Editorial Opening

The recent disbursement of the 22nd instalment of the PM-KISAN scheme reaffirms the Indian government's commitment to direct income support for farmers. However, this initiative also exposes underlying challenges in agricultural productivity and rural economic stability. While the scheme aims to bolster rural consumption, which significantly contributes to India's GDP, persistent issues in the agricultural sector remain unaddressed.

In this context, the PM-KISAN scheme serves as both a lifeline for millions and a reflection of the broader systemic inefficiencies within the agricultural framework. The need for a more integrated approach to agricultural support is evident as we analyze the scheme's impact and limitations.

Institutional and Legal Framework

• PM-KISAN Scheme, 2019: Governed under the Ministry of Agriculture and Farmers' Welfare, this scheme provides direct cash transfers to farmers.
• Constitutional Provisions: Article 21 (Right to Life) and Article 46 (Promotion of educational and economic interests of Scheduled Castes, Scheduled Tribes, and other weaker sections) underpin the scheme.
• Budget Allocation: The annual budget allocation for 2023-24 stands at ₹65,000 crores.

Key Challenges

• Integration Issues: The lack of synergy between PM-KISAN and other agricultural schemes leads to inefficiencies in resource allocation.
• Productivity Concerns: Agricultural growth rate was recorded at only 3.9% in 2022-23 (Economic Survey 2023).
• Landholding Size: The average landholding size in India is approximately 1.08 hectares (Agricultural Census 2021), limiting the effectiveness of cash transfers.

Comparison of PM-KISAN and Bolsa Família

Critical Evaluation

While the PM-KISAN scheme has made significant strides in providing direct income support, several structural critiques emerge. The scheme's standalone nature limits its potential impact on broader agricultural productivity and rural economic stability.

• Policy Design: Lacks integration with other agricultural initiatives, leading to fragmented support.
• Governance Capacity: Implementation challenges persist, including delays in fund disbursement.
• Structural Factors: Small landholdings and reliance on monsoon-dependent crops hinder effectiveness.

Structured Assessment

To fully realize the potential of PM-KISAN, a comprehensive assessment is necessary:

1. Policy Design: Integrate PM-KISAN with other agricultural schemes to streamline support.
2. Governance Capacity: Enhance implementation mechanisms to ensure timely disbursement of funds.
3. Structural Factors: Promote diversification in agriculture to reduce dependency on cash transfers.

PRACTICE QUESTIONS