Securing Farmers’ Future: The Role of Pradhan Mantri Kisan Maandhan Yojana in Pension Provision

India is home to more than 140 million small and marginal farmers who constitute about 86% of the total agricultural landholders in the country. These farmers are often vulnerable to various risks such as crop failure, market fluctuations, natural disasters, and health emergencies. Moreover, they have limited access to formal social security schemes that can provide them with a regular income after retirement. As a result, many of them continue to work in old age or depend on their family members for financial support.

To address this challenge, the Government of India launched the Pradhan Mantri Kisan Maandhan Yojana (PMKMY) on September 12, 2019. PMKMY is a voluntary and contributory pension scheme for all landholding small and marginal farmers in the age group of 18 to 40 years. The scheme aims to provide old age protection and social security for these farmers by ensuring a minimum assured pension of Rs 3000 per month after attaining the age of 60 years.

Features of PMKMY

• PMKMY is implemented by the Ministry of Agriculture and Farmers Welfare in collaboration with the Common Service Centres (CSCs) and Life Insurance Corporation of India (LIC).
• The scheme covers all small and marginal farmers who have cultivable land up to 2 hectares as per the land records of the states and union territories as of August 1, 2019.
• The farmers have to make monthly contributions ranging from Rs 55 to Rs 200 depending on their entry age till they reach the age of 60 years. The central government also makes an equal contribution to the pension fund.
• The farmers can enroll themselves in the scheme through the CSCs or online through the PMKMY portal (https://www.pmkmy.gov.in/). They have to provide their Aadhaar number, mobile number, bank account details, and landholding documents.
• The farmers can opt to exit the scheme at any time before attaining the age of 60 years. In such cases, they will receive their share of contribution along with interest as per the savings bank rate or the actual interest earned by the pension fund, whichever is higher.
• In case of death of the farmer before attaining the age of 60 years, the spouse can continue with the scheme by paying the remaining contributions or exit by receiving the farmer’s share of contribution along with interest.
• In case of death of both the farmer and the spouse after attaining the age of 60 years, no pension will be paid to their heirs and the corpus will be credited back to the fund.
• The LIC is responsible for managing the pension fund, disbursing the pension amount, and providing life insurance cover to the beneficiaries.

Benefits of PMKMY

• PMKMY provides a regular income to the small and marginal farmers after retirement, which can help them meet their basic needs and cope with financial shocks.
• PMKMY also provides a life insurance cover of Rs 2 lakh to the beneficiaries in case of death due to any cause during the contribution period.
• PMKMY enhances the dignity and social status of the small and marginal farmers by recognizing their contribution to the nation’s food security and rural economy.
• PMKMY encourages savings and financial inclusion among the small and marginal farmers by linking them with formal banking channels and digital platforms.
• PMKMY complements other government schemes such as Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), etc., that aim to improve the income and welfare of the farmers.

Progress and Impact of PMKMY

• According to official data, as of January 17, 2024, more than 10 crore small and marginal farmers have registered under PMKMY across India.
• Out of these, more than 1.5 crore farmers have started receiving monthly pension of Rs 3000 after reaching the age of 60 years.
• The central government has disbursed more than Rs 54,000 crore under PMKMY till date.
• The scheme has also generated a corpus fund of more than Rs 1 lakh crore that is invested in government securities by LIC.
• The scheme has received positive feedback from beneficiaries who have expressed satisfaction and gratitude for receiving a regular income support in their old age.

PMKMY is a landmark initiative that can transform the lives of millions of small and marginal farmers in India by providing them with a dignified and secure retirement. It is a testament to the government’s commitment to the welfare and empowerment of the farmers who are the backbone of the nation.