Direct income support
Also called: Income support · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
Direct income support is cash paid straight to farmers, usually per farmer or per acre. It is decoupled from production, which means the payment does not depend on which crop is grown or how much is sold. Because it does not change what farmers choose to grow, it does not distort crop choice. For the same reason it fits the WTO green box, the category of farm support treated as causing little or no trade distortion.
Example
PM-KISAN (2019) pays eligible farmers ₹6,000 a year. State schemes of the same kind include Telangana's Rythu Bandhu and Odisha's KALIA.
Don't confuse with
- Price deficiency payment: this pays the gap between MSP and the market price. The farmer gets it only on crop actually sold, so it is still tied to production.
- Minimum support price (MSP): MSP supports the price of certain crops. Direct income support gives income whatever the crop.
Related concepts
- Economic cost of foodgrains
- Food subsidy
- Input subsidy
- Nutrient-based subsidy
- Neem-coated urea
- Legal guarantee of MSP