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PM Modi will transfer over ₹22,000cr govt equity to FPOs as a new year gift

PM Modi will transfer over ₹22000cr govt equity to FPOs as a new year gift

PM Modi will transfer over ₹22,000cr government equity to FPOs as a new year gift

On January 1, the government plans to transfer over ₹22,000 crores to the bank accounts of nearly 11 crore farmers in the country under the flagship PM-Kisan scheme. In addition, as part of the government equity, approximately ₹30 crores will be given to over 350 farmer producers organisations (FPOs).

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‘Prime Minister Narendra Modi will transfer the benefits to farmers via a virtual event as a new year’s gift,’ sources said. According to sources, Union Agriculture Minister Shri Narendra Singh Tomar has already disseminated information to farmers via SMS about the event when this transfer to bank accounts will happen.

Since the scheme’s inception in February 2019, the Centre has distributed over ₹1.61 lakh crore to farmers through the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN).

There is no struggle

On August 9, Modi facilitated the transfer of approximately ₹19,500 crores to over 9.75 crore beneficiaries for the August-November cycle in a single transaction.

Under the PM-KISAN scheme, an estimated 14 crore eligible land-owning farmers are entitled to receive ₹6,000 each year in three equal instalments. While the estimated number of farmers was based on the 2015-16 Agri census, the Centre is working on a project to determine the exact number by linking digitised land records with PM-Kisan data.

According to sources, 12.6 crore farmers’ data have been received under PM-Kisan, and 1 crore of these are awaiting correction and validation. The union govt allocated ₹65,000 crores to the PM-Kisan scheme for FY22, with farmers receiving ₹44,212 crores so far this fiscal year.

The Centre announced the ₹6,865-crore FPO scheme in February 2020, with the goal of establishing 10,000 new FPOs and ensuring their growth by FY28. The budget allocation for FY22 has been increased by 40% to ₹700 crore.

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Under the scheme, new FPOs are eligible for direct financial assistance of up to ₹18 lakh per year for three years. The Centre contributes a matching equity grant of up to ₹2,000 per farmer member of each FPO, up to a limit of ₹15 lakh per organisation, as well as a credit guarantee facility of up to ₹2 crores per FPO.