EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 2425 CUTTACK, MONDAY, DECEMBER 24, 2018/PAUSA 3, 1940

DEPARTMENT OF AGRICULTURE & FARMERS’ EMPOWERMENT

NOTIFICATION

The 22nd December, 2018

Sub: Package for Farmers’ Welfare – Krushak Assistance for Livelihood and Income

Augmentation (KALIA).

No. 23130–AP-I-247/2018/A&FE.— The State Cabinet in their 65th meeting held

on 21st December, 2018 have approved the proposal for Package for Farmers’ Welfare –

Krushak Assistance for Livelihood and Income Augmentation (KALIA)to further accelerate

agricultural prosperity and reduce poverty in the State. This scheme is progressive and

inclusive. It covers 92% of the cultivators, loanee as well as non-loanee farmers, share

croppers (actual cultivators) and landless agriculture labourers. It also specifically takes

care of vulnerable agricultural families identified through Gram Panchayats, and makes

crop loans available at 0% interest.

Introduction

Agriculture remains a prime mover of the socio- economic well-

being of a majority of the population in the State with more than 60%

work force depending on it for their livelihood.

Odisha has achieved sharpest decline of 24.61 % in poverty levels

among major States in the Country between 2004-05 and 2011-12.

Nearly 8 million households have been brought above the poverty line

during this period. Further reduction in poverty would require

concerted efforts to bring vulnerable households engaged in the

primary sector out of poverty. This would entail direct attack on

poverty by way of massive investment in this sector and making

benefits reach the most needy through Direct Benefit Transfer( DBT)

mode.

Background

From being a State doing subsistence agriculture Odisha has

made rapid strides in becoming a progressive State in agriculture. The

production and productivity of rice has more than doubled since 2001-

02. Similar achievements have been noticed in case of other crops,

vegetables and fruits. The annual milk and egg production in the State

has increased more than 2.8 times and 3.2 times respectively between

2001-02 and 2017-2018. Similarly, the meat production has increased

about 5 times and fish production has increased more than 2.5 times

during this period. Total annual shrimp and sea food export from

Odisha has also increased more than 4.2 times over this period. It is

the only State in the country which has doubled the farmers’ income in

real terms over a decade. The productivity gains in agriculture in our

state has been recognised at the national level with conferment of 5

Krishi Karman Awards in 7 years.

The Government has consistently been proactive for the cause

of the farmers and development of agriculture in the State. In fact,

Odisha is one of the first States to have an exclusive budget for

agriculture and farmers’ empowerment since 2013-14. The outlay for

this sector has increased over 2.5 times since then. We have also

constituted an Agriculture Cabinet to deliberate and decide on critical

issues concerning the agriculture sector. The new Agriculture Policy

formulated in 2013 provides for attractive incentives for agriculture

and allied sector activities.

The State Government is providing loans at 1% interest for

farmers. More than 1 lakh Joint Liability Groups comprising mainly

share-croppers have been provided institutional credit. Odisha had

targeted to cover 10 lakh hectares of additional agriculture land under

irrigation over a period of 5 years. Odishais well on way to achieve this

target by March 2019. Among the recent initiatives, Odisha Millets

Mission has been launched to cover rainfed areas in 14 tribal

dominated districts; and the Organic Farming Policy has been

formulated for undertaking certified organic cultivation in over 2 lakh

hectares.

Farmers Data:

As per the census 2011, there are 32.80 lakh cultivators & 24.20

lakh agricultural labourers who are dependent on agriculture as their

main occupation, having worked for the major part of the reference

period i.e. 6 months or more in the agriculture/ allied sectors. Out of

the total cultivators about 30.1 lakh (92%) are small and marginal

farmers.

Direct Benefits

Transfer

The experience of direct transfer of subsidies to the accounts

of beneficiaries was analysed. It was seen that this would make funds

immediately available to the farmers. It ensures that the targeted

beneficiaries get the funds, and the farmers have the freedom to

utilize the cash in the most appropriate manner as they decide to do. A

larger number of families can be assisted in the process since it is no

longer restricted to only those who have taken loans. This will be more

progressive since landless farmers, and farmers having no access to

banks (eg- share croppers) can also be covered. It is in this context

that the following scheme namely, KALIA, is formulated with various

components.

