A
SYNOPSIS ON
Impact of PM Kisan Samman Nidhi Yojna on Farmer’s of Uttar Pradesh:An Empirical
study of Lucknow and Barabanki Districts
DEPARTMENT OF SOCIOLOGY
UNIVERSITY OF LUCKNOW
Presented by : KETAN SHUKLA
Email : [email protected]
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Introduction
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a new Central Sector Scheme to provide
income support to all landholding farmers' families in the country to supplement their financial
needs for procuring various inputs related to agriculture and allied activities as well as domestic
needs. Under the PM-KISAN scheme, all landholding farmers' families shall be provided the
financial benefit of Rs. 6000 per annum per family payable in three equal instalments of Rs. 2000
each, every four months. PM-Kisan Samman Nidhi Yojana was announced on February 1, 2019,
during the InterimUnion Budget 2019 and was effective from December 2018. Prime Minister
Narendra Modi launched PM-Kisan Samman Nidhi Yojana on February 24, 2019, in Gorakhpur. PM
Modi transferred the first installment to 1 Crore farmers of Rs. 2000 each ahead of the Lok Sabha
Elections 2019.
The scheme aims to strengthen the financial capability of the farmers in procuring agricultural
inputs and encourage adoption of modern techniques in the crops to obtain optimum yield. Apart
from this, it also helps in reducing the liquidity constraints and easing the access to credit.
Under the Pradhan Mantri Kisan Samman Nidhi Yojana, an amount of ₹ 6000 is provided to all the
small and marginal farmers of the central government every year, this amount is sent to all the lower
middle-class farmers through online medium who all are farmers. The revised Scheme is expected
to cover around 2 crore more farmers, increasing the coverage of PM-Kisan to around 14.5 crore
beneficiaries, with an estimated expenditure by Central Government of Rs. 87,217.50 crores for
year 2019-20. The amount is being released in three 4-monthly installments of Rs.2000/- each over
the year, to be credited into the bank accounts of the beneficiaries held in destination banks through
Direct Benefit Transfer mode. The scheme was launched in a record time of 3 weeks, on 24th
February at a huge programme in Gorakhpur; Uttar Pradesh where the first rounds of installments
was paid to several farmers.
The programme, PM-KISAN, is similar to other such schemes like the Rythu Bandhu of Telangana
and Kaalia programmes of Odisha. Bhavantar Bhugtan Yojana in Madhya Pradesh sought to provide
relief to farmers by providing the differential between MSPs and market prices. The Rythu Bandhu
scheme of the Telangana government provides ₹4,000 per acre for every season to all the farmers of
the state. Similar initiatives have also framed in Jharkhand and Odisha. In December 2018, Odisha
launched the Krushak Assistance for Livelihood and Income augmentation (KALIA). KALIA is
more complicated in design and implementation. It commits to give Rs 5,000 per SMF, twice a year
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that is Rs 10,000 a year. As per the agricultural census 2015–16 data, there are 99,858 marginal
landholdings (less than 1 ha) and 25,777 small landholdings (1 ha to 2 ha) in India. Therefore, there
are 1, 25,635 landholdings eligible for the benefits under the PM-Kisan programme. At Rs. 6,000
per landholding, the total annual expenditure works out to approximately `Rs. 75,381 crores.
Subsequently, the criteria of eligibility for the scheme were changed from June 2019 onwards and it
was extended to cover all the 140 million farmers of the country. The rationale behind the amount
Rs. 6,000 per landholding is not clear from any of the policy documents. However, from the basic
theory of production, it can be inferred that a farmer is likely to incur severe loss or may even stop
cultivating if the average variable costs fall below the price they receive. Adoption of modern
technologies is one of the most promising strategies to increase farm incomes. Among the
constraints to technology adoption, the most prominent are lack of information and lack of credit. In
India, more than half of farming households do not have access to formal credit and one fifth
farmers purchase inputs on credit. In such a situation, the introduction of a cash transfer scheme
(Pradhan Mantri Kisan Samman Nidhi) (PM-Kisan) to ease the liquidity constraints of Indian
farmers for procuring inputs is important and relevant.
