Government Schemes and Crop Insurance Policies Contribute to Re-Shaping of Agriculture Sector

According to state government data, the Rythu Bandhu initiative, which was launched in 2018, has so far distributed Rs 50,000 crore to 6.3 million farmers. In 2019, the central government followed in the footsteps of the Rythu Bandhu and introduced the Pradhan Mantri Kisan Samman Nidhi (PM Kisan).

The state government has been depositing Rs 5,000 per acre per season into the bank accounts of land-owning farmers ahead of the Rabi and Kharif seasons under the Rythu Bandhu plan.

In current price gross value added (GVA), the state's agricultural and allied sectors grew at a rate of 12.24 percent in 2020-21 and 9.09 percent in 2021-22, respectively. Throughout the pandemic, the state's agriculture and related industries remained strong.

According to the state government, "this has been achieved through a variety of factors including new irrigation schemes like the Kaleshwaram Lift Irrigation Project and Mission Kakatiya, as well as innovative agricultural support policies like the Rythu Bandhu and Rythu Bima schemes, and 24x7 free power supply to the agriculture and allied sector."

Rythu Bima was established in 2018 with the goal of giving financial assistance and social security to dependents in the event of the death of a farmer.m The state government pays the entire payment, and all farmers, regardless of their landholding size, are eligible for the insurance program.

The assured amount of Rs 500,000 is transferred to the nominee's bank account within 10 days if the enrolled farmer dies due to any reason. According to TSEC, the state government has satisfied claims worth Rs 3,763 crore since 2018-19 and distributed the funds to 75,276 bereaved families.

"Policies like the Rythu Bandhu program have had spillover impacts on the secondary and tertiary industries," according to TSEC.