Transfer `12,000/yr to farmers: SBI
New Delhi, Jan. 22: The government should opt for the unconditional cash transfer to farmers to alleviate agrarian distress rather than Universal Basic Income (UBI) scheme, the SBI said in a report on Tuesday.
At present, it may not be feasible to initiate Rythu Bandhu Scheme on national level as land data in several states, including Jharkhand, Bihar, Gujarat, and Tamil Nadu are yet to be digitised, the SBI said in its ‘Ecowrap’ report. “Hence, it is best to initiate unconditional cash transfer scheme as it will be more equitable (on a per farmer basis) with a
AT PRESENT, it may not be feasible to initiate Rythu Bandhu Scheme on national level as land data in several states, including Jharkhand, Bihar, Gujarat, and Tamil Nadu are yet to be digitised, the SBI said in its ‘Ecowrap’ report.
meaningful impact and once the problems are ironed out in terms of proper tenancy laws, then make it conditional,” it said.
The study said that there have been reports saying that government is planning to provide direct cash support to the farmers in lieu of various farm level subsidies/support. “In Budget, the government had estimated agriculture subsidy (plus support) at `98,100 crore (crop insurance: `13,000 crore, interest subsidy: `15,000 crore and fertiliser subsidy: `70,100 crore),” it said.
Against this background, it estimated an approximate amount that farmers are getting presently and how much would they benefit on a net basis from such cash transfer scheme.
“Our calculation suggests that if a farmer is availing one or all the three modes of subsidy/supports from the government, then he/she will receive minimum of `5,335 to maximum `10,162 per annum as cash support,” it said.
Hence the government will need to provide cash support in the range of `10,000-12,000 per annum to make it completely cash neutral, the report noted.
Tenant farmers, who constitute a significant proportion of total farmers in India, will possibly be excluded under the proposed scheme, the report noted.
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