Federation of Indian Chambers of Commerce and Industry (FICCI) congratulated Prime Minister Narendra Modi on Saturday for extending the benefits under PM-KISAN scheme to all the farming households in the country and for a new pension scheme for five crore farmers as one of the first decisions of his new administration.
With agriculture as top priority, FICCI has been advocating the extension of PM- KISAN to all farmers in its 100 days Agenda to Government.
The government had announced Pradhan Mantri Kisan Samman Siddhi (PMKSS) in the interim Budget to provide Rs 6,000 per year to about 12.5 crore small farmers with land holding up to two hectares. The revised scheme will now cover two crore more farmers increasing the coverage to around 14.5 crore beneficiaries.
FICCI believes that Indian agriculture is yet to realise its full potential and welcomes the government’s resolve to address challenges in the sector in a comprehensive manner.
Direct income transfer is recognised as one of the most effective ways of targeting support to the farm sector. FICCI supports a gradual shift from loosely targeted input subsidies to direct benefits transfer to enable farmers to make choices in expenditure based on local priorities and exigencies.
Sandip Somany, President, FICCI said, “We urge the Prime Minister to follow up this excellent decision with further reform measures in a time bound manner to kick start a virtuous cycle of growth and value addition in the agriculture sector.”
On its first meeting after the taking oath of office by the new government, the Union Cabinet, chaired by Prime Minister Narendra Modi Friday had approved that the ambit of the PM-KISAN would be comprehensively extended. With this decision, all land holding eligible farmer families – subject to the prevalent exclusion criteria – would avail of the benefits under this scheme.
The revised Scheme is expected to cover around two 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 crore for the year 2019-20.
The key element of PM-KISAN is income support of Rs. 6,000 to the small and marginal landholder farmer families with cultivable land holding upto two hectares across the country.
The amount is being released in three 4-monthly instalments 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 (DBT) mode.