MSP go hand in hand? SANJEEB MUKHERJEE writes

- SANJEEB MUKHERJEE

Many state governments over the past few weeks have announced incentives for farmers either by topping up the Centre's PM-KISAN disbursement with their own allocation, benefits of cultivation per hectare, or a bonus on minimum support price (MSP).

While most of the announcements have been part of election manifestos, the increase is bound to put a greater burden on their resources. In Madhya Pradesh, the Cabinet recently approved an extra incentive of ₹4,000 per hectare for paddy growers, which would cost the state around ₹480 crore.

The state has been topping up the PM-KISAN allocation with an extra ₹6,000 per annum for the past few years.

Madhya Pradesh also announced a special bonus of ₹125 per quintal for wheat growers, which would take the purchase price in the state to around ₹2,600 per quintal. The additional bonus is meant to boost the state's purchases of wheat. The state has targeted buying around 8 million tonnes of grains from farmers in FY26.

In its latest Budget, Rajasthan announced raising the PM-KISAN disbursement to ₹9,000 per annum by topping up the Centre's ₹6,000 per farmer. It too has announced a wheat bonus of ₹150 per quintal.

In Chhattisgarh, the Vishnu Deo Sai government has announced the ₹10,000 crore Krishak Unnati Yojana, under which it gives an input subsidy of around ₹19,257 per acre. This also includes a bonus on paddy purchase.

In Odisha, the Mohan Charan Majhi government has proposed an allocation of ₹2,020 crore for 2025-26 under CM-KISAN for timely financial assistance and input support to farmers in the state. Under the scheme, eligible small and marginal farmers in both rural and urban areas will receive ₹4,000 per annum for two cropping seasons under CM KISAN and ₹6,000 per annum (for 3 quadrimester) under the PM KISAN scheme, totalling ₹10,000 per annum from both the schemes.