Roadmap for Answer Writing
1. Introduction
- Brief Introduction: Start by mentioning the PM-KISAN Scheme launched in 2019 to provide financial support to landholding farmers.
- Objective: Highlight the scheme’s goal to alleviate liquidity constraints by providing ₹6,000 annually to eligible farmer families.
- Context: Acknowledge the large-scale benefits and the number of beneficiaries (~11 crore farmer families), but note that there are significant challenges hindering its effectiveness.
2. Body
A. Key Benefits of the Scheme
- Income Support: Every eligible farmer family receives ₹6,000 annually in three installments, providing a crucial financial lifeline.
- Fact: Over 11 crore farmer families benefitted from this scheme by February 2024.
- Elimination of Middlemen: The Direct Benefit Transfer (DBT) mechanism ensures that funds are directly transferred to farmers, bypassing intermediaries.
- Multiplier Effect: The scheme encourages investment in agriculture and other sectors, improving economic resilience.
- Fact: According to an IFPRI study, 52% of the first installment was used for agricultural investments.
B. Challenges of the PM-KISAN Scheme
- Low Coverage:
- Despite the scope, the scheme’s reach is limited in some states.
- Fact: In Bihar, only 50% of eligible farmers were registered by August 2021 (82.50 lakh of 164 lakh landholdings).
- Misallocation of Funds:
- Inaccurate beneficiary identification has led to fund mismanagement.
- Fact: ₹131.40 lakh was wrongly disbursed to pensioners in Haryana, as per the CAG 2020-21 report.
- Evolving Compliance Requirements:
- Changes like mandatory Aadhaar linkage and e-KYC have complicated the registration process, leading to exclusions.
- Fact: 2.4 lakh farmers were unable to access funds due to Aadhaar-bank linkage issues.
- Decline in Fund Disbursement:
- The number of beneficiaries and funds disbursed has significantly declined over time.
- Fact: The number of beneficiaries dropped by 67%, from 11.84 crore in the first installment to 3.87 crore in the 11th installment.
3. Conclusion
- Summary: While the PM-KISAN Scheme has greatly benefitted farmers, challenges like low coverage, fund misallocation, evolving compliance, and disbursement decline need urgent attention.
- Call for Reform: Suggest that improving registration processes and enhancing transparency through better monitoring systems are necessary to ensure the scheme’s success.
- Future Steps: The government’s evaluation plan is a positive step toward addressing these issues.
Relevant Facts for the Answer
- Scheme Launch: PM-KISAN launched in 2019.
- Income Support: ₹6,000 annually to 11 crore farmer families.
- Impact:
- 52% of the first installment used for agricultural investment (IFPRI study).
- Challenges:
- Bihar: 50% coverage (82.50 lakh out of 164 lakh landholdings) in August 2021.
- CAG Report 2020-21: ₹131.40 lakh misallocated to Haryana pensioners.
- Aadhaar and e-KYC issues: 2.4 lakh farmers excluded from benefits.
- Declining Disbursements: From 11.84 crore beneficiaries in the first installment to 3.87 crore in the 11th installment (67% decrease).
Model Answer
The PM-KISAN Scheme, launched in 2019, aims to provide income support of ₹6,000 annually to all landholding farmer families. While over 11 crore farmer families have benefitted from its direct benefit transfer (DBT) mechanism, the scheme faces several significant challenges.
Key Benefits of the Scheme
Challenges with the Scheme
Conclusion
Despite its transformative potential, the PM-KISAN Scheme struggles with low coverage, compliance hurdles, and fund misallocation. Addressing these challenges by improving beneficiary identification, simplifying processes, and strengthening monitoring mechanisms is essential to maximize its impact. The government’s plan to evaluate the scheme is a positive step toward ensuring its long-term success.