Key features of the Scheme – KALIA – Krushak Assistance for Livelihood and Income

Augmentation

1. Support to

cultivators for

cultivation

In order to ensure that the farmers don’t fall again into the debt

trap, this component of the Scheme will be implemented from the

year, 2018-19 Rabi onwards to take care of the initial investment needs

of every small & marginal farmer. Under this component, support will

be provided for cultivation to the small & marginal farmers by way of a

grant of Rs. 5000/- per farm family per season for purchase of inputs

like seeds, fertilizers, pesticides, towards labour & other investments

in the field operations based on the farmers’ choice for the crop

season. Thus in a year, all the small and marginal farmers will receive

Rs. 10,000/- for Kharif & Rabi, combined. This component is not linked

to the extent of land owned and thus is more progressive in favour of

all the small & marginal farmers. Out of the 32.46 lakh cultivators

dependent on agriculture, 92% (i.e. 30.176 lakh) are small & marginal

farmers. It is important to note that this assistance for five cropping

seasons spanning 2018-19 to 2020-21 so as to ensure comprehensive

coverage. About Rs. 3016 crores will be required annually for this

component of the Scheme.

Livelihood

support for

landless

agricultural

households

Livestock & fishery based activities are the key drivers of

economic growth in rural areas particularly for landless households as

the income from wage labour alone is insufficient. Agriculture allied

sector assumes immense significance in promoting goat, sheep, poultry

farming, mushroom cultivation, bee keeping and fishery activities as

additional activities in rural area, which contribute substantially in

enhancing their income and overall wellbeing. Hence, it is proposed to

assist 10 lakh landless households under agriculture allied activities

over 3 years from 2018-19 to 2020-21. In addition to others, this will

particularly benefit the Scheduled Castes and Scheduled Tribe

population of our State. The activities are; i) Small goat rearing units,

ii)Mini layer units, iii) Dual purpose Low Input Technology bird units, iv)

Duckery units, v) Fishery kits for fishermen, vi) Mushroom cultivation

and Bee keeping. Sheds as required will be constructed in convergence

with other schemes and poultry cage for mini layer units will be

constructed. It is targeted to cover 7 lakh households with animal

resource sector activities, 1 lakh households with fishery sector

activities and 2 lakh households with horticulture sector activities.

The landless households will have the option of selecting any

one of the livelihood units as per their choice. The unit cost for each of

these activities is Rs. 12,500 for each household. The total cost of this

component for 10 lakh households over the entire period of the

disbursement of 3 years will be Rs.1250 crores.

3. Financial

Assistance to

vulnerable

agricultural

households

While support for cultivation has been proposed for small &

marginal farmers and livelihood support for land less agricultural

labourers, some of the farmers may not be able to take up cultivation

and some of the landless agriculture labourers may not be able to

avail livelihood options due to old age, disability, disease or any other

reason. It is, therefore, proposed that for such vulnerable cultivators /

land less agricultural labourers a lumpsum financial assistance of

Rs.10,000/- per family be provided to take care of their sustenance.

Deserving families will be identified and selected by Gram Panchayats.

It is estimated to cover 10 lakh such beneficiaries in the next two

years. However, no individual would receive more than any one of the

benefits i.e. either cultivation support or livelihood support or financial

assistance to vulnerable households. Thus, the annual requirement for

this component will be about Rs.500 crores.

4. Life insurance

support to

cultivators &

landless

agriculture

labourers

The life of the farmer has the risk of death and disability.

Insurance support will reduce these uncertainties and provide financial

support for their families. The main objective is to provide financial

relief and security to the family members & dependents of the

deceased in case of those uncertainties.

Life Insurance Corporation (LIC) offerspure Life Insurance cover

of Rs.2,00,000/- at a very nominal annual premium of Rs. 330/- for all

savings bank account holders aged between 18 and 50 years.

Government of Odisha will bear the farmer’s share of annual premium

of Rs.165/-.

Similarly, LIC is also offering personal accident cover of Rs.

2,00,000/- at a very nominal annual premium of Rs. 12/- for all savings

bank account holders aged between 18 and 50 years. Out of Rs. 12/-

towards premium Rs. 6/- is the farmer’s share, which will be borne by

the Government of Odisha. From age 51-70 years the entire amount of

Rs. 12/- towards premium will be borne by the Government of Odisha.

