Interest Subvention Scheme (ISS): Complete Details The Interest Subvention Scheme (ISS) is a financial support mechanism provided by the government to reduce the burden of interest rates on loans for specific groups of people or sectors. It aims to promote economic growth, improve access to credit, and provide financial relief to borrowers, especially those belonging to vulnerable or underprivileged sections of society. Under the ISS, the government pays a part of the interest on loans taken by eligible borrowers, lowering the overall cost of borrowing.

1. Objective of the Interest Subvention Scheme

The main objectives of the Interest Subvention Scheme include:

• Reducing the Cost of Borrowing: By subsidizing interest rates, the scheme makes credit more affordable for the target groups.
• Promoting Economic Activities: The scheme supports various sectors such as agriculture, housing, education, and micro, small, and medium enterprises (MSMEs).
• Supporting Financial Inclusion: ISS is aimed at ensuring that credit is available to individuals or businesses that might otherwise be unable to access it due to high-interest rates.
• Encouraging Development: By providing lower interest rates, the government seeks to promote growth in priority sectors that contribute to the overall development of the economy.

2. Key Features of the Interest Subvention Scheme

• Subsidy on Interest: The government subsidizes a portion of the interest rate on loans availed by eligible borrowers. This reduces the financial burden on borrowers by lowering the effective interest rate.
• Eligibility Criteria: The scheme is typically targeted at specific segments of the population or sectors, such as farmers, students, MSMEs, or housing projects.
• Duration: The subsidy is typically provided for a limited time period, after which borrowers must repay the loan at the normal interest rate.
• Coverage: The scheme may apply to both short-term and long-term loans, depending on the sector or borrower.

3. Sectors and Groups Benefiting from ISS

The Interest Subvention Scheme can be tailored to specific sectors or groups that require financial assistance. Some of the key sectors and groups that benefit from the scheme include:

a. Agriculture

• Farmers: The government provides interest subvention to farmers who take loans from banks or financial institutions. The aim is to reduce the high-interest burden on agricultural loans and encourage increased agricultural productivity.
• Types of Loans: This typically applies to crop loans, working capital, or other agricultural credit.
• Impact: It helps farmers get access to affordable credit, especially during critical periods like sowing or harvesting, leading to better productivity.

b. Micro, Small, and Medium Enterprises (MSMEs)

• MSME Sector: Small and medium-sized businesses that face challenges in accessing affordable credit can benefit from interest subvention. This allows businesses to grow, expand operations, and create employment.
• Scheme Benefits: Subvention typically applies to loans for business expansion, working capital, machinery purchase, and other business needs.
• Impact: This scheme helps MSMEs by making loans more affordable, which can lead to increased production and innovation.

c. Housing

• Affordable Housing: Under the Pradhan Mantri Awas Yojana (PMAY) and other housing schemes, interest subvention is provided to individuals from lower-income groups or economically weaker sections (EWS) who wish to avail home loans.
• Eligibility: Typically, the subvention applies to first-time homebuyers or those from the low-income group, making housing more affordable.
• Impact: The scheme supports the government's goal of providing "Housing for All" by lowering the cost of home loans.

d. Education Loans

• Student Loans: Some versions of the ISS focus on education loans, especially for students from economically weaker backgrounds. Interest subvention helps reduce the burden of loan repayment for students pursuing higher education.
• Eligibility: Generally, students who take loans for undergraduate or postgraduate education, particularly in priority sectors like science, technology, and engineering, are eligible.
• Impact: It ensures that students can pursue their education without the undue burden of high-interest loans.

e. Other Beneficiaries

• Women Entrepreneurs: Some schemes target women in entrepreneurship, providing them with subvented interest rates to encourage business startups or expansion.
• Low-Income Families: Interest subvention can be provided to families falling below the poverty line to enable them to access loans for small-scale business or housing.

4. Mechanism of Interest Subvention Scheme

a. Interest Subvention Model

Under the ISS, the government provides a percentage of the total interest cost on the loan. This reduces the effective rate of interest that the borrower has to pay to the financial institution.

