Under the PM-Kisan scheme, the central government distributed an amount of more than Rs 3.24 lakh crore to more than 11 crore farmers.
Details of the amount distributed to farmers under PM-Kisan Yojana
PM-Kisan Yojana: The central government has so far transferred a total amount of more than Rs 3.24 lakh crore to the accounts of more than 11 crore farmers in 17 installments to directly benefit all the farmers across the country under the PM-Kisan Yojana. With the aim of transparency of this scheme and eliminating the involvement of middlemen, the amount has been sent directly to the bank accounts of the farmers. Union Minister of State for Agriculture and Farmers Welfare Ram Nath Thakur shared this information through a written reply in the Lok Sabha on Tuesday.
The success of PM-Kisan Yojana and its contribution to digital infrastructure
PM-Kisan Yojana: The Ministry of Agriculture and Farmers Welfare recently issued a statement stating that the farmer-centric digital infrastructure under the PM-Kisan Yojana has ensured that the benefits of this scheme reach the farmers across the country without middlemen. Complete transparency has been maintained in the registration and verification of beneficiaries through this system. As a result, the Government of India has so far transferred an amount of more than Rs 3.24 lakh crore directly to the accounts of more than 11 crore farmers in 17 installments.
PM-KISAN Yojana is a central sector scheme launched by Prime Minister Narendra Modi in February 2019 to meet the financial needs of land-holding farmers. Under this scheme, a financial benefit of Rs 6,000 per year in three equal installments is sent to the bank accounts of farmer families through Direct Benefit Transfer (DBT) mode. PM-KISAN Yojana is considered one of the largest DBT schemes in the world.
Process of Determination of Minimum Support Price (MSP)
Minimum Support Price: The Central Government fixes the Minimum Support Price (MSP) for 22 major crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), considering the suggestions of the State Governments and the concerned Central Ministries and Departments. While recommending MSP, CACP takes into account several important aspects, such as the overall demand-supply situation, cost of production, domestic and international prices, inter-crop price parity, terms of trade between the agricultural and non-agricultural sectors, and the likely impact on the rest of the economy.
In addition, CACP also emphasizes on rational use of land, water, and other production resources and ensuring a minimum of 50 percent profit over the cost of production. This process ensures that farmers get fair prices for their produce and strengthens their economic condition.
Role of FCI and State Agencies in the Implementation of MSP Policy
Implementation of MSP Policy: To meet the objectives of the MSP policy, the Central Government provides price support for paddy and wheat through the Food Corporation of India (FCI) and various state agencies. The procurement of food grains from farmers is primarily done by agencies of the State Governments for which the Government of India has signed a Memorandum of Understanding (MoU) with these States.
These agreements specifically ensure that the payment of MSP and any additional bonus, if applicable, is made directly into the bank accounts of the farmers through the online system only within 48 hours of procurement of paddy or wheat by the government procurement agencies. This process ensures that farmers get a fair price for their produce promptly.
Further, procurement of Fair Average Quality (FAQ) products of oilseeds, pulses, and copra is done under the price support scheme under the umbrella of PMAASHA (Pradhan Mantri Garib Kalyan Anna Yojana). Under this scheme, these crops are procured at MSP in consultation with the state governments, thereby ensuring fair prices to farmers.
Process of MSP Procurement of Cotton and Jute
The Central Government procures cotton and jute at MSP through the Cotton Corporation of India (CCI) and Jute Corporation of India (JCI) respectively. CCI has taken several important measures to ensure timely payments to cotton farmers. These include on-the-spot Aadhaar-based farmer registration, the the launch of a mobile app called “Cot-Alli”, and transfer of 100% of payments directly to the Aadhaar-linked bank accounts of farmers through the National Automated Clearing House (NACH) of National Payments Corporation of India (NPCI).
These efforts are aimed at ensuring that farmers receive value for their crops quickly and effectively. Generally, farmers receive their payments within 7 days, thereby improving their economic condition and meeting their financial needs on time.