Hyderabad, June 26: The Telangana government is likely to make a special provision of Rs 31,000 crores for farm loan waivers in its final budget. Sources in the agriculture department indicate that this will be part of the budgetary allocation for the agriculture sector, which is being pegged at around Rs 64,000 crores. Last year, the sector received Rs 29,164 crores.
Previously, the State government presented only an interim budget as the central government could only present a vote on account budget due to parliamentary elections. This year, the next major head to receive a higher allocation is Rythu Bharosa, with Rs 23,000 crores, a significant increase from the Rs 11,704 crores allocated last year. This increase will facilitate the implementation of the Congress party’s promise to raise investment support from Rs 10,000 per acre to Rs 15,000 during the elections.
The State government had promised to make suitable changes and reduce payments to lands converted into real estate and barren lands. They are also considering whether to retain income tax payees in the scheme. Deliberations are ongoing about the extent of land to which the investment support will be extended. On Tuesday, State Agriculture Minister Tummala Nageshwara Rao held a video conference with farmers who attended from Rythu Vedikas in rural assembly constituencies to directly gather their opinions on the issue.
The Fasal Bheema scheme, meant to provide support to farmers affected by natural calamities, is likely to receive around Rs 3,000 crores. The BRS government had exited the centrally sponsored PM Fasal Bima Yojana scheme in 2020, citing insufficient benefits for Telangana farmers despite the government paying 50% of the premium. Other states like Andhra Pradesh, Gujarat, Tamil Nadu, and West Bengal, which also exited the scheme, launched their own alternatives, but Telangana had not, leaving calamity-hit farmers without adequate support. A promise by CM KCR to pay Rs 10,000 per acre to farmers affected by hailstorms was not fully realized.
The Rythu Bheema scheme is likely to be allocated Rs 1,500 crores and will be implemented as it was previously. Farmer associations have long requested changes to include family members of farmers in the scheme. Currently, the scheme identifies beneficiaries based on land ownership data available in Dharani, excluding family members who manage family agriculture but do not have land in their name and landless tenant farmers.
Agriculture is set to receive a record budget. Proposals for Rs 500 crores for farm mechanization, Rs 1,000 crores for oil farms, and Rs 64,000 crores for agriculture and allied sectors have been submitted to the government. It appears that agriculture will receive the largest allocation in the state budget, particularly in the context of a one-time loan waiver.
