New Delhi: The Narendra Modi government is closely examining the Odisha Government’s Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme as an alternative to farm loan waiver to provide the much needed oxygen to the ailing agriculture sector and provide relief to the farmers ahead of the Parliamentary elections.
Speculations are ripe that the KALIA scheme, which was rolled out in December last year by the Naveen Patnaik Government, is being actively considered by the PMO in consultation with the Agriculture Ministry and NITI Aayog. Media reports have also suggested that the new relief package could be an ensemble of models of individual states. The Centre for Monitoring Indian Economy, quoting industry experts, has reported that should the Modi government emulate the KALIA scheme for a nation-wide launch, the budgetary implication could be about Rs 1.4 trillion.
The new programme is expected to be announced during the presentation of the mini budget in February. Elections are due in May and a full-fledged budget would be presented by the newly elected government after that. Election commission is likely to announce the poll dates in March.
The Odisha government, which is bracing up for both the Lok Sabha polls as well as the State Assembly elections, launched the ambitious KALIA programme on December 21. Under the scheme, more than 30 lakhs small and marginal farmers (about 90 per cent) will be provided Rs 10000 for Kharif and Rabi crops. The financial assistance will be given to them for five crop seasons in three years from 2018-19 to 2021-22. A life insurance cover of Rs 2 lakh is also an integral component of the scheme.
West Bengal Chief Minister Mamata Banerjee’s two new schemes for farmers and farm labourers also appeared to be an inspired version of the Kalia scheme. As per the announcement made by her on December 31, 2018, every farmer in the state will get Rs 5,000 per acre every year in two installments from the agriculture department. The Krisak Bandhu scheme will grant Rs 2 lakh to the kin of farmers who die due to any reason, including suicide.
Talks surrounding loan waivers and its implication for the economy gained traction especially after the newly former Congress governments in Madhya Pradesh and Rajasthan announced waiver of farm loans. While experts have panned the move, Prime Minister Narendra Modi also took on the Congress on the issue, accusing the party of duping the farmers in the name of loan waiver. In recent political rallies, Modi has reasoned that loan waiver is not the answer to eliminate farmers sufferings. Incidentally, loan waiver was a poll plank of BJP too during the last Lok Sabha elections.
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