This component will cover both cultivators & landless

agricultural labourers, who are primarily dependent on agriculture as

the main activity, which comes to 57 lakh individuals. Those farmers

already insured under similar schemes will be excluded. The total

annual cost towards this component will be about Rs. 85 crores.

5. Interest free

Crop loan

It is proposed to reduce the interest rate on crop loans upto

Rs. 50,000 from the present 1% to 0%, thus making them interest free,

from the year, 2019-20. Since about Rs. 11,000 crores of crop loans in

this category are given every year, the expected cost of interest

subvention will be Rs. 110 crores annually.

Modalities for

implementation

The farm family constitutes of the farmer and his or her spouse

along with their dependent children. The farmer must be a

permanent resident/domicile of Odisha

ii.

The farmer or his/ her spouse should neither be an income tax

payee nor a Government/PSU sector employee.

iii.

The amount will be transferred online directly to the account of

the head of the farm family, wherever possible. However, the

first payment will be made, wherever possible, through cheques

in camp mode for greater transparency.

iv.

The actual numbers indicated may vary based on the

implementation.

An MIS portal shall be developed for monitoring the scheme.

vi.

The SLBC will furnish the technical details for transmitting the

fund in a secured format.

vii.

The scheme will be implemented by the Department of

Agriculture & Farmers' Empowerment, Department of Fisheries &

Animal Resources Development and Cooperation Department

under the supervision of concerned Collector-cum-District

Magistrate at the field level. The detailed modalities for

implementation

will

be worked out by

the concerned

Department.

viii.

A State Level Committee under the chairmanship of Chief

Secretary, Odisha & District Level Committee under the

chairmanship of Collector-cum-District Magistrate shall be

formed to review & monitor the implementation of the scheme

and to suggest changes that may be required.

ix.

An implementation committee will be set-up under the

Chairmanship of Principal Secretary, Agriculture & Farmers'

Empowerment comprising of the Principal Secretary / Secretary

of Departments of Cooperation, Fisheries & Animal Resources

Development and Panchayati Raj & Drinking Water to ensure

smooth implementation of the scheme. They will meet as often

as required.

Financial

Implications

The component-wise details of the financial involvement at

initial phase are as follows:—

Sl.

No.

Component

No. of

beneficiaries

Scale of Assistance

(In. Rs.)

(1)

(2)

(3)

(4)

Support to

cultivators for

cultivation

30.176 lakh

cultivators

Rs. 5000.00 per farm

family per season

Livelihood

support for

landless

agricultural

households

10 lakh landless

agricultural

labourers over 3

years

Rs.12,500 per

household

Financial

Assistance to

vulnerable

agricultural

households

5 lakh

households each

year

Rs.10,000 per

household

Life insurance

support to

cultivators and

landless

agricultural

labourers

32.80 lakh

cultivators and

24.20 lakh

landless

agricultural

labourers

Rs.171.00 per

beneficiary (18-50

years age group). An

additional amount of

Rs.12.00 for (50-70

years age group).

Interest free

Crop loans

20 lakh farmers

Rs. 110 crores per year

towards additional

interest subvention.

Funds

Requirement

The total requirement of funds for each component will be as

follows:—

Sl.

No.

Component

Rs. in crore

(1)

(2)

(3)

Support to cultivators for cultivation

7540

Livelihood support for landless

agricultural households

1250

(1)

(2)

(3)

Financial Assistance to vulnerable

agricultural households

1000

Life insurance support to cultivators and

landless agricultural labourers

170

Interest free Crop loans

220

Total requirement

10,180

N.B: While 2% administrative cost will be provided during the first year

viz. 2018-19; 1% such cost will be provided during the subsequent

2 years.

Review

The scheme will be reviewed during 2020-21 to examine the

learnings from its implementation and to suggest modifications

keeping in view the overall objective of enhancing farmer’s welfare.

ORDER

Ordered that the notification be published in the Extraordinary issue of

Odisha Gazette.

By Order of the Governor

Dr. SAURABH GARG

Principal Secretary to Government

Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

Ex. Gaz. 1902-173+100