The PM-KISAN scheme is a central sector scheme launched in February 2019 by the Hon’ble Prime Minister to supplement the financial needs of land-holding farmers. Under this scheme, the financial benefit of Rs 6,000/- per year in three equal installments is transferred into the bank accounts of farmers' families across the country through Direct Benefit Transfer (DBT) mode. The PM-KISAN scheme is one of the largest DBT Schemes of the World.

A farmer-centric digital infrastructure has ensured the benefits of the scheme reach all the farmers across the country without any involvement of the intermediaries. Maintaining absolute transparency in registering and verifying beneficiaries, the Government of India has so far disbursed over Rs. 3.24 lakh Cr to more than 11 Cr farmers in 17 instalments.

Government of India fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops on the basis of the recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and concerned Central Ministries/Departments. While recommending MSP, CACP considers important factors like overall demand-supply conditions, cost of production, domestic and international prices, inter crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of land, water and other production resources and a minimum of 50 percent as the margin over cost of production.

In order to realize the objectives of MSP Policy, Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Government of India has entered into MOU with the procuring States for procurement of paddy /wheat since procurement of food grains from farmers is mainly carried out by the State govt. agencies . It has been specifically emphasized in the MOU that ”The payment of MSP and bonus, if any, is to be made directly to farmers’ bank accounts only through online procurement system by the Govt. procuring agencies preferably within 48 hours of purchase of paddy/ wheat”.  The entire procurement of foodgrains from farmers is carried out through online portals and online payment of MSP is also made directly into farmers' account. DBT of MSP has brought in responsibility, transparency & real time monitoring in the system.

Additionally, Oilseeds, pulses and copra of Fair Average Quality (FAQ) are procured from registered farmers under Price Support Scheme under Umbrella Scheme of PMAASHA, as per its guidelines, at MSP, in consultation with the concerned State Governments, when market prices of these products fall below the MSP. Under the scheme, the payments are made to the farmers in their individual bank accounts through RTGS or NEFT within three days from the receipt of their produce.

Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI), respectively. CCI has taken several steps to ensure the timely payment to the genuine cotton farmers including implementation of on-the-spot Aadhar-based farmer registration, launched “Cott-Ally” mobile app, and 100% payments to cotton farmers through National Automated Clearing House (NACH) of National Payments Corporation of India (NPCI) directly in their Aadhaar linked bank account. It enables the benefit of MSP scheme only to genuine cotton farmers and thereby sustain their interest in cultivation of cotton. Normally, payment to farmers are made within 7 days.

This information was given by the Union Minister of State for Agriculture & Farmers’ Welfare Shri Ramnath Thakur in a written reply in Lok Sabha today.

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