The government may announce an overhaul of its flagship schemes for the farm sector, ahead of the general election that is due by April-May next year.
With this intent, the agriculture ministry has commissioned a series of surveys of Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), Pradhan Mantri Fasal Bima Yojana (PMFBY) and interest subvention scheme, to assess their impact on the farming community.
Sources said based on the results of these surveys, the government will consider restructuring of these schemes, and it is open to the idea of expanding the schemes with higher budget outlays.
As per the budget estimates for 2023-24, out of the total Rs 1.25 trillion allocated for ministry of agriculture and farmers’ welfare, Rs 95, 625 crore (76% of total budget) has been allocated for the three schemes – PM – Kisan (Rs 60,000 crore), PMFBY (Rs 13,625 crore) and interest subvention scheme (Rs 22,00 crore).
The ministry’s agro-economic research centres (AERCs) at Indian Institute of Management, Ahmedabad, university of Allahabad, Uttar Pradesh and Sardar Patel University, Vallabh Vidyanagar, Gujarat have started conducting surveys amongst the farmers who are beneficiaries under the key schemes.
“Questioners have been prepared and sampling is being conducted currently by three research centres,” an official said, adding that survey reports are expected in the next three months.
The centre at IIM, Ahmedabad is carrying out the survey amongst beneficiaries for PMFBY with a sample size of 3500. AERCs at Allahabad university and Sardar Patel University will conduct surveys for PM Kisan and interest subvention schemes respectively.
Since the launch of PM kisan in February, 2019, more than Rs 2.59 trillion have been transferred to farmers bank accounts so far. Under the direct cash transfer scheme, farmers are provided financial assistance of Rs. 6,000 annually through three four-monthly installments under the scheme.
In July, Prime Minister Narendra Modi had transferred the 14th instalments under the PM-Kisan worth Rs 17,000 crore to 85 million farmers. Of about 140 million farmer households in the country, roughly a third are tenants without land ownership, and these people are not covered under PM Kisan.
Currently, financial assistance under PM Kisan is provided to farmers with land holdings which are subject to certain exclusion criteria. It allows farmers to take care of expenses related to agriculture and well as other incidental expenses.
Under the PMFBY which is currently being implemented in 22 states and union territories, the premium to be paid by farmers is fixed at just 1.5% of the sum insured for rabi crops and 2% for kharif crops, while it is 5% for cash crops. It is optional for the farmers to opt for PMFBY and currently around 20 million farmers avail the crop insurance scheme.
Several insurance companies both the public and private sectors, are implementing crop insurance launched in 2016.
The government had launched the interest subvention scheme in 2006-7 for providing short term agricultural loans upto Rs 3 lakh at an annual interest rate of 7% for farmers engaged in agriculture and allied sectors activities including dairying, beekeeping etc. Additional 3% subvention is also provided for prompt and timely repayment of loans.
However, the scheme, under which Rs 22,000 crore has been budgeted in current fiscal, was modified last year where public sector banks, regional rural banks and cooperatives banks are provided with 1.5% interest subvention during 2022-23 to 2024-25.