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What is KALIA Scheme?

What is KALIA Scheme?


  • GS 3 || Economy || Agriculture || Agricultural Credit

Why in News?

  • Odisha’s agricultural scheme Krushak Assistance for Livelihood and Income Augmentation (KALIA)

 Provisions of the scheme

  • Scheme supports to financial, livelihood and pay cultivation and associated activities.
  • Supported by Insurance facilities to small, marginal and landless farmers.
  • The scheme benefits 92% of the cultivators in the state and include every category of farmers.
  • Under the scheme, all farmers in the state will be provided Rs 10,000 per family as assistance for cultivation.
  • Each family will get Rs 5,000 separately in the kharif and rabi seasons, for five cropping seasons between 2018-19 and 2021-22.
  • Since the scheme is not linked to the amount of land owned, it will greatly benefit sharecroppers and cultivators, most of who own little or no land.
  • The scheme will assist the elderly, sick and differently-abled population who are unable to take up cultivation, by providing Rs 10,000 per household per year.
  • But will not be implemented immediately, as Odisha already offers free healthcare and disburses old-age pensions.
  • It also includes a life insurance cover of Rs 2 lakh and additional personal accident coverage of the same amount for 57 lakh households.
  • It further provides that crop loans up to Rs 50,000 are interest-free

 Benefits to the Labors

  • The scheme targets 10 lakh landless households, and specifically SC and ST families.
  • Unit cost of Rs 12,500 for activities like goat rearing, mushroom cultivation, beekeeping, poultry farming and fishery.
  • The beneficiary is encouraged to choose an activity with which he is familiar because these trades require some skill and network.
  • To identify an existing capacity of a beneficiary and build on it.
  • Government is also working on a skilling component to be added to this form of assistance

 Scheme’s Target

  • The scheme is going to be an area-specific scheme wherein an input support for a particular trade, say mushroom cultivation, will be provided if it is prevalent throughout that locality so that there is aggregation of produce.
  • A critical trade like dairy production has deliberately been kept out of the scheme, because keeping a cow is more expensive, while milk production needs to have a collection route or agency that processes and refines this low shelf-life product.
  • On the other hand, poultry farming and fishery do not need a strong ecosystem to survive and has a ready market of consumption or cheap method of preservation.
  • Similarly, beekeeping is done by many self-help groups, so they are already familiar with the networks of that trade.
  • Hence, activities like mushroom cultivation, poultry farming and beekeeping are covered under the scheme.

 Differentiation from Loan Waiver Scheme

  • KALIA’s main targets are rural activities as a whole.
  • The scheme will support farming on a small scale like sharecropping, fishing, animal herding, which are not covered under bank loans, but are caught in debt traps set up by local moneylenders.
  • Also, a farm loan waiver will reduce credit available to farmers in the long term.
  • On the other hand, income support can be used to make a repayment or atleast activate a bank account which can then receive a loan.