• Example: If a borrower takes a loan at an interest rate of 12%, the government may offer an interest subvention of 4%, bringing the effective rate down to 8%.
• The subvention is paid directly to the lending bank or financial institution, and the borrower only pays the reduced interest rate.

b. Repayment Period

The interest subvention is typically provided for a specified period, such as the first 5 years of the loan tenure. After this period, the borrower is required to repay the loan at the prevailing market interest rate.

5. Application Process for ISS

• Eligibility Verification: Borrowers must meet the specific eligibility criteria set out for the sector they belong to (e.g., farmers, MSMEs, students, etc.). Financial institutions often have processes in place to verify eligibility.
• Loan Disbursement: After loan approval, the bank or financial institution disburses the loan amount. The interest subvention is then applied to the loan during repayment.
• Government Reimbursement: Once the loan is disbursed, the lending institution claims the interest subvention from the government as per the terms and conditions.

6. Advantages of the Interest Subvention Scheme

a. Affordable Credit

The most significant advantage of ISS is that it lowers the cost of borrowing, especially for vulnerable groups and sectors.

b. Encouraging Growth in Priority Sectors

The ISS encourages investment and activity in sectors like agriculture, MSMEs, and housing, which are critical to the economy's development.

c. Financial Inclusion

By making credit more affordable, the scheme helps bring previously underserved groups, such as farmers, students, and women entrepreneurs, into the formal financial system.

d. Economic Stability

Providing affordable credit to key sectors can help stabilize the economy, boost production, and create employment opportunities, which benefits the overall economy.

e. Promoting Social Welfare

ISS, particularly in housing and education, enhances the quality of life for citizens by making essential services like homes and education more accessible.

7. Challenges and Limitations of the Interest Subvention Scheme

a. Budgetary Constraints

The ISS is financed by the government, and there may be budgetary constraints or delays in the allocation of funds, which can affect the timely implementation of the scheme.

b. Awareness and Accessibility

In some cases, potential beneficiaries may not be fully aware of the scheme or may not know how to access it. This can limit its reach to the intended groups.

c. Complexity in Administration

There may be complex eligibility criteria and documentation requirements, which can make it difficult for small borrowers or new businesses to access the scheme.

d. Limited Impact in Some Sectors

While ISS can help reduce the cost of borrowing, it may not be enough to fully address other issues such as the availability of credit or the high collateral requirements for loans in certain sectors.

8. Conclusion

The Interest Subvention Scheme (ISS) is a valuable government initiative aimed at making credit more accessible and affordable for specific sections of society or sectors. By reducing the interest burden, the scheme facilitates economic growth, supports small businesses, encourages educational pursuits, and promotes homeownership, especially for the underprivileged.

However, challenges such as budget constraints, awareness issues, and administrative hurdles need to be addressed for the scheme's full potential to be realized. If effectively implemented, the ISS can significantly contribute to financial inclusion, social welfare, and the economic development of the nation.

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The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a flagship welfare scheme of the Government of India, launched on February 24, 2019, to provide financial assistance to small and marginal farmers to help them meet agricultural and domestic needs.

 

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme

Key Features of PM-KISAN Scheme

1. Objective: The primary objective of PM-KISAN is to offer direct income support to farmers to enhance their financial condition, assist with crop inputs, and meet domestic needs. It aims to improve the livelihood of farmers and ensure they receive financial aid in times of need.

2. Target Group: The scheme primarily targets small and marginal farmers across the country. Initially, the scheme was focused on these categories, but over time, it has been expanded to cover more beneficiaries.

3. Amount of Financial Support:

   • The scheme provides Rs. 6,000 per year to eligible farmer families.
   • The amount is provided in three equal installments of Rs. 2,000 each, paid every four months.
   • The money is directly transferred into the bank accounts of the beneficiaries through Direct Benefit Transfer (DBT).

