The Indian government is contemplating the PM Kisan Bhai scheme, a lifeline for small-scale farmers to enhance their income by providing better control over when to sell their produce.
Warehousing Rental Subsidy
Under this part of the scheme, the government proposes to subsidize the cost of storing crops. For instance, if a farmer can’t get a good price for their potatoes right after harvest, they can use a warehouse to store them until prices improve.
Prompt Repayment Incentive
Farmers who promptly repay their loans may receive bonuses, akin to earning rewards for paying credit card bills on time.
Financial Allocation and Digital Integration
The scheme is backed by a Rs.170 crore budget, integrating with e-NAM to potentially ensure fairer pricing for farmers’ crops.
Securing enough storage facilities and convincing banks to provide loans against the stored crops are key hurdles that need to be addressed for the scheme’s success.
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