Rythu Bandhu Scheme-A Welfare Program to Support Farm Investment in Telangana State of India
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Case Code: ECON075 Case Length: 12 Pages Period: 2018-2019 Pub Date: 2019 Teaching Note: Available |
Price: Rs.300 Organization : Rythu Bandhu Scheme Industry : Agriculture & Forestry Countries : India Themes: Public Policy, Government & Economy, Political Environment, Rural Markets |
Abstract Case Intro 1 Excerpts
Excerpts
The Rythu Bandhu Scheme
The RBS was launched by the TSG on May 10, 2018, in Dharmarajpalli Village, Karimnagar district, Telangana state. The TSG had undertaken an exercise prior to the launch of the RBS to verify, update, and rectify land records to ensure that only genuine beneficiaries availed of the scheme. Every individual farmer was contacted, and their land details verified; objections if any were rectified; and the rectified document was uploaded on the land bank website. During the 100 days from September 15, 2017, to December 31, 2017, 94% ownership of the lands was verified and land records were updated and digitized....
In Support of RBS
Telangana State is located on the Deccan plateau , an area with a semi dry weather, which is completely dependent on the monsoon for cultivation. If the monsoon failed, it led to suicides by the farmers who had borrowed heavily from private money lenders to purchase inputs for cultivation. Most of the small and marginal farmers were happy with the RBS as they were able to purchase seeds, fertilizers, and pesticides for their cultivation. P. Madan (Madan), a farmer from Kamareddy District, Telangana, said that before the farming season began, he had purchased agricultural inputs for his land from private money lenders at a high rate of interest. Frequent small loans often added up and increased the outstanding debt...
Against RBS
Farmer unions and organizations such as the Telangana Rashtra Rythu Sangam , Rythu Swarajya Vedika , Telangana Rythu JAC , and Telangana Rythu Sangam were of the view that the RBS benefitted absentee landlords, while the real cultivators of the land – the tenant farmers – were not getting any of the benefit. In Telangana, there were 14 lakh tenant farmers in 2018 who took the land on lease and cultivated them. These tenant farmers were the ones who invested their money for cultivation and were incurring the input costs and risks of agricultural production. Farmer organizations claimed that after the formation of Telangana state in 2014, there had been 3,500 farmer suicides reported in the state and tenant farmers comprised 60% of them....
How Sustainable is RBS?
As for the RBS, the Telangana Government intended to continue with the scheme and provide support to the farmers to help ease their financial burden. The success of the RBS led to many other state governments like Odisha, Madhya Pradesh, and Jharkhand coming up with similar farmer support schemes with minor variations to help farmers withstand agrarian distress. (Refer to Exhibit III for different schemes by the central government and the state governments)...
Exhibits
Exhibit I: Objectives of Rythu Bandhu Scheme
Exhibit II: Features of Rythu Bandhu Scheme
Exhibit III: Different Farmer Support Schemes by the Central and the State Governments
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