4. Eligibility Criteria:

   • Farmer Families: The scheme benefits only families of farmers. A "farmer family" is defined as a family comprising of the farmer and his/her spouse and minor children.
   • Small and Marginal Farmers: The beneficiaries must own up to 2 hectares (5 acres) of agricultural land.
   • Exclusions: The following categories are excluded from the scheme:
     • Institutional landholders (large landowners).
     • Farmers who are former or current holders of constitutional posts (e.g., President, Vice President, Members of Parliament, etc.).
     • State or Central Government employees and their families.
     • Taxpayers (based on income tax brackets).
     • Professional workers like doctors, engineers, lawyers, etc.
     • Former and present Members of Parliament or Legislative Assemblies and Ministers.

5. Implementation Process:

   • Registration: Farmers can apply online through the official PM-KISAN portal, or through Common Service Centers (CSCs), where they can fill in their details.
   • Data Verification: The details provided by farmers are verified by the Revenue Department and state governments to ensure eligibility.
   • Bank Account Linking: To ensure the direct transfer of funds, farmers must have their bank accounts linked with their Aadhaar numbers.

6. How to Apply:

   • Farmers can visit the PM-KISAN official website or visit their nearest Common Service Centers (CSCs) to register.
   • Through the portal, farmers can update their details, check the status of their payments, and apply for the scheme.

7. PM-KISAN Portal: The official website of PM-KISAN is: https://pmkisan.gov.in/ Farmers can use the website to:

   • Register for the scheme.
   • Track the status of their installments.
   • Download beneficiary status, which helps farmers in checking their eligibility and the status of their financial support.

8. Direct Benefit Transfer (DBT):

   • The financial assistance is directly credited into the bank accounts of the beneficiaries.
   • The money can be used for buying agricultural inputs like seeds, fertilizers, and other crop-related expenditures, as well as meeting the household's domestic needs.

9. Benefits:

   • Financial Support: Helps farmers cover input costs and basic living expenses.
   • Boost to Agricultural Productivity: Provides timely financial support, especially at the beginning of a cropping season.
   • Reduction in Farmer Debt: Assists in reducing the burden of loans and debts on small farmers.
   • Increased Stability: Provides a financial cushion, helping farmers maintain their livelihoods despite market fluctuations.

10. Challenges and Criticisms: While PM-KISAN has been largely praised for supporting the farming community, there have been some challenges:

    • Database Issues: The eligibility verification process sometimes faces hurdles due to errors in land records and database inconsistencies.
    • Exclusion of Certain Farmers: Despite efforts to expand coverage, some marginal farmers with small plots of land have not benefited from the scheme.
    • Dependence on Land Records: The scheme’s reliance on land ownership records to determine eligibility has led to some farmers being excluded due to discrepancies in land titles.
    • Implementation Delays: In some areas, farmers have reported delays in receiving payments or issues with bank account linking.

11. Expansion: The scheme has been expanded over time to include a broader range of beneficiaries:

    • Initially, it was limited to small and marginal farmers, but eventually, the government extended its benefits to all farmer families, including those with larger landholdings in some cases.
    • The government has also worked to improve the database and streamline the disbursement process to ensure faster and more efficient transfer of funds.

12. Impact:

    • The PM-KISAN scheme has been hailed as a crucial tool for direct income support to farmers, with a significant number of farmers benefiting across the country.
    • It has been beneficial for crop input purchases, and farmers use it for buying fertilizers, seeds, and pesticides.
    • It has helped alleviate the financial pressure, especially in rural areas where farmers often struggle to meet the high costs of agricultural production.

Conclusion:

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a transformative initiative by the Government of India to provide much-needed financial assistance to small and marginal farmers. By offering direct income support, it aims to improve farmers' economic stability, enhance agricultural productivity, and improve their standard of living.

If you need any additional details or help regarding registration or eligibility, feel free to ask!

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Agriculture takes centre stage in Budget 2025-26 with 9 new missions From the ‘Dhan-Dhaanya’ scheme to missions for pulses, high-yield seeds, vegetables and cotton — new announcements aim to drive growth and resilience, even as allocations shrink

Agriculture was in the spotlight in Union Finance Minister Nirmala Sitharaman’s much-awaited Budget speech on February 1, 2025, during which she announced at least nine new missions or programmes focused solely on the sector, while recognising farmers’ role in making the country the “food basket of the world.”

