Telangana Govt to Allocate Rs 64,000 Crore for Agriculture in Budget

Hyderabad: The Telangana government is likely to make a special provision of Rs 31,000 crores for farm loan waiver in its final budget for the financial year 2024-25. This, sources in the agriculture department say, will form a part of the budgetary allocation for the agriculture sector which is being pegged at around Rs 64,000 crores.

The inclusion of farm loan waiver amounts in the agriculture department budget is likely to increase the budget to record levels.

The sector had received Rs 29,164 crores in the previous year’s Budget. It may be recalled that the state government had presented only an interim Budget earlier as the Centre could only present a vote-on-account in the backdrop of the Lok Sabha elections.

The next major head to receive a higher allocation is Rythu Bharosa at Rs 23,000 crores. This is also a major increase from the Rs 11,704 crores that was allocated in the previous year. The increase will facilitate the implementation of the Congress’ promise to increase the investment support from Rs 10,000 per acre to Rs 15,000 during the polls. The state government which had promised to make suitable changes and prune payments to lands that have turned into real estate, barren lands is also mulling whether to retain income-tax payees.

Officials further indicated that deliberations are underway on the extent of land to which the investment support has to be extended. State agriculture minister Tummala Nageshwara Rao held a video conference on Tuesday with farmers who attended the meeting from Rythu Vedika’s located in the rural assembly constituencies to elicit their opinion directly on the issue.

The Fasal Bima scheme meant to provide succor to farmers hit by natural calamities is likely to receive around Rs 3,000 crores. It may be recalled that the BRS government had walked out of the centrally-sponsored PM Fasal Bima Yojana scheme in 2020 citing that the farmers in the state are not benefitting even to the extent of the 50 per cent premium being paid by the Telangana government.

The states, that had backed out of the scheme like neighbouring Andhra Pradesh, Gujarat, Tamil Nadu, and West Bengal, have launched their own schemes but Telangana hasn’t done so. This had left the calamity hit farmers to fend for themselves. Though the then chief minister K. Chandrashekhar Rao had promised to pay Rs 10,000 per acre to farmers hit by hail storms in one go, it had failed to materialise fully.

The Rythu Bhima scheme, which is likely to be allocated Rs 1,500 crores, is sought to be implemented as it existed earlier. Farmers associations that welcome and laud the scheme have long sought changes in the scheme to include family members of the farmers.

Changes were sought in the scheme as it takes ownership of land and data available in Dharani to identify beneficiaries. This left the family members who take the onus of family agriculture on themselves but don’t have land in their name and the landless tenant farmers outside the purview of the scheme.

Farm mechanisation and promotion of oil palm are likely to get Rs 500 crores and Rs 1,000 crores respectively. The proposals have been forwarded to the state government for ratification.