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VOL. 6, ISSUE 4 (2024)
Impact of PM-KISAN on income distribution among farm households
Authors
Shatrughan Kumar
Abstract
The Pradhan Mantri Kisan Samman Nidhi
(PM-KISAN) scheme, launched in February 2019, aims to provide financial support
to small and marginal farmers in India. This study evaluates the impact of
PM-KISAN on income distribution among farm households, focusing on its
effectiveness in reducing income inequality. Using data from the National Sample
Survey Organization, the study employs the Gini coefficient and Theil Index to
assess changes in income distribution before and after the implementation of
PM-KISAN. Results show a decline in income inequality, with both the Gini
coefficient and Theil Index indicating a more equitable income distribution.
The average monthly income of farm households has increased from ₹11,000 in
2018-19 to ₹15,000 in 2022-23, with a notable reduction in the proportion of
households earning less than ₹3,000 per month. While the scheme benefits small
and marginal farmers the most, large farmers gain less due to the fixed
transfer amount. The study also highlights an increase in income
diversification among farm households, suggesting a positive shift toward more
sustainable livelihoods. Despite the successes, the scheme’s fixed transfer
amount may need adjustments to address inflation and the changing economic
realities of farm households. This research underscores the need for further
reforms to enhance the scheme’s impact on reducing rural poverty and improving
agricultural sustainability.
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Pages:9-12
How to cite this article:
Shatrughan Kumar "Impact of PM-KISAN on income distribution among farm households". International Journal of Commerce and Economics, Vol 6, Issue 4, 2024, Pages 9-12
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