Farm distress gets first priority for Modi Cabinet 2.0

The meeting, headed by Prime Minister Narendra Modi, decided to extend the PM-KISAN scheme to all farmers, benefitting all 15 crore ryots in the country at a cost of Rs 87,000 crore a year.

Published: 01st June 2019 05:16 AM  |   Last Updated: 01st June 2019 10:11 AM   |  A+A-

Farmers, Agriculture, Tamil Nadu

For representational purposes. (File | EPS)

Express News Service

NEW DELHI: The new government at the Centre hit the ground running by calling a Cabinet meeting on its first full day in the office and announcing relief to the distressed farm sector.

The meeting, headed by Prime Minister Narendra Modi, decided to extend the PM-KISAN scheme to all farmers, benefitting all 15 crore ryots in the country at a cost of Rs 87,000 crore a year.

In another major move, the Cabinet cleared a pension scheme that could benefit around 3 crore traders.
The Centre had announced PM-KISAN in the interim Budget 2019-20.

As per the original plan, Rs 6,000 each was to be paid to 12 crore small and marginal farmers holding cultivable land of up to two hectares a year in three instalments through DBT.

The scheme was introduced retrospectively from December 1, 2018, and the first installment was handed over to farmers in February.

On Friday, the Cabinet extended the scheme to all farmers in the country. The revised scheme envisages an estimated expenditure of Rs 87,217.50 crore in 2019-20. The previous government had estimated annual expenditure of Rs 75,000 crore in the earlier version of the scheme.

The Cabinet also approved a new central sector scheme called the Pradhan Mantri Kisan Pension Yojana, which is a voluntary and contributory pension scheme for small and marginal farmers across the country.

“The central government will contribute to the pension fund in equal amount as contributed by the farmer,” Agriculture  Minister Narendra Singh Tomar said. The scheme could cost the exchequer around Rs 10,000.

“The scheme provides income support to small and marginal landholder farmer families with cultivable land holding up to 2 hectares, across the country, by way of Rs 6,000 per year. The ongoing scheme aims to cover around 12.5 crore families,” he added.

Why the dole makes sense

The latest GDP data show that the agricultural sector growth plunged to 2.9% in FY19 against 5% in FY18. It could become worse if monsoon turns out to be poor. The scheme can support farmers’ income and boost rural consumption

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp