Finance Dept turns down Farmers Welfare Fund Board pension proposal

MALAPPURAM: Even after four years of the Farmers Welfare Fund Board's establishment, the Finance Department has not approved any schemes, including pension. The dispute over the source of income to provide benefits is cited as the roadblock.

The Finance Department is apprehensive that this will impose a huge financial burden on the government. However, the board argues that it can implement the pension scheme by securing a corpus fund through the board's revenue sources.

Meanwhile, the delay in approval is also being blamed on the 13 other boards that have objected to the Finance Department's approval of the Farmers' Welfare Fund Board's projects. More benefits may lead to an influx of members from other boards to this one. There are also allegations of political parties controlling various boards, hindering the move.

The board came into existence on October 15, 2020. Although it aimed to include about 2 million small farmers as members, only 11,879 have joined so far. The minimum contribution is Rs. 100 per month. The government contribution is up to Rs. 250. Those who have paid contributions for at least five years will receive a pension of up to Rs. 5,000 upon reaching the age of 60.

Membership distribution started in December 2021. Therefore, the pension will have to be paid from January 2026. There are about 15 benefits, such as ill health, disability benefits, treatment, marriage financial assistance, and maternity benefits.

Income sources for the board:

• The board will receive one per cent of the fine when land is converted for non-agricultural purposes

• Centrally sponsored schemes and funds from NABARD can be utilised.

• The board is also allowed to accept donations from private institutions.

• One per cent of the profit from the sale of value-added products from agricultural products

• Contribution amount from members and the government