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PM Kisan is fine, but raise investment to make farming sustainable -Ashok Gulati & Ritika Juneja

-Financial Express

Just ahead of the 2019 general elections dates announcement, the prime minister launched the centrally sponsored ‘Pradhan Mantri Kisan Samman Nidhi’ (PM-Kisan) scheme of Rs 75,000 crore for small and marginal farm families. On February 24, 2019, from Gorakhpur in Uttar Pradesh, he transferred the first installment of Rs 2,000 each (out of `6,000 per annum) into the bank accounts of 1.01 crore farm families, amounting to `2,021 crore. By March 9, 2.6 crore farm families had, in totality, been given `5,215 crore. The target is to cover about 12.6 crore beneficiary farm families by the end of March 2019.

Although the amount involved per family is too little, and coming too late, direct income support (DIS) marks a beginning of a new policy direction. It can reach about 86% of farm families compared to loan waivers that can benefit only a maximum of 30% of peasantry and a higher MSP policy which can benefit a maximum of only 10-15% of peasantry. However, at this stage, one does not know whether PM-Kisan is just for one year or is likely to continue for the next few years. If it is just for one year, it is more a bait for votes than a genuine step towards improving incentives for farmers in a more predictable and structured manner.

Similar moves towards DIS for farmers have been made by a number of states, especially Telangana (Rythu Bandhu scheme), Odisha (KALIA scheme), West Bengal (Krishak Bandhu), and Jharkhand (Krishak Aashirwad Yojana). Each one has its pros and cons, and can be improvised in due course. But we welcome all of these, especially if they continue for at least 3 years towards alleviating farm distress.

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