PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) was one scheme that garnered all the attention this session of Union Budget 2019. The project promises small and marginal farmers, holding less than 2 hectares (4.9 acres) of land an annual amount of INR 6000. It’s a pretty expensive scheme which is supposed to cost the country Rs. 75,000 crores (US$10 billion) per annum. The first installment from the scheme has already been delivered in the bank accounts of over 1 crore farmers.
Apart from the recently rolled-out national level scheme, five states — Telangana, Jharkhand, West Bengal, Andhra Pradesh and Odisha — have announced or are already implementing state-level income support schemes involving direct cash transfers to farmers.
Telangana government was the first one to roll out such a scheme namely Rythu Bandhu, back in May 2018 which offers farmers ₹8,000 per year for every acre of land owned.
Similarly, Odisha government’s KALIA (Krushak Assistance for Livelihood and Income Augmentation Scheme) offers a lump sum of ₹10,000 a year for small and landless farmers.
According to a recent calculation by a popular newspaper this scheme clubbed with other state offered plans will lead to farmer’s monthly incomes rising by approximately 5.6% to 14.9%.
This scheme has not only brought relief to the farmers but experts on the matter seem satisfied as well. Economists are looking forward to these schemes positively assuming and accepting that some part of this income will obviously be consumed and some of it will be invested in farms. But even the consumption has a positive side to it as increased rural consumption will again give a boost to economy.
According to experts, capital investments in agriculture is one very necessary step to induce growth in the sector.
Image Credits – Times Now Hindi
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