Question:  Income sustenance schemes for farmers have been able to radically improve rural agri-economy. Analyse.

Answer:  Income sustenance schemes are designed to provide a fixed amount to farmers on the basis of land holdings. The amount is given before a particular farming season through Direct Benefit Transfer. Schemes such as PM KISAN, Rythu Bandhu, KALIA etc work on this model.

Importance of income sustenance schemes for rural economy

• Remove debt cycle
  The scheme will remove the need for farmers to approach money lenders for financing agriculture as they will have capital. This can avoid the debt cycle that is the major reason for farmer suicides.
• Capital for farming
  The initial amount required to buy raw materials and equipments is covered through the money given in form of grant. Farmers do not need to wait for loans to start agriculture.
• Allied economy growth
  The money available for farmers is used to buy seeds, equipments, fertilizers and labour service. This will move the rural economy that is dependent on farming.

Alternative means for rural economic development

• Access to markets
  Instead of grants, more facilities can be provided for farmers to easily accessing the markets. This includes cheaper transport, storage facilities and no middle-men.
• Self sustenance
  There should be efforts to reduce dependency on outside forces. Farmers can reap profits if their dependence is reduced on commercial fertilizers, seeds, pesticides etc.

Thus, income sustenance may have benefitted land-owning farmers up to certain extent but farm labourers and rented farmers also should be considered in future.