Paddy Farmers, Key Beneficiaries of PM-KISAN Dominate MSP Coverage in TN

Approximately one-fifth of the total beneficiaries of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in Tamil Nadu are comprised of paddy cultivators who are eligible for the Minimum Support Price (MSP) program.

Ramasamy, the former Vice-Chancellor of the Tamil Nadu Agricultural University said, " The existing data indicates the need to expand the inclusion of paddy farmers within the Minimum Support Price (MSP) system. Approximately 30% of the total farming population in the state consists of paddy cultivators and there is a need to increase the MSP fold. "

According to official documents of the State government, paddy cultivation constitutes approximately 35% of the total cultivated area. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, initiated in February 2019, aims to enhance the income of farmers' families, irrespective of their landholding size. Each farmer-beneficiary is entitled to receive an annual payment of ₹6,000, distributed in three installments. As per official records, around 4.8 million farmers in Tamil Nadu have enrolled in the scheme. However, the number of farmers receiving payments fluctuates from quarter to quarter. 

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During the previous fiscal year (2022-23), the first quarter witnessed payments to 3,192,733 farmers, while the number declined to 2,091,653 in the third quarter. This decline can be attributed to factors such as some beneficiary farmers not submitting their e-KYC forms and stricter enforcement of exclusion criteria compared to previous years. The Tamil Nadu Civil Supplies Corporation (TNCSC) procures paddy from farmers at MSP rates, supplemented by additional incentives provided by the State government.

According to Dr. Ramasamy, several farmers won't be able to achieve MSP benefits due to their carrying business in an informal manner, and hence no proper land records could be submitted. He also said that according to current reports farmers who can get covered under the MSP system can reap farm benefits and stabilize their farm income.

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Several farmers have also expressed their views. Amongst them, veteran farmer P.R Pandian hailing from Mannargudi, emphasizes the importance of the Minimum Support Price (MSP) aligning with the actual production costs. He told that " If the MSP adequately covers the expenses incurred in cultivation, it would be highly beneficial. Farmers would willingly forgo subsidies from both the Central and State governments if their cultivation costs are fully accounted for. This crucial step would significantly expand the reach of farmers who can benefit from the MSP. "

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