PM-KISAN’s big hurdle: 2 reasons why Modi’s Rs 75,000 crore farm scheme is up for challenging days

By: | Updated: March 1, 2019 12:40 PM

Even as Modi government’s ambitious PM-KISAN aims to provide annual direct income support to farmers, identifying and transferring the amount to the beneficiaries remains a challenge, said SBI’s Ecowrap.

PM-KISAN requires participation of all states to make the farm scheme successful and serve its purpose. (File/PTI)

Even as Modi government’s ambitious PM-KISAN aims to provide annual direct income support to farmers, identifying and transferring the amount to the beneficiaries remains a challenge, said SBI’s Ecowrap. It comes days after a recent media report claimed that the first instalment deposited into bank accounts of farmers was withdrawn without their consent.

It requires participation of all states to make the farm scheme successful and serve its purpose, the report added. However, so far, not all the states have been forthcoming, it stated.

Also read: Manufacturing PMI soars to 14-month high in February; 3 key factors that helped

“The Government has to take up active steps to allay the apprehensions of farmers who have not been able to retain the first installment of the PM-Kisan scheme which has subsequently been debited from the account,” report added.

Of 6.55 lakh villages, only 2.04 lakh villages or 33 per cent are linked with banks so far, SBI’s Ecowrap said citing latest data.

“So, going by this figure and considering the active KCC accounts (presently more than 6 crore), we believe Government can easily transfer the respective amount to more than 4 crore farmers by March 2019,” it further said.

Also read: The curious case of rising working age population and falling labour force in India

In budget 2019-20, the Finance Minister Piyush Goyal had announced the income support scheme for small and marginal farmers to tackle the deepening problems of price deficiency and falling farm income.

Prime Minister Narendra Modi on February 24 launched the PM-Kisan scheme, transferring the first instalment of Rs 2,000 each to 1.01 crore farmers, totalling Rs 2,021 crore. The PM-KISAN is completely funded by the central government.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition