Prime Minister Narendra Modi’s cabinet met for its first since the new term today evening, and made big moves for farmers and traders.
The cabinet decided to extend the PM-KISAN programme to all farmers ( a scheme that promises poor farmers an annual payout of INR₹ 6,000 in three instalments). The new move will benefit around 15 crore farmers.
Apart from this the Cabinet cleared the pension scheme for traders that would benefit over three crore retail traders and shopkeepers.
The PM-KISAN scheme now stares at an annual expenditure for the year of INR₹ 87,217.50 crore.
The scheme, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) originally was thought out for 12 crore small and marginal farmers holding cultivable land of up to two hectares per year in three instalments of INR₹ 2000, through Direct Bank Transfer.
The first installment was handed over to farmers in February.
The cabinet today approved another 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 agriculture sector grew at 2.9 percent for FY-19 against a growth rate of 5 percent the previous year, therefore today’s decision in a way reflect the government’s intent towards the growing farmer distress in rural India. Moreover, farmers are a key contributor to India’s GDP growth, and have been the backbone of its economy.