5 Years of Pradhan Mantri Kisan Maandhan Yojana

• 11 Sep 2024

For Prelims: Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) , National Informatics Centre,  Life Insurance Corporation of India (LIC), Common Service Centres (CSCs),the National e-Governance Plan (NeGP), 

For Mains: Critically analyse the Impact of the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) 

Source: PIB 

Why in News?

Recently, the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), launched on 12th September 2019, has completed five successful years. 

What is the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)? 

• About: 
  • Eligibility: The scheme has been started to provide social security to all landholding Small and Marginal Farmers (farmers whose land holdings are upto two hectares of land in the country). 
• Current Status: 
  • As of August 2024, 23.38 lakh farmers have enrolled, with Bihar and Jharkhand leading in registrations. 
    • Uttar Pradesh, Chhattisgarh, and Odisha have over 2.5 lakh, 2 lakh, and 1.5 lakh farmer registrations, respectively.  
    • This widespread participation highlights increasing awareness and growing adoption of the scheme among small and marginal farmers, reflecting its importance in ensuring financial stability for this vulnerable segment. 

 

• Key Benefits under PM-KMY: 
  • Monthly Contributions: Contributions range from Rs 55 to Rs 200, based on the subscriber's age at enrollment. 
  • Equal Government Contribution: The Central Government contributes an equal amount to the pension fund as the subscriber. 
  • Minimum Assured Pension: Each subscriber is entitled to a guaranteed minimum pension of Rs 3,000 per month upon reaching 60 years of age. 
  • Family Pension: Upon the subscriber's demise, the spouse will receive a family pension of Rs 1,500 per month, provided they are not already a scheme beneficiary. 
  • PM-KISAN Benefit: Small and Marginal Farmers (SMFs) may utilise their Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) benefits for voluntary contributions, with necessary authorisation for auto-debit. 
• Leaving the Pension Scheme: 
  • If the subscriber exits before reaching age sixty, they will receive their contribution plus accumulated interest. 
  • If a subscriber passes away while receiving their pension, their spouse will be entitled to a family pension equal to 50% of the amount the subscriber was receiving i.e. Rs.1500 per month as Family Pension.  
  • Upon the subscriber’s and spouse’s death, the remaining corpus shall be returned to the fund. 
• Management of Scheme: 
  • The pension fund is managed by Life Insurance Corporation of India (LIC) with registration facilitated through Common Service Centres (CSCs) and State Governments. 

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)  

• About: 
  • Under the scheme, the Centre transfers an amount of Rs 6,000 per year, in three equal installments, directly into the bank accounts of all landholding farmers irrespective of the size of their land holdings. 
  • It was launched in February 2019. 
• Funding and Implementation: 
  • It is a Central Sector Scheme with 100% funding from the Government of India. 
  • It is being implemented by the Ministry of Agriculture and Farmers Welfare. 
• Identification of Beneficiaries: 
  • The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments. 
• Objective: 
  • To supplement the financial needs of the Small and Marginal Farmers in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle. 
  • To protect them from falling in the clutches of moneylenders for meeting such expenses and ensure their continuance in the farming activities.

What are the Key Initiatives of Government Related to Agriculture?  

• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Soil Health Card Scheme
• Pradhan Mantri Krishi Sinchai Yojana (PMKSY)  
• e-National Agriculture Market (e-NAM)  
• Paramparagat Krishi Vikas Yojana (PKVY)  
• Digital Agriculture Mission  
• Unified Farmer Service Platform (UFSP)  
• National e-Governance Plan in Agriculture (NeGP-A)  
• Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) 

Conclusion

Over five years of its implementation, the PM-KMY has substantially empowered Small and Marginal Farmers (SMFs) across India. A key achievement of the scheme is its contribution to financial stability for farmers, who often face uncertain futures due to the seasonal and volatile nature of agriculture. By ensuring a pension for their retirement years, PM-KMY has filled a crucial gap in social security for the rural populace, underscoring its vital role in enhancing the quality of life for the nation’s "Annadata."  

Drishti Mains Question: 

Discuss the impact of the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) on the financial security of Small and Marginal Farmers (SMFs) in India.

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims 

Q. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? (2020)

1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below: 

(a) 1, 2 and 5 only 

(b) 1, 3 and 4 only 

(c) 2, 3, 4 and 5 only 

(d) 1, 2, 3, 4 and 5 

Ans: (b) 

Q. In India, which of the following can be considered as public investment in agriculture? (2020)

1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments

Select the correct answer using the code given below: 

(a) 1, 2 and 5 only  

(b) 1, 3, 4 and 5 only 

(c) 2, 3 and 6 only  

(d) 1, 2, 3, 4, 5 and 6 

Ans: (c)

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Mains 

Q. What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap? (2018)