ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Pradhan Mantri Kisan Samman NidhiSubscribe to Pradhan Mantri Kisan Samman Nidhi

Price or Income Support to Farmers

The present study explores the scalability and feasibility of some of the major central government programmes, such as the Pradhan Mantri Annadata Aay SanraksHan Abhiyan, the Pradhan Mantri Kisan Samman Nidhi, and other possible methods of direct payments, by analysing their fiscal costs and physical storage requirements. Different models of price and income support have been discussed and a comparative picture has been drawn. The PM-AASHA and PM-KISAN are fiscally the most and the least expensive programmes. A judicious mix of policies is needed depending on the importance of the commodity in the public distribution system, adequacy of market demand, and whether the production is localised or limited.

PM-KISAN and the Adoption of Modern Agricultural Technologies

The Pradhan Mantri Kisan Samman Nidhi scheme aims to provide income support to farmers for easing their liquidity needs to facilitate timely access to inputs. This study, based on 1,406 farmers of Uttar Pradesh, uses a binary choice model to examine the targeting accuracy and correlates of the spending pattern of farmers. Triple difference with matching estimators is used to identify the differential impact of the scheme on the Krishi Vigyan Kendra beneficiaries. Results show that the scheme reached one-third farmers in the first three months of its implementation, and has significantly helped those who are relatively more dependent on agriculture and have poor access to credit. Moreover, the scheme has significantly stimulated the Krishi Vigyan Kendra's impact on the adoption of modern cultivars.

Back to Top