The Lok Sabha panel has launched a critical review of the Pradhan Mantri Krishi Vikas Yojana (PMKVY), citing alarming dropout rates and inefficient fund utilization that threaten rural livelihoods. The move comes amid growing concerns over the scheme’s effectiveness in supporting farmers, with reports highlighting a 35% attrition rate in training programs and only 40% of allocated funds being spent in the last fiscal year. The findings have sparked debates over governance and resource allocation in India’s agricultural sector.

PMKVY's Struggles Exposed

The House panel’s analysis, released this week, reveals systemic challenges in PMKVY, a flagship scheme aimed at enhancing agricultural productivity through skill development and financial aid. According to the report, over 1.2 million farmers enrolled in the program between 2020-2023, but nearly 420,000 dropped out due to inadequate training facilities and delayed subsidies. "The lack of follow-up mechanisms has left many farmers without the tools to sustain their operations," said Rajesh Kumar, a panel member from Punjab. The scheme, which allocates ₹1,500 crore annually, has faced criticism for poor implementation, with states like Madhya Pradesh and Uttar Pradesh reporting the lowest fund utilization rates.

House Panel Demands PMKVY Overhaul After High Dropout Rates, Fund Mismanagement — Business Economy
business-economy · House Panel Demands PMKVY Overhaul After High Dropout Rates, Fund Mismanagement

The panel also flagged discrepancies in fund distribution, with ₹2,300 crore unspent in 2022-2023. "This reflects a disconnect between policy design and ground realities," said Dr. Anjali Mehta, an agricultural economist. The report underscores that many beneficiaries, particularly small and marginal farmers, lack access to digital platforms required for subsidy claims, exacerbating inequality. In regions like Odisha and Chhattisgarh, where internet penetration is low, the digital-first approach has left thousands excluded from the scheme.

Impact on Farmers and Local Economies

The fallout from PMKVY’s shortcomings is felt acutely in rural communities, where farmers rely on the scheme for financial stability. In Haryana, for instance, 30% of participants in a 2022 training program reported no improvement in crop yields, citing inadequate technical support. "We invested our savings to join the course, but the promised equipment never arrived," said Ramesh Patel, a farmer from Hisar. Such experiences have eroded trust in government initiatives, with many opting to abandon farming altogether.

The local economy also bears the brunt, as reduced agricultural output affects markets and employment. In Andhra Pradesh, where PMKVY was heavily promoted, a 15% decline in rice production was recorded in 2023, according to the state agriculture department. Small businesses supplying farming inputs, such as seeds and machinery, have seen a 20% drop in sales. "Without stable income, we can’t sustain our shops," said Arjun Reddy, a supplier in Vijayawada. The ripple effects highlight how policy failures in one sector can destabilize entire communities.

Community Response and Concerns

Grassroots organizations and farmer unions have demanded immediate reforms, organizing protests in states like Maharashtra and Tamil Nadu. "The government must prioritize transparency and accessibility over bureaucratic delays," said Meena Devi, a leader of the All India Kisan Sabha. Social media campaigns have amplified these voices, with hashtags like #FixPMKVY trending for weeks. In rural areas, word-of-mouth warnings about the scheme’s inefficacy have discouraged new enrollments, further straining its reach.

Local leaders also point to the lack of coordination between central and state governments as a key barrier. "While the central ministry sets targets, states often lack the infrastructure to implement them," said MP Vijay Singh from Rajasthan. This gap has led to fragmented efforts, with some states like Kerala adopting alternative models to support farmers. However, these initiatives remain underfunded and limited in scope, leaving many in limbo.

What's Next for PMKVY?

The House panel’s findings are expected to trigger a comprehensive review, with recommendations likely to include stricter monitoring, decentralized fund management, and improved digital literacy programs. A government official confirmed that a draft report will be submitted by December, though timelines for implementation remain unclear. "We need to balance accountability with flexibility to address regional disparities," said a senior minister.

For now, farmers remain in a state of uncertainty. In Punjab, where PMKVY was once seen as a lifeline, only 12% of eligible farmers have enrolled in the latest cycle. "We need solutions, not just audits," said Gurpreet Singh, a farmer from Ludhiana. As the panel’s work progresses, the pressure mounts on policymakers to ensure that rural communities are not left behind in the quest for agricultural modernization.

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Business and economy reporter covering Satna's cement sector, MSME news, market trends and industrial development in Madhya Pradesh.