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Krushak Assistance for Livelihood and Income Augmentation or KALIA Scheme

Topics Covered:

  1. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.
  2. Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.

 

Krushak Assistance for Livelihood and Income Augmentation or KALIA Scheme

 

What to study?

  • For Prelims: Key features and significance of the scheme.
  • For Mains: Why such schemes are good compared to loan waivers?

 

Context: KALIA scheme, launched by Odisha state government, has completed its first phase of registration.

 

Key features of Krushak Assistance for Livelihood and Income Augmentation or KALIA Scheme:

  • Involves payments to encourage cultivation and associated activities.
  • Primary targets are small farmers, cultivators and landless agricultural labourers.
  • All farmers will be provided Rs 10,000 per family as assistance for cultivation.
  • Each family will get Rs 5,000 separately in the kharif and rabi seasons, for five cropping seasons between 2018-19 and 2021-22.
  • Targets 10 lakh landless households, and specifically SC and ST families. They will be supported with a unit cost of Rs 12,500 for activities like goat rearing, mushroom cultivation, beekeeping, poultry farming and fishery.
  • A critical trade, dairy production, has deliberately been kept out because keeping a cow is more expensive, while milk production needs to have a collection route or agency that processes and refines this low shelf-life product.
  • It will assist the elderly, sick and differently-abled population who are unable to take up cultivation, by providing Rs 10,000 per household per year.
  • The scheme includes a life insurance cover of Rs 2 lakh and additional personal accident coverage of the same amount for 57 lakh households. Crop loans up to Rs 50,000 are interest-free.
  • This is also going to be an area-specific scheme in the sense that an input support for a particular trade, say mushroom cultivation, will be provided if it is prevalent throughout that locality so that there is aggregation of produce.

 

How different will KALIA be from a loan waiver?

Unlike a loan waiver, (through which) banks appease a few farmers, KALIA’s main targets are rural activities as a whole. It will support farming on a small scale, sharecropping, fishing, animal herding, which are not covered under bank loans, but are caught in debt traps set up by local moneylenders. Also, a farm loan waiver will reduce credit available to farmers in the long term, while income support can be used to make a repayment or at least activate a bank account which can then receive a loan.”

 

Sources: Indian Express.

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