Cash Transfer to Farmers

Context: There is a need to evaluate direct cash transfer and income support schemes and refine/merge them so that they serve their purpose in an efficient and inclusive manner without much leakage.

State Initiated Income Support Schemes: Chhattisgarh’s  Rajiv Gandhi Kisan Nyay Yojana (RGKNY),  Telangana’s cash transfer scheme, Odisha (KALIA scheme ), West Bengal’s Krishak Bandhu and Jharkhand’s Mukhya Mantri Krishi Aashirwad Yojana.

Issues ineffective implementation of income support schemes

• Absence of credible tenancy record and inefficient tenancy law.
• large leakages and corruption: leaving the task of identification of landless temporary and seasonal workers/labourers working on farms to panchayats and patwaris.

Way Forward

• Reform tenancy laws and open up land lease markets: Owner of the land has full rights to take his land back after the expiry of the lease period. 
• Awareness: inform tiller about the income support scheme enjoyed by the owner and appeal owner to pass on this benefit to the tiller — or adjust the land rent accordingly.
•  Information and persuasion campaigns: by radio and newspapers would increase the chances of the benefits being passed on to the real tillers (or at least help the tenants to bargain on the terms of tenancy).
• Scheme merger: Merging income support schemes (PM KISAN and MGNREGA) and price-subsidy scheme (food and fertiliser subsidies and power subsidies).
• Synchronising MGNREGA with farm operations: To reduce the cost of farming while ensuring useful and productive work.
• Expert group: for monitoring the functioning of income support schemes.
• Umbrella scheme: to take care of the poor and the needy.