Odisha’s KALIA scheme to attack poverty

• Odisha Chief Minister Naveen Patnaik Friday announced a Rs 10,000-crore scheme for the overall development of farmers in the state.

• The state cabinet has approved the Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme, worth over Rs 10,000 crore, for the development of farmers in the state.

• The chief minister said. “The KALIA is historic and it will further accelerate agricultural prosperity in the state and reduce poverty.

Vital highlights

• Though the scheme did not have provision of farm loan waiver, the chief minister said: “all the small and marginal farmers of the state (over 30 lakh) will be covered under the scheme.

• An amount of Rs 10,000 per family at the rate of Rs 5,000 each for Kharif and Rabi seasons shall be provided as financial assistance for taking up cultivation.
• The farm loan waiver may help a section of the farmers, but this scheme will cover 92 per cent of cultivators of the state.

Highlights of the KALIA scheme

• The KALIA scheme also has a component for livelihood support for landless households. “Ten lakh landless households will be supported with a unit cost of Rs 12,500 to take up activities like goat rearing units, mini layer units, duckery units, fishery kits for fishermen and women, mushroom cultivation and bee keeping,” he said.

• Patnaik said the landless households will have the option of selecting any of the units.

• The scheme, among others, will particularly benefit scheduled caste and scheduled tribe households.

• The chief minister said annual financial assistance of Rs 10,000 per household will be provided to take care of sustenance of farmers not able to take up cultivation due to old age, disability, disease or other reasons.

• Deserving families will be identified and selected by gram panchayats, he said. Patnaik said about 10 lakh households will be covered over two years under this scheme at a cost of Rs 100 crore.

• The KALIA scheme also includes life insurance cover of Rs 2 lakh and additional personal accident cover of Rs 2 lakh will be provided to both cultivators and landless agriculture labourers covering about 74 lakh households.

• He also said the crop loan up to Rs 50,000 will henceforth be interest-free. “Under KALIA, an amount of Rs 10,180 crore will be spent over a period of three years till 2020-21.

• The scheme will be in reviewed in 2020-21 for further modification.

• Patnaik said KALIA is a progressive and inclusive scheme and will make a direct attack on poverty by way of massive investment in this sector and making benefits each the most needy through Direct Benefit Transfer (DBT) mode.


Mains Paper 3: Agriculture | Issues related to direct & indirect farm subsidies & minimum support prices

Prelims level: KALIA Scheme

Mains level: Various support schemes for farmers , labourers and their effectiveness

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