Direct Benefits Transfers

Rythu Bandhu Scheme suspended ahead of Elections


From UPSC perspective, the following things are important :

Prelims level: Rythu Bandhu Scheme

Mains level: Not Much

Central Idea

Rythu Bandhu Scheme: Key Facts

  • The Rythu Bandhu scheme is also known as Farmer’s Investment Support Scheme (FISS).
  • It is a welfare programme for farmers started in 2018 by the Telangana government.
  • Under the scheme, the state government provided the 58 lakh farmers in Telangana with ₹5,000 per acre of their land as a farm investment for two crops.
  • There is no ceiling on the number of acres held by a farmer.
  • So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
  • This investment is made twice a year, once for kharif harvest and once for Rabi harvest.
  • It is the country’s first direct farmer investment support scheme where cash is paid directly to the beneficiary.

Reasons for suspension

  • The election commission had allowed the disbursement of funds for the rabi harvest this season, provided they are not publicised, in accordance with the model code of conduct.
  • However, the model code was violated after the state finance minister made a public announcement of the same.

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