Centre eyes doubling cash handout for women farmers ahead of vote, say sources

The Union Government is considering doubling the annual payout to landowning female farmers to ₹12,000, three sources with knowledge of the matter said, a move likely to appeal to women voters ahead of a general election.

The Union Government is considering doubling the annual payout to landowning female farmers to ₹12,000, three sources with knowledge of the matter said, a move likely to appeal to women voters ahead of a general election.

The plan is likely to be announced in the budget on February 1 and could cost the government an additional ₹120 billion ($1.44 billion), said two of the sources, all of whom declined to be named discussing a budget proposal.

It will build on an existing programme that PM Narendra Modi, who will be seeking a third term in elections due by May, announced before the last national election in 2019.

“The expansion of the existing scheme may find more support from women, a key demographic,” Barclays Investment Bank economist Rahul Bajoria said.

Under the “Pradhan Mantri Kisan Samman Nidhi” programme, the government transfers ₹6,000 annually to both men and women farmers. It had disbursed more than ₹2.81 trillion to more than 110 million farmers in 15 installments up to last November, according to government estimates.

The plan to double the cash support and target it toward women has not been previously reported. It would be presented as a move to empower women in rural India, one of the sources said.

The Agriculture Ministry declined to comment and the Finance Ministry did not respond to an e-mail seeking comment.