The Central government plans to launch a scheme called PM-Kisan Bhai (Bhandaran Incentive) to incentivize small and marginal farmers who struggle to hold their produce in warehouses and wait for better prices. Kisan Bhai is expected to empower farmers, allowing them to retain their crops for a minimum of three months post-harvest.
According to available sources, the Agriculture Ministry’s 10 day deadline to receive feedback ended on Friday after a concept paper was published, and the scheme is likely to be rolled out by December end.
The government hopes that by providing monetary support for storage and promoting e-NWR trade through the online platform e-NAM, farmers will have more control over prices and access to a larger number of buyers.
According to the concept paper, though the pledge finance facility is available to farmers now, its outreach is constrained by the high carryover cost on the farmers and credit risk to the bankers.
The scheme, reportedly, will be implemented on a pilot basis in seven states, including Andhra Pradesh, Assam, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh, with an estimated expenditure of INR 170 crore over three years. It majorly includes Warehousing Rental Subsidy (WRS) and Prompt Repayment Incentive (PRI).
Small and marginal farmers as well as farmer producer organisations (FPOs) will be eligible for the WRS benefit at INR 4 per quintal per month irrespective of rate of warehousing (storage) rental charges and also whether charged per quintal basis or area basis by warehouse operator.
But the government has proposed that the storage incentive will be provided for a maximum of three months. Besides, produce stored for 15 days or less will not be eligible for the subsidy. The incentive will be calculated on a day to day basis.
The scheme PMKM bhai was launched from Ranchi on 12 September 2019. The scheme which was launched by PM Narendra Modi for those farmers who have only 2 hectare or less than it.