Sitharaman referred to agriculture as the “first engine” of development and began her speech by outlining the government’s priorities for the sector, which has long been the backbone of the rural economy. The announcements were seen as an acknowledgement of the sector’s inextricable link to the livelihoods of millions.

Indeed, agriculture has been one of the few sectors to demonstrate stable growth, playing a key role in driving India’s economic development. However, it has continued to struggle with issues related to farmer welfare and income improvement.

Nevertheless, the Union Ministry of Agriculture and Farmers’ Welfare saw an overall reduction of 2.5 per cent in its total allocation — from Rs 1.41 lakh crore (Rs 1,41,351.56 crore) to Rs 1.37 lakh crore (Rs 1,37,756.55 crore) in the revised estimates (RE) for 2024-25.

 

Sitharaman proposed nine programmes, which she stated were designed to spur agricultural growth and productivity:

1. ‘Prime Minister Dhan-Dhaanya Krishi Yojana’: This will be implemented in partnership with states through the convergence of existing schemes in 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The programme is expected to benefit 17 million farmers. However, it is not immediately clear from the budget document how much funding will be allocated to this scheme.

2. ‘Mission for Aatmanirbharta in pulses’: A six-year mission with an allocation of Rs 1,000 crore for the financial year 2025-26 with focus on toor (pigeon pea), urad (black gram), and masoor (red lentil). Under this scheme, central agencies such as NAFED (National Agricultural Cooperative Marketing Federation) and National Cooperative Consumers’ Federation will procure these pulses “as much as offered” over the next four years from farmers who register with these agencies and enter into agreements.

3. Comprehensive programme for vegetables and fruits: This will be launched in partnership with states to promote production, efficient supplies, processing, and remunerative prices for farmers. The mission has been allocated Rs 500 crore for 2025-26. 

4. Mission for cotton productivity: A five-year mission with an allocation of Rs 500 crore for FY 2025-26, focusing on improving the productivity and sustainability of cotton farming while promoting extra-long staple cotton varieties.

5. National Mission on High-Yielding Seeds: This mission will target the commercial availability, development, and propagation of over 100 high-yielding, pest-resistant, and climate-resilient seed varieties released since July 2024. It has been allocated Rs 100 crore for FY 2025-26. 

6. Makhana board in Bihar: A makhana board will be established in Bihar to improve the production, processing, value addition and marketing of makhana (foxnut). With an allocation of Rs 100 crore for FY 2025-26, the board will provide training and support to makhana farmers, who will be organised into farmer producer organisations (FPO).

7. ‘Rural prosperity and resilience programme’: This initiative will be launched in partnership with states to address underemployment in agriculture through skilling, investment, and technology. It will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.

8. Fisheries: Sitharaman announced the government’s plan to introduce an enabling framework for the sustainable harnessing of fisheries from India’s Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands. In this regard, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) received a substantial budgetary increase of 64 per cent for 2025-26 compared to the revised estimates for 2024-25.

9. Urea plant in Assam: A plantwith annual capacity of 1.27 million tonnes will be set up at Namrup, Assam to further augment the supply of urea.

10. 
    

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The End of Endosulfan: A Story of Toxicity, Resistance, and Transformation in Indian Agriculture

29 January 2025, New Delhi: For decades, Endosulfan reigned as one of the most widely used pesticides in Indian agriculture. From the fields of cotton in Maharashtra to the vegetable farms of Punjab, Endosulfan became synonymous with pest control, increased productivity, and agricultural prosperity. Yet, beneath its ability to eliminate pests and boost yields, lay a dark undercurrent of health hazards and environmental destruction. The story of Endosulfan in India is not merely one of a pesticide, but of a nation grappling with the cost of agricultural progress, the consequences of unchecked chemical usage, and the eventual awakening to the need for change.

