For Odisha farmers bearing MSP loss on paddy, KALIA and PM–KISAN, if implemented thoroughly, would make up for more than the loss they incurred on MSP as farmer households in Odisha could see an accretion of over 17 per cent per month in their monthly income. MSP was declared on an all-India basis but Odisha farmers had to bear the loss owing to lesser yield rate.
Sample this. As per Nabard’s All India Rural Financial Inclusion Survey 2016-17, average monthly income of farmer households in Odisha in 2017 was Rs 7,731. With KALIA and PM-KISAN via DBT accounting Rs 16,000 per-year-per-farmer family or around Rs 1,333/month, the impending fact is it would give an immediate boost to the average monthly income of farmers that then touches around Rs 9,061/month, which would then become higher than the prevailing national average monthly income of farmers worth Rs 8,391/month.
The Nabard report has put Odisha farmer’s monthly income in the bottom-10 among 29 States and UTs. Odisha farmer’s monthly income is better than only five States like Andhra Pradesh, Bihar, Jharkhand, Tripura and UP.
How it together gives a better return? As per OUAT estimates, the cumulative cost of production of production (C2) of paddy per hectare in Odisha currently stands at around Rs 2,500/hectare. The current MSP is Rs 1,750/quintal; whereas Congress president Rahul Gandhi in a dramatic way declared a MSP of Rs 2,600/quintal for farmers in Odisha.
The current MSP saw incurring of a loss of around Rs 700/quintal. If Rs 700/quintal bonus is given to a farmer and assuming of him being selling around 20 quintals of paddy from a hectare of land, then the farmer would earn around Rs 14,000 more over the current MSP rate per year or around Rs 1,200/month. In contrast, the two direct income support schemes enrich a farmer’s hand with a whopping Rs 1,333/month.
As per Nabard experts, this MSP loss to Odisha farmers resulted in a rise in outstanding loans of farmers as the MSP loss has forced them to default on their debts, which at times was compounded by natural disasters. The two direct income support schemes, if implemented in letter and spirit, over the years would not only increase State farmers’ per capita income but could also solve the indebtedness crisis of farmers in Odisha.
Simultaneously, it will give a fillip to the State’s rural economy provided the expenditure in farm sector could rise to a level of over 10 per cent of the total budgeted expenditure of the State Government over the years to come.
Data shows the expenditure in agriculture in Odisha for the period 2015-19 has declined to 7.4 per cent of total expenditure vis-a-vis of around 9 per cent of total budgeted expenditure in 2011-15.
“Odisha has to put more funds for agriculture marketing and irrigation in coming years. As KALIA was improved over Telengana’s Rayuthu Bandhu Scheme, the State has to peg its average expenditure on irrigation vis-a-vis total budgeted expenditure from around 8 per cent in 2011-19 to match Telengana’s around 13.8 per cent spending on irrigation for period 2011-19,” quipped a senior Nabard official here.