Impact of Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) After Five Years (GS Paper 2, Polity)
Why is it Significant?
- On September 12, 2024, the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) marks its fifth anniversary.
- Launched in 2019, this scheme was designed to offer social security to India’s small and marginal farmers, a demographic that constitutes a significant portion of the rural workforce.
- The scheme's five-year journey is noteworthy for assessing its impact and effectiveness.
Understanding PM-KMY:
Objective and Eligibility:
- PM-KMY aims to provide a pension scheme for Small and Marginal Farmers (SMFs), defined as those with land holdings of up to two hectares.
- The scheme's central goal is to offer financial stability in retirement to this vulnerable group, ensuring they are not left in dire straits after their working years.
Current Statistics and Reach:
- As of August 2024, the scheme has enrolled approximately 23.38 lakh farmers.
- Notable participation is observed in Bihar and Jharkhand, while Uttar Pradesh, Chhattisgarh, and Odisha also show significant registration figures.
- This broad engagement reflects growing awareness and the scheme's relevance in safeguarding the economic future of small-scale farmers.
Core Benefits of PM-KMY:
Pension Contributions:
- Monthly contributions vary from Rs 55 to Rs 200, depending on the subscriber’s age at enrollment.
- The Central Government matches the subscriber's contribution, effectively doubling the amount in the pension fund.
Pension Entitlements:
- Upon reaching 60 years of age, subscribers are guaranteed a minimum monthly pension of Rs 3,000.
- In case of the subscriber’s death, the spouse is entitled to a family pension of Rs 1,500 per month, provided they are not already a beneficiary.
Flexibility and Withdrawal:
- Subscribers who exit the scheme before age 60 receive their contributions plus interest.
- If the subscriber dies while receiving the pension, the spouse receives Rs 1,500 per month. Any remaining funds after the deaths of both subscriber and spouse are returned to the pension fund.
Management and Implementation:
Pension Fund Management:
- The Life Insurance Corporation of India (LIC) manages the pension fund.
Registration and Facilitation:
- Enrollment is facilitated through Common Service Centres (CSCs) and state governments, ensuring widespread reach and accessibility.
Complementary Schemes:
- PM-KMY complements other government initiatives such as Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which provides Rs 6,000 per year to all landholding farmers, and various agricultural schemes aimed at improving farm productivity and sustainability.
Critical Analysis:
Positive Impacts:
Financial Security:
- PM-KMY addresses the critical need for financial security among SMFs, who often face unstable incomes and high vulnerability during old age.
- The guaranteed pension provides a safety net, ensuring a basic standard of living.
Increased Awareness:
- The scheme's growing enrollment figures indicate increased awareness and acceptance among farmers, suggesting that it effectively meets a critical need.
Challenges and Considerations:
Enrollment Barriers:
- Despite its success, challenges such as inadequate outreach in remote areas and limited digital literacy among farmers might hinder broader participation.
Pension Adequacy:
- The guaranteed pension of Rs 3,000, while beneficial, may not fully cover the needs of all beneficiaries, especially given the rising cost of living and inflation.
Implementation Issues:
- Delays and inefficiencies in scheme management or fund disbursement can undermine its effectiveness.
- Continuous monitoring and improvements are essential to address such issues.
Conclusion:
- The Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) has made significant strides in enhancing financial security for India's small and marginal farmers over the past five years.
- By offering a structured pension scheme, PM-KMY has filled an essential gap in the social safety net for rural populations.
- However, addressing enrollment barriers and ensuring the adequacy of pension benefits will be crucial for further success.
- The scheme stands as a testament to the government's commitment to supporting its agricultural workforce, reflecting a positive step toward rural welfare and economic stability.