The Rise of Endosulfan in India

Introduced in the 1970s, Endosulfan quickly became a go-to pesticide for Indian farmers. Its broad-spectrum effectiveness against a wide range of pests, including bollworms on cotton, aphids on vegetables, and mosquitoes on tea plantations, made it indispensable. For farmers, the promise was simple—more crops, less damage, and better yields. Brands like Syngenta India and Excel Crop Care brought Endosulfan to the market, and it quickly gained traction due to its cost-effectiveness and potency.

Endosulfan’s application was vast. From the rich cotton fields of Gujarat to the terraced tea estates of Darjeeling, it was hailed as the answer to rising pest problems that plagued India’s crops. For years, its use increased, and with it, so did agricultural productivity. Cotton yields soared, vegetables grew unhindered by aphids, and the country’s agricultural economy seemed to flourish.

The Hidden Cost: Health and Environmental Toll

But as time passed, cracks in this seemingly perfect agricultural solution began to show. Farmers, often the first to face the brunt of pesticide exposure, started reporting health issues that could not be ignored. The toxin found in Endosulfan wasn’t just impacting pests—it was affecting people.

In the early 2000s, disturbing reports began to surface about the impact of Endosulfan on rural communities. One of the most notorious cases came from the Uran town incident in Maharashtra, where Endosulfan use on cotton farms led to contamination of local water sources. The repercussions were devastating: reports of birth defects, neurological disorders, cancers, and a mysterious surge in mental health problems among those exposed to the chemical. Studies by the Indian Council of Medical Research (ICMR) confirmed that the chemical’s persistence in the environment and its ability to accumulate in human tissues were contributing to a rising health crisis (ICMR, 2001).

The toll on the environment was just as alarming. Contamination of soil, water bodies, and non-target organisms such as bees, birds, and fish painted a grim picture of Endosulfan’s long-lasting impact on biodiversity. Its persistence in the ecosystem meant that its poisonous legacy was felt for years after its application.

The Call for Change: The Battle to Ban Endosulfan

As awareness grew, calls to ban Endosulfan intensified. Activists, environmentalists, and affected communities rallied for its removal, pointing to the mounting evidence of its deadly effects. The issue gained national attention, with the Supreme Court of India stepping in to make a decisive ruling.

In 2011, after years of scientific research, legal battles, and protests, the Indian government, under the guidance of the Central Insecticide Board and Registration Committee (CIBRC), announced a comprehensive ban on the production, sale, and use of Endosulfan. The decision was a turning point in India’s agricultural history, marking the end of an era dominated by this dangerous pesticide.

The ruling came after a damning report by the Supreme Court of India, which had received evidence of widespread health and environmental damage. The government, bowing to the growing pressure from civil society and environmental groups, decided that the costs of continued use outweighed the benefits. The ban, however, was not without controversy. Many farmers, accustomed to Endosulfan’s efficiency, feared that the loss of this powerful tool would lead to increased pest damage and lower crop productivity.

The Transition: From Dependency to Sustainability

While the immediate reaction to the ban was one of resistance, the long-term effects turned out to be more positive than expected. As farmers were forced to seek alternatives, a transformation began to take shape in Indian agriculture. The ban spurred the growth of Integrated Pest Management (IPM) systems, which rely on a combination of biological control methods, resistant crop varieties, and minimal pesticide use. This shift encouraged the development of safer, more sustainable alternatives to chemical pesticides, such as biopesticides and neem-based solutions.

A significant change in India’s farming landscape occurred as farmers adopted crop rotation, soil health management, and companion planting, practices that not only reduced pesticide dependence but also enhanced soil fertility and biodiversity. The role of agricultural extension services and farmer awareness programs also increased, helping farmers transition smoothly from chemical-heavy practices to more sustainable ones.

In the years following the ban, India witnessed a reduction in pesticide-related illnesses and environmental contamination. The success of alternatives, like Bt cotton and bio-pesticides, highlighted that Indian agriculture could continue to thrive without Endosulfan. Although challenges remain, the shift towards sustainable practices has begun to bear fruit.