Features of PM Kisan Samman Nidhi Yojana
• Income Support
The primary feature of this Yojana is the minimum income support it provides to farmers. Each
eligible farmer family is entitled to receive Rs.6000 per annum across India. However, the amount is
not disbursed at once. Instead, it’s divided into three equal instalments and meted out four months
apart. Each farmer, thus, receives Rs.2000 every 4 months. Beneficiaries can use this amount for
numerous purposes. Pradhan Mantri Kisan Samman Nidhi Yojana’s guidelines do not categorically
define any usage restriction.
• Funding
PMKSNY is an Indian government-sponsored farmer support scheme. Therefore, the entirety of its
funding comes from the Government of India. Initially, it announced a reserve of Rs.75000 crore a
year to be spent on this initiative. It disbursed Rs.17,000 crore in the latest instalment on 9th August
2020 to the scheme’s beneficiaries’ bank accounts via Direct Benefit Transfer or DBT.
• Identification Responsibility
While the responsibility of funding lies with GOI, the identification of beneficiaries is not under its
purview. Instead, it’s the responsibility of the State and Union Territory governments.
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Statement of the problem
PM-KISAN focuses primarily on small and marginal farmers but the landless tenants and crop
shares holders couldn’t bare the farming expenses . Absentee landlordism should be eliminated by
devising proper tools since they do not primarily do cultivation of land. Land records should be
digitalized and updated to avoid the inclusion of false cases. Grievances and problems of the
beneficiaries should be solved on a regular basis by monitoring and review committees at state,
district, block and village levels. Awareness building programmed should be organized on a regular
basis to propagate the benefits of the PM-KISAN scheme.
Theoretical framework of the study
Daniel Thorner Classified the agrarian into three important classes his classification is based on the
ability to hire labourers. He is stratified agrarian into KISAN MALIK MAJDOOR . According to
him. MALIK refers to big landlord they own large pieces of land hence, they can easily hire labour
for the purpose of agriculture ,they only depend upon hired labour and they never use their own
labour or the labour of family members .
KISAN refers to those farmers who own their land but either it is small in size or it is less fertile,they
may not be able to hire labour hence they depend upon their own labour or the labour of their family
members for the purpose of agriculture.
MAZDOOR refers to that who are at the bottom of the hierarchy are those people who depend upon
agriculture for their livelihood but do not have their own land,they sell their labour on other’s lamd
they are landless labourers.
Conceptual framework of the study
Agriculture: The term Agriculture is derived from two Latin words ager or agri meaning soil and
culture meaning cultivation.
Agriculture is defined as an art, science and business of producing crops and livestock for economic
purposes as including ‘horticulture, fruit growing, seed growing, dairy farming and livestock
breeding and keeping, the use of land as grazing land, meadow land, osier land, market gardens and
nursery grounds, and the use of land for woodlands where that use ancillary to the farming of land
for Agricultural purposes”.
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Peasant: Theodor Shanin defines them as " consist of small agricultural producers who with the
help of simple equipment and labour of their families produce mainly for their consumption and for
the fulfilment of obligations to the holders of political and economical power”
Literature review :
Kumar & Phougat (2021), in their article ‘ANALYSIS OF PRADHAN MANTRI
KISANSAMMAN NIDHI (PM-KISAN) SCHEME: WITH SPECIAL REFERENCE TO
HARYANASTATE’ used the secondary data from governments reports, published articles and
PMKISAN portal. PM-KISAN initially conferred income support to small and marginal farmers.
Later on it was revised and extended to all landholding farmers of India to provide income support to
buy farm inputs. Haryana state is a good producer of wheat and rice. Agriallied sectors have been a
good source of contribution in the state GDP. Haryana is a small state of India and nearly 80% of its
geographical area is under agriculture. The state has a great potential for agri based food processing
industry. It has been found that PM-KISAN is doing better in enhancing the living standards of the
farmers. This kind of direct income support is better than the loan waivers given by the state. This
kind of income support increases the demand of agricultural inputs at the sometime it motivates
farmers to invest in food processing industries hence creating employment. However the research
has found that the amount paid under the scheme is not adequate or insufficient. The Rangarajan
Committee report has given the poverty line for rural poor is rupees32 and for urban poor it is 47 Rs
but the PM-KISAN gives only Rs. 17 per day which is very low. Therefore, the study suggested that
the amount may be increased.
