PM Kisan Samman Nidhi: Ensuring Financial Security for Farmers

In an attempt to mitigate financial distress in the field of agriculture across India, the government launched the PM Kisan Samman Nidhi scheme on December 1, 2018. The importance of financial stability for farmers, who comprise a substantial part of India’s workforce, cannot be overstated. Hence the PM Kisan Samman Nidhi offers substantial relief to small and marginal farmers by ensuring a minimum fixed income.

The PM Kisan Samman Nidhi scheme, as per current guidelines, promises an income support of INR 6,000 in annual installments to the eligible landholding farmer families across the nation. This form of support provides yearly guaranteed income, thus helping to assuage the financial burden upon farmers. This scheme also ensures farmers are not left at the mercy of unpredictable crop yields and prices.

Apart from the INR 6,000 annual income support, the PM Kisan Samman Nidhi scheme also unlocks various other benefits for the farmers. Under this scheme, farmers are entitled to INR 2 lakh accidental insurance cover for a nominal premium of INR 12 per annum. This heightened financial security could help safeguard farmers from accidental tragedies that could lead to catastrophic financial circumstances.

Another significant aspect of the PM Kisan Samman Nidhi scheme highlights the INR 2 lakh life insurance cover for farmers at an extremely low-cost premium of INR 330 per annum. While the scheme doesn’t replace the need for a comprehensive life insurance plan, it definitely serves as an important safety net.

To supplement the benefits of the PM Kisan Samman Nidhi, the government has re-introduced the Kisan Vikas Patra (KVP) scheme, a popular long-term savings instrument. The KVP provides a guaranteed return on investment and doubles the invested amount over a span of 124 months at the current rate of 6.9% p.a. compounded annually. The minimum investment in this scheme is INR 1000, and there’s no upper limit.

The combined advantages of the PM Kisan Samman Nidhi and Kisan Vikas Patra not only provide immediate financial relief but also safeguard the long-term financial interests of the farmers. The dual assurance of annual income support and assurance of returns upon investment provides a two-way security to the farming community.

In conclusion, the PM Kisan Samman Nidhi scheme and the Kisan Vikas Patra together are effective measures enforced by the government to improve the monetary conditions for the farmers. However, every farmer or investor must bear in mind that the financial market, like any other, is susceptible to risks. Therefore, the onus is upon the individual to weigh the pros and cons before making a decisive move.

Disclaimer:

This article aims to provide a general understanding and should not be considered financial advice. The benefits or results may vary, and it is advisable to consult with a financial advisor or do your own research before making any investment decisions.

Summary:

The Indian Government initiated the PM Kisan Samman Nidhi scheme in 2018 to offer financial relief to farmers by promising an income support of INR 6,000 annually. This scheme also provides an accidental insurance cover of INR 2 lakh for a nominal premium and a low-cost life insurance cover, thereby ensuring complete financial security for farmers. The government has further bolstered this scheme by reintroducing the Kisan Vikas Patra, a long-term savings instrument offering a guaranteed return on investment. The convergence of these schemes promises immediate financial relief and long-term financial security for farmers. However, it is essential for investors to be aware of the possible risks involved in financial markets and make judicious and well-researched decisions.