Research into various aspects of vulnerability and poverty has played a key role in shaping cash transfer systems. Cash-based direct benefit transfers (DBT) are frequently discussed, as they help reduce corruption and limit intermediary involvement, which often impedes policy implementation in countries like India. Small and marginal farmers (SMFs), constituting 86% of India’s farming population, are essential for sustainable agricultural growth and ensuring food and nutrition security. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme provides Rs.6000 annually to the farmer families via DBT mechanism. Despite reports and information from various government sources, significant concerns remain regarding the performance of PM-KISAN scheme in improving living conditions of SMFs.
For having the highest number of SMFs, a research study was conducted in Bihar and Uttar Pradesh. Two cluster of villages from each of these two states were chosen by simple random sampling (SRS) method. An
The beneficiaries of the scheme had an average LI score of 0.396, while non-beneficiaries had a score of 0.366. Propensity Score Matching (PSM) was employed to compare the beneficiaries and non-beneficiaries in order to determine the impact of the scheme. In the Livelihood Index of beneficiaries, in comparison to non-beneficiaries, there was a significant improvement of 3.34 to 4.13 percentage points, according to the analysis, which utilized a variety of matching algorithms.
Implications from the study suggests that PM-KISAN should be integrated into a broader rural development strategy to maximize multiplier effects. By combining cash transfers with complementary initiatives like modern technology adoption and high-yield seeds, farmers can make productive investments that could enhance their livelihood status.