Kumar & Babu (2018) in their study ‘A Study on Farmers Awareness towards Pradhan
Mantri Kisan Samman Nidhi Yojana in the Guntur District’ found that PM-KISAN had reached near
30% farmers within the three months of its implementation. In the start there was no evidence of the
beneficiary selection on the basis of social, economic and agricultural characteristics. However, later
on these concerrns were addressed. The study found that the income support provided under
PMKISAN is well utilized by the beneficiaries and it is in alignment with the objectives of the
scheme. More than half of the beneficiaries spent their money for agricultural inputs if they received
the benefits in the agricultural peak season. On the other hand more than 60% of the beneficiary
farmers spent their money on various things such as to meet their daily needs other than agricultural
purposes. Moreover the spending patterns of farmers are correlated with their dependency on the
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agricultural sector. Size of the land holding and poor access to credit are also correlated with the
spending patterns. It has also been found that PM-KISAN in integration with agricultural extension
systems such as Krishi Vigyan Kendra (KVKs), can also provide a pathway which encourages
farmers to adopt modern technologies and do productive investment in agriculture .
Singh & Kumar (2023) in their paper titled ‘EXPENDITURE PATTERN OF PM – KISAN
SAMMAN NIDHI INSTALMENTS: AN EMPIRICAL STUDY IN WESTERN UTTAR
PRADESH’ found that PM-KISAN is making the farmers self reliant. However some of the
beneficiaries faced difficulties in getting registered for the scheme and most of the beneficiaries do
not find regular installments. Although the purpose of providing the landholder’s family a support to
livelihood is achieved to some extent, however the main aim of using DBT method to support
agriculture by financially encouraging farmers to buy and use agricultural inputs to boost
productivity is not found to be achieved. Since the inflation is rising day by day but the PM-KISAN
funds remained the same therefore study found funds for most of the beneficiaries not adequate. The
role of the TV, media and Krishi Vigyan Kendra are minimal and the registration process is online
which makes it very difficult for the farmers to register as the digital literacy is very low. The study
made some of the recommendations policy suggestions such as to widen the reach of the scheme and
the disbursement based on the landholding may be changed and the income level and source of the
family may be considered to provide the targeted benefits.
Bhadwal & Kumar (2022) in their study titled “Fund Utilization Pattern of PM-KISAN
Beneficiaries' found that the timing of the getting installments is correlated with the spending
patterns by the beneficiaries. Farmers receiving the installments in the peak agricultural season they
invested on farm inputs on the other side farmers receiving the finds during off season are more
likely to spend the funds on consumption purposes. Therefore they suggested in their study that the
government should preferably release the funds keeping in kind the seasonal needs of the farmers.
Authors also suggested to enhance the entitlements as it is very less keeping in mind the
Ranghrahjan committee report on per capita expenditure along with the it has also been suggested
that the timely crediting PM-KISAN funds and infrastructure building may become a game changer
for the upliftment of small and marginalized farmers.
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Mishra & Chaturvedi (2022) in their study titled ‘MEDIATING ROLE OF PRINT MEDIA
IN SHAPING AWARENESS AND PERCEPTION ABOUT KISAN SAMMAN NIDHI
SCHEME: A STUDY ON FARMERS OF GORAKHPUR DISTRICT UTTAR PRADESH’
found that in both the studied villages ((Jangal Dhoosar and Jangle Rani Kuanri Suhas in Gorakhpur
district) farmers were highly aware about the PM-KISAN and its procedure and beneficiary criteria
for which print media played a crucial role. PM-KISAN is a very good step in stabilizing and
increasing the income of the farmers and it has been found to be a better way than loan waivers. In
the study area the farmers have become better able to buy agricultural inputs such as seeds, fertilizers
and modern equipment and to enhance the productivity of the land. The researchers found that the
funds provided to the farmers were not adequate. In addition to this the study has found that the print
media played an important role in disseminating awareness among the farmers.
Varshney, et. al, (2020) in their study titled ‘Pradhan Mantri Kisan Samman Nidhi (PMKISAN) and
the Adoption of Modern Agricultural Technologies in Uttar Pradesh, India’ found that there was no
selection bias in terms of selection of beneficiaries. Banking infrastructure created through the Jan
Dhan Yojna and timely updation of records of farmers by the state government played a crucial role
in the implementation of PM-KISAN. Expenditure patterns of PM-KISAN funds by the farmers
were well aligned with the objectives of the scheme.
