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INCOME SUPPORT SCHEMES FOR FARMERS

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INCOME SUPPORT SCHEMES FOR FARMERS

Indian farmers are agitating against the lower income, failure of crop insurance schemes and the falling prices below the Minimum Support Price (MSP). Best Civil Services Coaching In Dehradun. To tackle these issues, the governments have taken measures like 1.5 times MSP, loan waivers, Price deficiency payment etc. Best IAS Institute in Dehradun.


Now, taking a shift in policy, state governments have come with income support scheme-


1. Rythu Bandhu (Telangana)

a. The land-owning farmers will be provided Rs.4000/acre for two seasons per year. It is estimated that more than 90% farmers of the state will be benefitted. Best IAS Institute in Dehradun.

b. However, the tenants and landless farmers will be excluded.

2. KALIA (Odisha)

a. It will not only include land-owning farmers (uptob5acre) but the tenants and agri-labourers also. Best Civil Services Coaching In Dehradun.

b. Different segments will get different income support.


Why shift in policy?

1. According to Shankta Kumar committee and Prof. Gulati, MSP has covered merely 20% farmers.

2. Due to the lack of storage capacity and overflowing stocks, the government cannot procure more agri-items. Best Civil Services Coaching In Dehradun.

3. MSP is also distorting cropping patterns and it has resulted in inflation in pulses and other agri-products. Best IAS Institute in Dehradun.

4. Loan waiver has covered farmers having institutional credit only. It has excluded small and marginal farmers.

5. According to RBI, loan waivers scheme is responsible for credit indiscipline, increased states ' fiscal deficit, crowding out effect and loss in interest payments.



Benefits of this policy shift

1. Easier to implement, transparent and less market distortion.

2. Wider coverage of farmers. Best Civil Services Coaching In Dehradun.

3. Marginal farmers, tenants and landless labourers will be benefitted.

4. It will help in crop diversification and mixed farming. Best IAS Institute in Dehradun.

5. It will maintain credit discipline and will help in formalization of farmers.


Issues with income support schemes

1. It will heavily cost on governments & exchequer.

2. Due to the fragmented land records and lack of digitization, it will be a challenge to identify the true beneficiaries. Best Civil Services Coaching In Dehradun.

Comparatively, this policy shift may be beneficial. However, for a stabilize income for farmers, the infrastructural support is primary. Therefore, the government must focus on improving irrigation facilities, improving supply chain, farm mechanization, mixed farming, formalization of farmers and effective implementation of crop insurance schemes. Best IAS Institute in Dehradun.

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