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Rythu Bandhu Scheme

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December 30, 2021

Why in news?

The total funds disbursed under Rythu Bandhu scheme is set to touch Rs 50,000 crore.

What is Rythu Bandhu scheme?

  • Under Rythu Bandhu Scheme, Telangana government credits Rs. 5000 per acre through direct benefit transfer into bank accounts of land-owning farmers at the beginning of Rabi and Kharif seasons.
  • As many as 66 lakh farmers (regardless of the extent of land owned by them) were identified as beneficiaries covering a total of 1.52 crore acres.
  • A farmer who owns 2 acres would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.

What is the government’s rationale behind the benefit transfer?

  • Farmers can take care of their initial investment needs and do not fall into a debt trap.
  • Investment enhances agriculture productivity and income to the farmers, besides breaking the vicious cycle of rural indebtedness.
  • The grant also helps them cover the expenses on input requirements such as seeds, fertilizers, pesticides, and labour.

How does it fare against the PM-KISAN scheme?

  • The Telangana government claims Rythu Bandhu scheme is better than Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
  • Under PM-KISAN, a land-holding family receives an income support of 6,000 per year, irrespective of their land holdings.
  • In effect, it only provides support to the family and not to the farm units
  • However, Rythu Bandhu transfers an anticipated input expenditure for each acre of land and there is no restriction on the number of acres owned by a farmer.
  • PM KISAN provides the support in three equal instalments.
  • However, in Rythu Bandhu, farmers get the cash assistance all at once ahead of the crop season.

What is the situation in case of landless farmers?

  • The Rythu Bandhu scheme comes under criticism that it ignores the plight of landless or tenant farmers.
  • Farmer bodies have been demanding to extend scheme to tenant farmers as well.
  • However the government has repeatedly expressed its difficulties to extend the benefit to landless farmers.
  • It is difficult to bring tenant farmers under the ambit of the scheme because of the informal nature of the agreements they enter into.
  • So, the tenant farmers either get the inputs like seeds, fertilizers and pesticides from the landowner on a share-crop agreement basis or bear the expenses on their own.



  1. https://indianexpress.com/article/explained/explained-rythu-bandhu-telangana-govt-dbt-scheme-farmers-7696651/
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