Kavitha, et. al, (2020) in their article titled ‘Performance of universal basic income programme in
India: A case of PM-KISAN Scheme’ studied the performance of various states in implementation of
PM-KISAN. They found that a large number of beneficiaries belonged to Uttar Pradesh (22%) then
Maharashtra (10.2%) and then Madhya Pradesh (7.2%). There are many states which had the large
variation as reflected from the proportion of beneficiaries to potential beneficiaries. Some poor
performing states improved the performance and the factors responsible for it were greater access to
financial services to farmers, improvement in infrastructure and greater spread of technology
dissemination. Paper suggested that the state should focus on digitization of land records and seeding
of Aadhaar with bank accounts of prospective beneficiaries.
Jagadeeswari & Navya (2021) in their article ‘PM KISAN: Easing Liquidity Constraints of the
Farmers’ found that to some extent PM-KISAN has been instrumental in reducing poverty and
hunger of farmers. PM-KISAN can also help households in overcoming credit related constraints
and such type of income support may be used for repaying loans at the time of distress sale. PM-
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KISAN transfers can be used by the farmers to buy farm inputs and invest in livestock’s. PM-KISAN
has also stimulated the Kisan Vigyan Kendra (KVKs) adoption of modern paddy cultivators by the
farmers (Varshney, et. al, 2020). The paper concluded that the PM-KISAN scheme integrated with
agricultural advisory services may play an important role in breaking the cycle of low income and
intergenerational poverty of farmers by providing subsidized inputs and investment in modern
agricultural technology.
KB (2021) in the study titled ‘utilization pattern of PM-KISAN benefits’ analysed the benefit
utilization among PM-KISAN beneficiaries of Davangere district of Karnataka by choosing 120
respondents. It has been found that nearly three fourths of beneficiaries did productive expenditure
of the money. SC/STs have incurred more scheme amounts for livelihood and agronomic practices as
they have less other sources of income.
(Akhtar, 2022) in the study sponsored by the Ministry of Agriculture and Farmers Welfare,
Government of India, in the report titled ‘The Impact of Pradhan Mantri Kisan Samman
Nidhi Scheme on the Farm Income of Beneficiaries in Uttar Pradesh’ , based on the empirical
findings has suggested following policy brief for consideration:-
1. PM-KISAN focuses primarily on small and marginal farmers but the landless tenants and crop
shares shoulder the farming responsibilities, costs and burdens.
2. Absentee landlordism should be eliminated by devising proper tools since they do not primarily
do cultivation of land.
3. In order to use the funds in productive ways the reimbursement of bills incurred for purchasing
agricultural inputs should be done rather than giving direct funds to the farmers.
4. Bogus beneficiaries should be eliminated and leakages should be tapped.
5. There should be a simplified registration system to ensure universal coverage.
6. KVKs need to be effectively integrated with the PM-KISAN to promote the adoption of modern
techniques in agriculture.
7. Land records should be digitalized and updated to avoid the inclusion of false cases.
8. Grievances and problems of the beneficiaries should be solved on a regular basis by monitoring
and review committees at state, district, block and village levels.
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9. Awareness building programmes should be organized on a regular basis to propagate the benefits
of the PM-KISAN scheme.
10.Farmers without bank accounts may be promoted to open ‘no-frills’ accounts under the Jan-
Dhan Yojana, linking Aadhaar database.
Objectives of the Study
• To examine the differences in the economic level of the beneficiaries and non beneficiaries in
U.P under the PM-Kisan Samman Nidhi Scheme.
• To analyse and compare the inputs, outputs and resources on the farms of the beneficiaries
with the non-beneficiaries.
• To evaluate the impact of scheme on farm incomes
• To examine the utilisation of the funds of the scheme by the beneficiary.
• To examine the inconvenience faced by the farmers and implementing agency in receiving
and disbursing the funds.
Hypotheses
• There is no difference between the economic level of beneficiaries and non beneficiaries
under the scheme.
• Most of the beneficiary are utilising the funds for agricultural and allied activities.
• There is positive impact on the farm income.
• There is no conveniences faced by farmer and implementing agency in receiving and
distributing the funds.
Research methodology
Research design-On the basis of the objectives of the study descriptive research design will be
used.
