PM Kisan Maandhan Yojana – A Scheme for Small and Marginal Farmers

Addressing the plight of the Indian farmers, the Government of India under the leadership of Prime Minister Narendra Modi has launched the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) on 12th September 2019. The PM Kisan Maandhan Yojana aims to provide social security to the small and marginal farmers in their old age to provide them with the means of livelihood when they have no savings to meet their expenses.

Indian farmers are the spine of the Indian economy, and farmers are indeed the beloved children of Mother India. India’s farmers are the most hardworking ones worldwide, working hard for their crops during day and night.

India is the largest producer of agricultural products globally, contributing 18 % to the Gross Domestic Product (GDP) and employs nearly 50 % of the Indian workers. Not only is it present, but the Indian farmers holding a vital position in the future generations. Despite their huge contribution to the nation’s economy, the Indian farmers have neglected the community for a long time.

Under the PM Kisan Maandhan Scheme, around 5.89 crores, farmers will be given the first installment of Rs. 2000 while 3.41 core farmers will get the second installment.

Features of PM Kisan Maandhan Yojana

Following are the features of PM Kisan Maandhan Yojana-

1. The major aim behind starting the PM Kisan Maandhan Yojana is to provide social security to all the landholding Small and Marginal Farmers in India.
2. The Indian Framers have meager or no savings and no source of livelihood when they reach old age.
3. The Scheme aims to aid them in living a healthy and happy life after having reached their old age.
4. A fixed pension of Rs. 3000 will be provided to all the small and marginal farmers.
5. PM Kisan Maandhan Yojana is a voluntary and contribution-based pension scheme.
6. Such pension will be paid to the farmers from a Pension Fund which will be managed by the Life Insurance Corporation of India (LIC).
7. The Farmers will contribute an amount between Rs. 55 to Rs. 200 per month in the Pension Fund till they reach the retirement date i.e. the age of 60 years.
8. The equal contribution of the Central Government will be made of the same amount in the Pension Fund.
9. The farmers of 18 years age and above and up to 40 years are eligible to join the PM Kisan Maandhan Yojana.
10. The spouses of small and marginal farmers will also be eligible for the benefits of the scheme separately and will get a separate pension of Rs. 3000 when they reach the age of 60 years.
11. The farmers can leave the scheme later if he does don wish to continue for any reason. The contribution of such farmers in the Pension Fund will be returned to them along with the interest.

Throwing Light on the Additional Features

• In a situation where an unfortunate death of the farmer occurs before his retirement date, his spouse may continue in the PM Kisan Maandhan Yojana by paying the remaining amount till the retirement age of the deceased farmer.
• If in case, the spouse of a Farmer does not wish to continue the scheme, in case of his premature death, the total contributions made by such deceased farmer will be paid to the spouse along with the interest.
• In case of death of the farmer before his retirement age, there is no spouse available, the total contribution made by the deceased farmer will be returned to the nominee along with the interest.
• In case of death of the farmer after the retirement date, the spouse will be eligible to receive 50 % of the pension that is Rs. 1500 per month as a Family Pension.
• In the case where a farmer is a beneficiary of the PM-Kisan Scheme, such farmer will allow the contribution to be directly paid from the same bank account in which he receives the PM-Kisan benefits.
• The farmer who is eligible for the scheme and wishes to join it will have to visit the nearest Common Service Centre (CSC) along with their Aadhaar number and Bank Passbook or his Account details.
• An alternative facility of enrollment through the PM-Kisan Nodal Officers or by any other means or through an online enrolment will be made available to the farmers at the later stage of implementation.
• The farmers will not be required to make any payment for the CSC centers as the enrollment procedure is free of cost.

What is the Need for Launching the PM Kisan Maandhan Yojana?

The thousands of marginal farmers in India struggle for their survival even after putting in immense hard work. According to the 2001 and 2011 census, 9 million farmers have quit cultivation due to various reasons, and this number is likely to go down drastically in the coming years.

The condition of the Indian farmers is terrible as about 0 % of the farmers are marginal or small farmers having less than 1 hectare of land to cultivate. Agriculture provides support to about 60 % of employment and contributes to only 17 % of the GDP. The regular reports of the Indian farmer’s suicides in different parts of the country are evidence that the conditions of Indian farmers are poor.

The Government of India, under the leadership of PM Narendra Modi, has realized that self-reliance in the agricultural field is the best answer. The farmers have multiplied their income by conserving every drop of water and successfully making this profitable. With the view to provide social security to farmers after their retirement, the government has tried to save many Indian farmers’ lives so that they can focus more on the agricultural sector rather than being worried about their past.

Common Service Center (CSC)      

The Common Service Center is a strategic cornerstone of the National e-Governance Plan (NeGP) under the PM Kisan Maandhan Yojana. The National e-Governance Plan has been approved by the Government of India in May 2006, to fulfill its commitments in the National Common Minimum Program. The major objective of the National Minimum Program is to introduce e-Governance on a large scale and to provide high quality, cost-effective video, voice, and data content in e-Governance, education, telemedicine, health, and other private services. The Common Service Center offers web-enabled e-governance services in rural locations, including certificates, forms, and payments like electricity, telephone, and water bills.

