Agriculture and related activities are vital to the lives and livelihoods of the majority of the households in the state. Aside from maintaining food security, the sector employs more than half of the state’s workforce. According to recent NSS data, the number of farm households increased from 51.5% to 54.2% between 2013 and 2019 [1]. Agriculture budget allocation increased dramatically from Rs.6,611 crores in 2016-17 to Rs.26,822 crores in 2021-22. Agriculture and related activities get 13.5 % of the state’s total revenue expenditure in 2021-22. It is far more than the typical state budget for agriculture (6.3%) [2]. Increased agricultural credit support can be attributed to schemes like Rythu Bandhu and Rythu Bima.
The contribution of the primary sector to the state economy has been steadily increasing over time (Figure 1). The agricultural sector contributed 103 % of Telangana’s Gross State Value Added (GSVA) at Current Prices from 2014 -15 to 2021-22. The GSVA of crops at current prices has increased significantly from 48,366 crores in 2018-19 to 77,338 crores in 2019-20 [3].
Data Source: Telangana State Statistic Report, 2021-22
Agriculture, forestry, livestock, and fisheries GSVA increased by 13.94 % from 2014-15 to 2021-22. The livestock industry has enhanced its contribution to the GSVA from 38.47 % to 49.73 % (2014-15 to 2021-22). The state government’s intensified efforts in this area, including new programmes like the Sheep Distribution Scheme, are partly responsible for the increase. The state’s cattle population grew by 22.09% from 2012 to 2019. Telangana is second only to West Bengal in livestock population growth over the same period among India’s central states (Figure 2).
Data source: 20th Livestock Census report, GoI
There is a huge access to capital is required for agriculture to grow. It is critical to offer a risk-free environment for farmers to access capital with the growing demand for agriculture and related products. The state government offers assistance in two ways to ease the burden on farmers. The first is through Rythu Bandhu, which gives financial assistance to all farmers, and the second is through increased bank financing. I aim to find the key insight from Telangana’s significant schemes Rythu Bandhu, Rythu Bima and Rythu Vedhika. Rythu Bandhu and Rythu Bima have received appreciation from the United Nations (Nov, 2018).
Rythu Bandhu
The Telangana government started the Rythu Bandhu Scheme in 2018 to address the cost of inputs in agricultural practices. The scheme provides the farmers with the financial assistance of Rs 10,000 per acre per year. It is higher than that provided by other states like Andhra Pradesh (Rs 7,500 per farmer family per year), Jharkhand (Rs 5,000 per marginal and small farmer per acre per year), and West Bengal (Rs 5,000 per marginal and small farmer per acre per year). Unlike the states as mentioned above, the Telangana government has extended the scheme to all landowners, regardless of farm size. Each farmer receives Rs 5,000 per acre per season (Rabi & Kharif) irrespective of their landholding. Therefore, a farmer with two acres of land would receive Rs 20,000 per year from the government, while a farmer with ten acres would receive Rs 1 lakh per year. The grant will assist them in covering the costs of inputs like seeds, fertilizers, insecticides, and labour. As a result, farmers can meet the timely capital requirements during farming practices. It leads to a better production yield and income increase.
According to the Indian Council for Research on International Economic Relations (ICRIER), direct investment support begun by the state of Telangana is superior to other options since it is easier to implement, transparent, and inclusive [4]. The amount of Rs 50,448 crores has been distributed to the recipients throughout eight seasons (monsoon 2018 to summer 2021-22).
Rythu Bima
Farmers Group Life Insurance Scheme (Rythu Bima) was conceptualized and launched by the Telangana government in 2018 to provide economic and social security to farmers. The scheme’s principal goal is to give financial assistance and social security to family members and dependents in the event of the death of a farmer for whatever reason. The insured amount of Rs 5.00 lakhs is deposited into the specified nominee account within ten days of the registered farmer’s death for any reason, including natural death. The state government pays the entire premium regardless of the size of the farm. The government paid Rs.3,763.80 crores to 75,276 bereaved families in 2018 -19. Around 32.7 lakh farmers have been registered in Rythu Bima in the year 2020 -21, with Rs.1,435 crore being distributed.
Rythu Vedika
The Telangana state government introduced the Rythu Vedika scheme on October 31, 2020. It is a project aimed at bringing farmers together on a single platform and assisting them in achieving higher returns on their farm produce. The state has resolved to establish one Rythu Vedika for every 5,000 farmers with the sole purpose of advising them on profitable farming techniques. The state government intends to build 2,601 Rythu Vedikas across the state. Around 1,580 Rythu Vedika have been completed by October 30, 2022. The state has set a budget of Rs 572.22 crore for the current project.
Final thoughts
Capital inadequacy is the major roadblock to adopting technological advancements and infrastructure developments [5]. Rythu Bandhu has kept the farmers’ morals high and helped them choose the right technology without worrying about investments. This, in turn, has maximized the productivity of the farmers. It also helped farmers to get new land into cultivation. There has been a subsequent rise in agricultural activities and agricultural areas in the state [6]. The gross sown area has increased from 131 lakh acres to 210 lakh acres from 2014-15 to 2020-21 [7]. Rythu Bandhu’s non-refundable money has helped farmers increase their profits on each harvest.
It is crucial to take care of the family after the farmer’s (head of household) demise. Rythu Bima scheme is effectively serving this purpose. Apart from these, the delivery of schemes and spreading awareness about the schemes through specified bodies like ‘Rythu Vedika” has played a significant role in increasing agricultural welbeing in the state.
References
[1] NSS 77th round, 2019.
[2] Telangana Budget Analysis 2021-22 by PRS Legislative Research.
[3] Telangana State Statistic Report, 2021-22
[4] Gulati, A., Chatterjee, T. and Hussain, S., 2018. Supporting Indian farmers: Price support or direct income/investment support?.
[5] https://rbidocs.rbi.org.in/rdocs/Content/PDFs/cap_ad.pdf
[6] https://telanganatoday.com/crop-area-increases-in-telangana
[7] Telangana socio economic outlook 2022
(Views expressed in the blog are personal and not of any organization/institution)
By Mrs. Sathya Kandasamy
(Write to her at sathyaagri93@gmail.com for this blog related views and suggestion)