Rs.1,364 crore given to wrong beneficiaries of PMKisan

#GS2 #SCHEMEs

  • PMKISAN payments worth Rs.1,364 crore have been wrongly made to more than 20 lakh ineligible beneficiaries and income tax payer farmers, according to information provided by the Agriculture Ministry in response to an RTI request from activist Venkatesh Nayak.
  • According to the Agriculture Ministry data, 56% of these undeserving persons belonged to the “income tax payee” category, while the remainder belon  to the “ineligible farmers” category.

 

PMKISAN 

  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)  is the Centre’s flagship scheme to provide income support worth Rs.6,000 a year to farming families for bettering their liquidity requirements and to provide timely access to inputs.
  • PMKISAN is similar to universal basic income scheme. In the begining, the scheme was chanelled at small and medium farmers, but later extended to all farmers.

 

Benefits of PM-KISAN

  • Ease of Liquidity: Majority of the farming households in the country do not have access to formal credit.
  • PM-KISAN eases liquidity constraints of farmers for acquiring inputs.
  • Producer support in our country is poor unlike other countries. This scheme will help compensate that to a small extend.
  • Promoting Advancements: Although this is a general cash transfer scheme, it promotes rapid adoption of modern technologies. This will fuel modernization of agriculture. 
  • PM-KISAN has significantly stimulated the Krishi Vigyan Kendra's impact on the adoption of modern cultivars.
  • Developing Farmers’ Capability: Cash transfer raises the net income of farmers. This may increase farmers’ risks-taking capacity. It can lead to farmers making comparatively productive investments.
  • Unbiased: There is no selection bias in choosing the PM-KISAN beneficiaries based on attributes like caste and land size.

 

Challenges

  • Lack of planning: Unorganized export and import policies, poor infrastructure, and unpredictability in agricultural markets have unfavorably affected agricultural productivity and stability of farm incomes.
  • Inadequate Support: The merit of cash transfers over loan waivers and subsidies lies in their potential greater efficiency in enabling poor households to directly purchase the required goods and services as well as enhance their market choices.
     
  • Volatility of Markets: Due to the volatile market and price fluctuations in different regions, it is important to index the cash transfers to local inflation.
     
  • Lack of Grievance Redressal Mechanism: The scheme does not provide a clear design of transfers and a framework for effective grievance redress.
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