Contributions under PM Kisan Maandhan Yojana

The monthly contributions under the PM Kisan Maandhan Yojana can be made from the installments of the Pradhan Mantri-Kisan Samman Nidhi (PM-KISAN). Such contributions can also be made through the Common Services Center.

The PM Kisan Maandhan Yojana has an outlay of Rs. 10,774 crores by the Government of India for the next three years. The scheme is implemented all over the country, including the states of Jammu & Kashmir and Ladakh.

Importance of Securing Unorganized Sector in India

The Indian economy is based on the existence of the unorganized or informal sector.  The unorganized sector includes the agricultural sector, construction, fisheries, street vendors, etc., consisting of an overwhelming number of workers and casual labor, consisting of small jobs at meager wages where there is an absence of job security and social benefits.  The unorganized sector is dependent on the organized sector and the economy as a whole. This sector is generally void of capital and fails to get access to organized funding, which forced this sector to borrow from the unorganized market at high rates of interest. It has caused the government to intervene; both the public and private banks at the state and central level have started offering loans to such an unorganized sector.

With globalization, the Indian government has started making several efforts to boost the informal sector, which brought modest growth to the unorganized sector. Along with the government, some organizations have also come forward to push the unorganized sector. Our Organization, Aatmnirbhar Sena, invested in various activities and social movements towards the welfare of the unorganized sector workers.

Due to the low incomes, unstable employment generation, and lack of protection of the workers from trade unions or laws, the proper implementation of the legislation has been inadequate and ineffective. There is an urgent need to ensure social security for the workers engaged in the unorganized sector, the government realizing the need for this sector in the Indian economy, have launched the PM Kisan Maandhan Yojana.

Eligibility of PM Kisan Maandhan Yojana

Following are the eligibility criteria of the PM Kisan Maandhan Yojana:

1. Farmers must be of the age of 18 years and above and up to 40 years to join the scheme benefits.
2. The eligible farmer’s spouses will also be entitled to avail of the benefits under the PM Kisan Maandhan Yojana separately. Such spouses will get a separate pension of Rs. 3000 after attaining the age of retirement.
3. The farmers holding land up to 2 hectares will be eligible for the PM Kisan Maandhan Yojana.
   

Significance of PM Kisan Maandhan Yojana

The PM Kisan Maandhan Yojana is expected to benefit a minimum of 10 crores laborers and workers in an unorganized sector within the next five years. This scheme is one of the largest pension schemes in the world which is expected to benefit a huge number of beneficiaries.

Total Contribution

The farmer’s contribution under the PM Kisan Maandhan Yojana will be an amount between Rs. 55 to Rs. 200 every month. Such contribution will be made till such farmers reach their retirement ages that are 60 years. The contribution under the PM Kisan Maandhan Yojana will be made in an equal contribution of the same amount required in the pension fund.

Registration Procedure

The eligible farmers who wish to join the PM Kisan Maandhan Yojana scheme will have to visit the nearest Common Service Center (CSC) accompanied by their passbook and bank details.

An alternative enrollment facility under the PM Kisan Maandhan Yojana is available through PM-Kisan state Nodal, officials, or by online enrollment. Such enrollment would b free of cost and will not have to pay at the CSC centers.

Voluntary Exit under PM Kisan Maandhan Yojana

The beneficiaries under the PM Kisan Maandhan Yojana can opt voluntarily to exit the scheme after a minimum period of 5 years by regular contributions made by the farmers. The entire contribution of such farmers will be returned by the LIC along with an interest equivalent to the prevailing saving bank rates.

Conclusion

The Indian farmers are certainly the hard-working farmers in the world with an ability to manage the variations of nature, hard weather, and unfavorable circumstances. Along with the farmers, Indian Agriculture has the potential to spur the overall Gross Domestic Product (GDP). The 4 % growth in the agricultural sector would add at least a percentage point to the GDP, thus, improving India’s trade deficit by increasing exports.

Agriculture is the largest source of livelihood, with 70 percent of its rural population still depending on the agricultural sector. Thus, it becomes very important to boost this sector, which can be directly achieved by strengthening India’s economic and social status. The Government has the vision to empower the farmers, which is reflected by the launch of PM Kisan Maandhan Yojana.

The farmers in the agricultural sector suffer from a poor standard of living. Therefore, this scheme is an effort designed to provide decent comfort to life and work environment. There is a need to address their insecurities and improve their living standards even after their retirement age.

 Among many initiatives and schemes, the Modi Government is making major efforts to secure the lives of the Indian farmers. The Government, through the PM Kisan Maandhan Yojana, is trying to become the companion of the farmers who require it the most. The Government is providing social security to the Indian farmers by providing them a protective shield. It is the most important step to empower the farmers and strengthen the agricultural sector, which is the backbone of an Indian economy.

The farmers can now contribute to the pension fund under the PM Kisan Maandhan Yojana without having an extra burden on their pockets.  It will help in reducing the number of farmer suicides in India.