A Legacy of Change

The story of Endosulfan in India is one of progress, but also one of reckoning. What began as a tool to fight pests and increase agricultural productivity ultimately became a catalyst for change, driving India towards more sustainable and eco-friendly farming practices. The Endosulfan ban not only transformed the agricultural sector but also set the stage for a more responsible approach to pest management—one that considers the health of farmers, consumers, and the environment.

Though the battle against Endosulfan ended with a ban, the journey is far from over. As India continues to evolve its agricultural practices, the lessons learned from the Endosulfan era serve as a reminder of the delicate balance between progress and sustainability. In the end, the real victory lies not in the eradication of a single pesticide, but in the country’s growing commitment to a healthier, greener future for all.

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Nagpur: Subhash Sharma, a farmer from Yavatmal, a district in Maharashtra that tragically earned notoriety for its high rate of farmers' suicides, has been selected for the Padma Shri award for his pioneering work in natural farming.

A symbol of resilience and innovation, Sharma's life and work stand as a testament to the power of sustainable agriculture, demonstrating how harmony with nature can lead to both ecological and economic well-being.

In a region where despair often overshadows hope, Sharma has been a beacon of change. For decades, he advocated sustainable farming practices, emphasising three core principles he believes are crucial for the future of Indian agriculture: symbiosis with nature, harmony with all living organisms, and independence from market forces.

Sharma's journey took a pivotal turn in 1994 when he decided to abandon chemical farming after his crop yields began to plummet. In the following years, he turned to natural farming methods, and by 2000, his efforts bore fruit — his farm's output soared from 50 tonnes to 400 tonnes, all while drastically reducing the input costs. His belief that chemical farming is destructive, while natural farming is creative, is reflected in his results. "Natural farming is a way of restoring balance," he says. "It's about nurturing the land, not exploiting it."

His farm, situated near Darwha in Yavatmal, has become a learning hub for farmers seeking to embrace organic and natural farming practices. Sharma, whose farm is a living example of sustainable agriculture, teaches that a successful farmer must do four things: rear cattle, plant trees, facilitate the movement of birds, and make optimal use of biomass.

Sharma's philosophy goes beyond farming techniques; it's a call to look at the root causes of farmer distress. Speaking on the issue of farmer suicides, he urges a shift in perspective. "Think beyond farmer suicide. Understand why a farmer commits suicide," he says.

"Instead of just sympathising with him, empathise with him. Give a farmer the right price for his produce. If we don't, he will end up working as a labourer at a construction site in your city. What do you value more — a house or food?," he adds.

In his 70s, Sharma continues to work tirelessly on his farm until late in the evening. His dedication to his land and his community is unwavering, and it was while returning from his farm that he first learned of his Padma Shri recognition. "Earth, water, indigenous seeds, crop planning, and labour are the five principles of natural farming. The govt must recognise the importance of natural farming and create policies accordingly. Given the future challenges in agriculture, farmers must shift towards natural farming," he says.

Sharma's message is simple but profound: for the future of agriculture, we must turn to nature, not away from it.

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UP sugar mills want status-quo on SAP due to rising cost of production

Sugar mills

UP is one of India’s largest sugarcane-producing states in the country and home to the largest number of private sugar mills in the country. (File Image)

Sanjeeb Mukherjee Delhi

3 min read Last Updated : Jan 16 2025 | 11:30 PM IST

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Amid murmurs of discontentment among farmers, private sugar mills in Uttar Pradesh have approached the state government not to implement any further hike in advised price (SAP) for cane for the 2024-25 season as falling recovery rates have significantly pushed up their production costs.

 

Sugar season runs from October to September.

 

Sources said the sugar mills in the private sector, which constitute bulk of the state’s annual sugar production said in the current 2024-25 sugar season recovery has dropped by a steep 0.3-1.0 per cent which has pushed up their production cost by an average Rs 140 per quintal (assuming average recovery drop to be 0.4 per cent).

 

 

The millers also said that while one hand production costs have risen on the other hand there has not been any significant rise in sugar prices till the end of December 2024 as compared to the same period last year.

 

Recovery rate is the quantum of sugar derived after processing a definite weight of sugarcane.

