(The Gist of PIB) Pension scheme to secure lives of 5 crore farmers in three years This scheme, in addition to PM-KISAN monetary support will ease economic burden and lead to greater efficiency [JUNE-2019]
(The Gist of PIB) Pension
scheme to secure lives of 5 crore farmers in three years This scheme, in
addition to PM-KISAN monetary support will ease economic burden and lead to
greater efficiency [JUNE-2019]
Pension scheme to secure lives of 5
crore farmers in three years This scheme, in addition to PM-KISAN monetary
support will ease economic burden and lead to greater efficiency
The Union Cabinet, chaired by the Prime Minister Narendra Modi has
approved a new Central Sector Scheme, a historic decision that will empower
farmers across India.
This is a path breaking scheme that will provide pension cover to our
industrious farmers who toil day and night to keep our nation fed.
It is also for the first time since independence that such a pension
coverage has been envisioned for farmers.
It is estimated that 5 crore small and marginal farmers will benefit in
the first three years itself.
The Central Government would spend Rs. 10774.50 crore for a period of 3
years towards its contribution (matching share) for providing social
security cover as envisaged under the scheme.
The salient features of this scheme are:
A voluntary and contributory pension scheme for all Small and Marginal
Farmers (SMF) across the country.
Entry age of 18 to 40 years with a provision of minimum fixed pension of
Rs.3,000/- on attaining the age of 60 years.
For example, a beneficiary farmer is required to contribute Rs 100/ –
per month at median entry age of 29 years. The Central Government shall also
contribute to the Pension Fund an equal amount as contributed by the
After the subscriber’s death, while receiving pension, the spouse of the
SMF beneficiary shall be entitled to receive 50% of the pension received by
the beneficiary as family pension, provided he/she is not already an SMF
beneficiary of the Scheme.
If, the death of the subscriber happens during the period of
contribution, the spouse shall have the option of continuing the Scheme by
paying regular contribution.
Synergy between schemes, prosperity for farmers:
An interesting feature of the Scheme is that the farmers can opt to
allow his/her monthly contribution to the Scheme to be made from the
benefits drawn from the Pradhan Mantri KisanSAmman Nidhi (PM-KISAN) Scheme
Alternatively, a farmer can pay his monthly contribution by registering
through Common Service Centres (CSCs) under MeitY. Fulfilling core promises,
empowering the agriculture sector:
For seventy years after Independence, such a coverage for farmers was
It was in the run up to the 2019 Parliamentary elections that PM
Narendra Modi first mooted such an idea, which gradually found resonance
across the length and breadth of India.
Such a plan was mentioned in the BJP manifesto and in the first Cabinet
meeting after the formation of a new Government, it has become a reality.