Hyderabad: Ahead of the state budget, a critical assessment of Telangana’s agricultural future has flagged a stark imbalance in the distribution of Rythu Bharosa funds (known as Rythu Bandhu earlier) for farmers, raising questions about equity and long-term sustainability. The analysis reveals that 21% of the funds meant flowed to just 1.2% of the state’s wealthiest farmers, leaving the vast majority of marginal and small farmers with a disproportionately smaller share.The findings are part of ‘Telangana Agriculture Livelihoods: The Strategic Choice–Scenarios Across Three Horizons 2024, 2034 and 2047′, a study conducted by the Centre for Sustainable Agriculture (CSA).According to the analysis, this skewed allocation has translated into over Rs 18,000 crore being channelled exclusively to affluent farmers over the years. More than Rs 75,000 crore has been disbursed under direct investment schemes.Experts attribute this imbalance primarily to the absence of effective caps in the scheme. Financial assistance is linked to the extent of land owned, with an upper limit set at 50 acres, allowing large landholders to corner a substantial share of funds.“Eligibility should be determined by agricultural household income rather than acreage owned. Needy farmers with limited income end up receiving only a small share under this criteria,” said GV Ramanjaneyulu, director of CSA. He pointed out that nearly 83% of farmers in Telangana own less than 1.3 hectares, or below five acres.The study also draws comparisons with other states that rolled out similar schemes after Telangana pioneered direct investment support. Andhra Pradesh, Odisha, Madhya Pradesh and West Bengal adopted comparable models but restricted eligibility at the family-unit level, ensuring tighter control over fund distribution.5 acres per householdThe absence of caps in Telangana has had other costly consequences. Experts estimate that around Rs 22,000 crore was disbursed for land that remained uncultivated over the years.To correct the imbalance, experts recommend a pyramid-based allocation model, prioritising low income and marginal farmers owning up to one hectare. “If they are currently receiving Rs 6,000, increasing this to Rs 15,000 would provide them with much-needed additional income, as many do not even engage in allied activities,” Ramanjaneyulu said. Agriculture experts also suggested capping eligibility at five acres per household.The urgency of reform is underscored by long-term income projections. The study warns that average monthly incomes of non-wealthy farmers are likely to stagnate at around Rs 11,400 in real terms even by 2047, showing virtually no growth.While nominal incomes may rise from the current Rs 10,800 to Rs 52,000, inflation will erode gains, leaving real incomes close to Rs 11,000. The analysis cautions that this stagnation could push nearly 22% of agricultural families out of farming, threatening the sector’s viability.