 

 

UP, along with Punjab, Haryana and Uttarakhand have their own price at which sugar mills have to purchase cane from farmers which is called SAP.

 

In the 2023-24 sugar season, the Uttar Pradesh government had raised the state advised price (SAP) of all sugarcane varieties by Rs 20 per quintal to Rs 370 for early sown varieties.

 

UP is one of India’s largest sugarcane-producing states in the country and home to the largest number of private sugar mills in the country.

 

Of the total 120 sugar mills in UP, the private sector leads with roughly 93 plants, followed by the cooperative sector with 24 units and UP State Sugar Corporation (UPSSC) with 3 units.

 

Nearly 5 million farm households are directly associated with sugarcane farming in UP and cane by-products including sugar, ethanol, molasses etc generate an annual economy of over Rs 50,000 crore in the state.

 

Meanwhile, the UP Sugar Mills Association (UPSMA) in their representation to the state government also said that SAP should also not be raised as the minimum sale price of sugar has not been revised since 2019 that has made the cost of availing loans against it higher. 

 

On the increase in production cost, the millers said production costs have also risen due to low rate of transport rebate being allowed despite much higher increase in freight cost.

 

The millers also said that another reason for increase in the cost of production of sugar is the low administrative price for molasses reserved for the country in comparison to its real market price which leads to mills losing around Rs 110 for each tonne of cane crushed.

 

The salary burden on sugar mills has also increased by almost 12 per cent due to implementation of wage board settlement.

 

The cost of inputs like consumables such as lubricants have also increased which has further pushed up production cost and packaging costs have risen due to mandatory jute packaging norms.

 

“In view of all these it is strongly requested to keep the State Advised Price (SAP) of sugarcane unchanged for 2024-25 as the industry is in no position to afford another hike in costs,” the UPSMA letter said.

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Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a government scheme aimed at providing financial support to small and marginal farmers in India. Launched in 2018, the scheme seeks to ensure the welfare of farmers by supplementing their income, helping them meet agricultural needs and improve their livelihoods.Here is a complete breakdown of PM-KISAN:

1. Objectives of PM-KISAN

The primary objectives of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme are:

• Income Support: To provide financial assistance to small and marginal farmers to meet their agricultural needs and sustain their livelihoods.
• Reduction of Farmer Distress: To reduce the economic distress faced by farmers, particularly in terms of purchasing agricultural inputs like seeds, fertilizers, and equipment.
• Enhancing Livelihoods: To improve the economic condition of farmers, thus leading to better food security and quality of life for them and their families.
• Support for Agriculture: To increase investments in agricultural and allied activities, thus promoting overall rural development.

2. Features of PM-KISAN

• Direct Income Support: The government transfers a sum of money directly into the bank accounts of eligible farmers. This financial aid is meant to provide them with the support required for farming expenses.
• Annual Payment: Each eligible farmer receives ₹6,000 annually in three equal installments of ₹2,000 each, payable every four months.
• No Restriction on Usage: The assistance is provided to farmers without any restriction on how they use the money. The funds can be used to cover agricultural expenses, such as buying seeds, fertilizers, equipment, or to meet household needs.
• Digital Transfer: Payments are made directly into the bank accounts of farmers, ensuring transparency and reducing delays or leakages.

3. Eligibility Criteria for PM-KISAN

To avail the benefits of PM-KISAN, the farmers must meet the following eligibility criteria:

• Small and Marginal Farmers: Only small and marginal farmers with landholding of up to 2 hectares are eligible for the scheme.
• Indian Citizens: The scheme is applicable only to Indian citizens who are actively engaged in farming.
• Land Ownership: The farmer must own the land. The ownership can be through individual ownership, joint ownership, or a family-owned plot.
• Exclusions: The following categories of people are excluded from the scheme:
  • Institutional landholders
  • Former and present holders of constitutional posts (e.g., Presidents, Vice Presidents, Governors, etc.)
  • Ministers and Members of Parliament or Legislative Assemblies
  • Individuals in higher-income categories, such as those in professions like doctors, engineers, and government employees
  • Persons owning agricultural land in urban areas

4. How to Apply for PM-KISAN

Farmers can apply for PM-KISAN in the following ways:

• Self-registration: Farmers can apply through the official PM-KISAN portal (pmkisan.gov.in) or via the PM-KISAN mobile app.
• PM-KISAN Seva Kendra: Farmers can visit the nearest PM-KISAN Seva Kendra or Common Service Centers (CSCs) to register.
• State Government Enrollment: State governments and local authorities also facilitate the registration process and update the data.