Descriptive research design is a scientific method which involves observing and describing the
behavior of subjects without influencing them anyway. This research design provides freedom to use
both qualitative and quantitative techniques in order to find the data. In this way this study will be
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done by collecting both qualitative and quantitative data simultaneously using concurrent data
triangulation.
Research area– This study will be conducted within the boundaries of Lucknow and Barabanki
Districts .
Target population- Target population for the present study will be the farmers of Lucknow and
Barabanki Districts.
Sampling method and sample size- A tentative sample of 400 farmer’s will be drawn from the
target population using simple random sampling technique.
Data collection-Most of the data used in the present study will be primary data. The primary data
will be collected using both qualitative and quantitative techniques. Qualitative data will be collected
by case studies and quantitative data will be collected by using interview schedule. Some secondary
data may be taken from government reports and records
Data analysis-Quantitative data will be analyzed by using statistical techniques by the means of
statistical package for social sciences (SPSS). Qualitative data will be analyzed by drawing themes
out of collected data.
Ethical consideration-Data will be collected with prior consent and permission of the respondent.
The identity of the respondents will not be revealed.
Significance of the study
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) program aims to provide income support to
all landlord families across the country so that they can meet the costs and domestic needs related to
agricultural and related activities. The scheme is helping the farmers in financial needs to procure
various inputs for farming. Under the scheme, Landholder Farmer families with total cultivable
holding up to 2 hectares shall be provided a benefit of Rs.6000 per annum per family payable in
three equal instalments, every four months..
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TENTATIVE CHAPETERS
1- Introduction
2- Research methodology
3- Socio-demographic profile of respondents
4- Difference in the economic level of beneficiaries and non beneficiaries under the scheme
5- Comparing the input, output and resources on the farm of the beneficiaries with the non
beneficiaries.
6- Impact of scheme on farmer income
7- Utilisation of funds of the scheme by the beneficiary
8- Inconvenience faced by the farmers and distributing agency in receiving and distributing funds
9- Conclusion and suggestions
References
Appendix
References
Akhtar, J. The Impact of Pradhan Mantri Kisan Samman Nidhi Scheme on the Farm Income of
Beneficiaries in Uttar Pradesh.
Bhadwal, S., & Kumar, V. (2022). Fund Utilization Pattern of PM-KISAN Beneficiaries. Journal of
Krishi Vigyan, 11(1), 185-191.
Jagadeeswari, B., & Navya, L. (2021). PM KISAN: Easing Liquidity Constraints of the Farmers’.
KB, R. (2021). Utilization Pattern of PM-KISAN Benefits.
Kavitha, H. N., Kumar, P., Anbukkani, P., Burman, R. R., Venkatesh, P., Jha, G. K., & Prakash,
P.(2020). Performance of universal basic income programme in India: A case of PM-KISANScheme.
Indian Journal of Extension Education, 56(3), 1-8.
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Kumar, D., & Phougat, S. (2021). Analysis of Pradhan Mantri Kisan Samman Nidhi
(PMKisan)Scheme: With special reference to Haryana State. Journal of Global Agriculture and
Ecology,12(2), 1-8.
Kumar, P., & Babu, K. (2018). A Study on Famers Awareness towards Pradhan Mantri Kisan
Samman Nidhi Yojana in the Guntur District. Anveshana’s International Journal of Research in
Regional Studies, Law. Social Sciences, Journalism and Management Practices, 3(3), 1014.
Mishra, B. K., & Chaturvedi, N. (2022). MEDIATING ROLE OF PRINT MEDIA IN
SHAPINGAWARENESS AND PERCEPTION ABOUT KISAN SAMMAN NIDHI SCHEME: A
STUDYON FARMERS OF GORAKHPUR DISTRICT UTTAR PRADESH.
Singh, A., & Kumar, R. (2023). EXPENDITURE PATTERN OF PM–KISAN SAMMAN NIDHI
INSTALMENTS: AN EMPIRICAL STUDY IN WESTERN UTTAR PRADESH. EPRA
International
Journal of Agriculture and Rural Economic Research (ARER), 11(8), 1-9.
Varshney, D., Joshi, P. K., Roy, D., & Kumar, A. (2020). Pradhan Mantri Kisan Samman Nidhi
(PMKISAN) and the adoption of modern agricultural technologies in Uttar Pradesh, India
(Vol.1907). Intl Food Policy Res Inst.
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