Model Answer

Introduction

PM-KISAN, launched on 24th February 2019, is a Central Sector Scheme aimed at providing financial assistance to landholding farmers. The scheme offers an annual financial benefit of Rs 6,000, paid in three equal instalments, directly transferred to farmers’ bank accounts through Direct Benefit Transfer (DBT). It has been a crucial intervention in addressing agrarian concerns and fostering rural growth.

PM-KISAN’s Role in Addressing Agrarian Concerns

1. Income Stability
   • The Rs 6,000 annual payment provides a stable source of income, helping farmers manage fluctuations in their income caused by unpredictable weather and volatile market conditions.
   • Example: During periods of drought or crop failure, this assistance offers crucial financial relief to small and marginal farmers.
2. Debt Relief
   • Many farmers use the PM-KISAN funds to pay off small debts, thereby reducing their financial burden and improving their creditworthiness.
   • Illustration: Small farmers have reported lower instances of distress, including a reduction in suicides due to the added financial support.
3. Reducing Input Costs
   • The financial support helps farmers cover essential input costs such as seeds, fertilizers, and pesticides, improving their capacity to manage crops effectively.
   • Example: Farmers can afford better-quality seeds, leading to improved crop yields and productivity.
4. Boosting Agricultural Investment
   • PM-KISAN enables farmers to invest in modern agricultural practices like improved irrigation systems or machinery, enhancing productivity.
   • Illustration: With this financial support, a farmer may purchase drip irrigation systems, reducing water usage and increasing efficiency.

PM-KISAN’s Contribution to Fostering Rural Growth

1. Increased Purchasing Power
   • The scheme directly boosts the purchasing power of farmers, leading to increased demand for goods and services in rural areas.
   • Example: Rural markets see a rise in the sale of consumer goods and farming equipment, stimulating local economies.
2. Investment in Local Businesses
   • The additional disposable income allows farmers to diversify their income by investing in small businesses or other non-agricultural activities, fostering rural entrepreneurship.
   • Illustration: A farmer might open a small shop or invest in a service like mobile repair, creating local jobs.
3. Agricultural Value Addition
   • Farmers with increased incomes are more likely to invest in value-added agricultural products, contributing to rural economic diversification.
   • Example: A farmer may use surplus income to produce and sell processed food items like pickles or jams, increasing profits.

Challenges Facing PM-KISAN

1. Limited Beneficiary Coverage
   • While PM-KISAN targets 125 million small and marginal farming households, only 32% of them (about 40.27 million) have benefited.
2. Insufficient Support Amount
   • The Rs 6,000 annual benefit, though helpful, covers only about a tenth of the production costs per hectare, limiting its effectiveness in solving long-term financial challenges.
3. Exclusion of Tenant Farmers and Landless Laborers
   • PM-KISAN is limited to landholding farmers, excluding tenant farmers, sharecroppers, and landless laborers, who form a large part of the rural population.
4. Market Distortions
   • Some critics argue that without accompanying market reforms, income support schemes like PM-KISAN may distort market incentives, leading to unintended consequences, such as over-reliance on certain crops.
5. Awareness Issues
   • Many eligible farmers are unaware of the scheme or find it difficult to apply.
   • Example: In Bihar, only 41% of farmers surveyed were aware of PM-KISAN.
6. Non-Farmers Benefiting
   • In some cases, non-farmers have wrongly received benefits due to inadequate verification processes.
   • Example: In Uttar Pradesh, over 12,000 non-farmers, including government employees, received PM-KISAN benefits.

Way Forward

• Expanding Beneficiary Criteria: Include tenant farmers and landless laborers to ensure wider coverage.
• Awareness Campaigns: Improve outreach through community meetings and local media to ensure that more eligible farmers are aware of and apply for benefits.
• Digital and Offline Accessibility: Strengthen both online and offline registration processes for easier access, especially in areas with limited digital infrastructure.
• Data Verification: Implement a robust system for regularly verifying and updating beneficiary data to ensure accurate targeting.
• Complementary Reforms: Integrate PM-KISAN with broader agricultural reforms and support measures like market access, crop insurance, and infrastructure improvements.

Model Answer

Introduction

The Yellow Revolution, also known as the Oilseed Revolution, was a significant transformation in India’s agricultural sector. Launched in 1986, this movement aimed to boost the production of oilseeds, improving the nation’s self-sufficiency in edible oils. It played a vital role in reducing India’s dependence on oilseed imports and enhancing food security.

About the Yellow Revolution

• Origin:
  • The Yellow Revolution began in 1986 under the Oil Technological Mission, continuing until 1987, with a focus on increasing the production of oilseeds.
• Coverage:
  • It focused on major oilseeds such as mustard, soybean, and sunflower.
• Yield Improvement:
  • The revolution introduced high-yielding hybrid varieties of oilseeds, leading to a significant increase in yields. For example, mustard yields increased from around 675 kg per hectare in 1960-61 to over 1,500 kg per hectare in recent years.
• Global Impact:
  • Today, India is the fourth-largest producer of oilseeds globally, accounting for about 20% of the global area and 10% of the total production.

Significance of the Yellow Revolution for India’s Economy:

• Reduced Import Dependence:
  • The increase in domestic production helped reduce India’s reliance on oilseed imports, improving the trade balance and ensuring greater economic stability.
• Rural Employment and Livelihoods:
  • Oilseed cultivation created new job opportunities in rural areas, contributing to livelihood enhancement. Farmers benefitted from increased income through oilseed farming, processing, and marketing.
• Value Addition and Agro-processing:
  • The rise in oilseed production also led to the growth of agro-processing industries, including oil extraction and refining units. This added value to raw oilseeds and generated additional economic returns.
• Boost to Agricultural Productivity:
  • The Yellow Revolution encouraged the adoption of modern farming practices, improved seed varieties, and advanced technology, all of which boosted agricultural productivity.
• Spillover Effects on Other Industries:
  • Oilseeds are not only used in food production but also serve as raw materials for industries like cosmetics, chemicals, soaps, and detergents, contributing to economic growth beyond agriculture.
• Human Capital Development:
  • The increased availability of edible oils improved nutrition across the country, leading to better health outcomes and the development of human capital. For example, per capita edible oil consumption rose from 6.4 kg in 1976 to 15.4 kg by 2013.