Steps for Application:

1. Visit the Official Website: Go to the official PM-KISAN portal (pmkisan.gov.in).
2. Click on "New Farmer Registration": Fill in the details, including Aadhaar number, bank account details, and other required personal information.
3. Verify: Once registered, the application will be processed. Verification may include checking the eligibility and verifying the land ownership.
4. Status Check: Farmers can check their application status and payment details on the website or through SMS updates.

5. PM-KISAN Beneficiaries

• The beneficiaries of the scheme are primarily small and marginal farmers across the country. The program focuses on those who are most in need of support for agricultural expenses.
• As of 2021, the scheme has benefitted over 11 crore farmers in India.

The government has expanded the scope of the scheme over time, and now it includes a larger segment of farmers, including those with larger landholdings in some cases, depending on state-specific criteria.

6. Implementation Mechanism

• The scheme is implemented by the Ministry of Agriculture & Farmers Welfare, Government of India.
• State Governments and Union Territories play a vital role in identifying eligible farmers and ensuring the smooth transfer of benefits to them.
• The scheme is funded by the Central Government and implemented by the Ministry of Agriculture and Farmers Welfare in collaboration with the Ministry of Rural Development.

7. Timeline and Installments

• The annual payment of ₹6,000 is divided into three equal installments of ₹2,000 each.
• Payments are generally made in the following manner:
  • First Installment: Between April and July.
  • Second Installment: Between August and November.
  • Third Installment: Between December and March.

Farmers are notified about the dates and amount via SMS alerts or through updates on the official PM-KISAN portal.

8. PM-KISAN Status Check

Farmers can check the status of their payments or application by:

1. Visiting the PM-KISAN Website: On the official portal, there is an option to check the status under "Farmer Corner."
2. SMS Updates: Beneficiaries receive SMS updates regarding the installment payments sent to their bank accounts.
3. Mobile App: The PM-KISAN mobile app also provides an easy way to check payment status and other details.

9. Impact of PM-KISAN

• Improved Financial Security: By providing direct income support, PM-KISAN helps farmers meet their financial needs and reduce dependence on informal sources of credit.
• Increased Agricultural Productivity: Farmers can invest in better seeds, fertilizers, and equipment, leading to improved agricultural productivity.
• Reduction of Economic Distress: It helps in reducing the financial stress on farmers, especially smallholders, who often struggle with irregular incomes and agricultural debt.
• Inclusivity: PM-KISAN has reached millions of small farmers, ensuring that a large portion of rural India benefits from the initiative.

10. Challenges and Criticism

While PM-KISAN has been widely praised for supporting farmers, there are some challenges and criticisms:

• Exclusion Errors: Some genuine farmers may have been excluded due to issues with database entry or incomplete documentation.
• Limited Coverage: The scheme primarily targets small and marginal farmers with landholdings of up to 2 hectares, leaving out large landowners who might also require support.
• Implementation Issues: There have been instances of delays in payments or discrepancies in data, leading to difficulties for farmers in receiving their entitlements.

11. Future of PM-KISAN

The government continues to evolve the PM-KISAN scheme with the aim of ensuring that all eligible farmers are covered and receive the financial aid they need. There are discussions around expanding the scheme, improving the database, and ensuring that more marginalized groups, such as tenant farmers, benefit from such initiatives.

Conclusion

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has become one of the most important welfare schemes for farmers in India. By providing direct income support, it aims to alleviate the financial burden on small and marginal farmers, improve their agricultural productivity, and reduce farmer distress. Despite some challenges, the scheme is a step toward improving the economic condition of the agricultural community and promoting rural development in India.

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