Andhra Pradesh govt mulls revival of Rythu Bandhu scheme

Ongole: In addition to the promises made to farmers in the joint manifesto, the NDA government in the state is planning to reintroduce the Rythu Bandhu Scheme.

The farmers regularly use godowns at the agriculture market yards to store their produce until they receive a better price. But due to the delay in the sale of the produce, the farmers have to take loans at higher interest rates from moneylenders to address the financial needs of the family. This situation is affecting the farmers’ income, and they are forced to suffer losses.

Rythu Bandhu scheme was originally introduced in the united Andhra Pradesh in 1982, as a Pledge Finance Scheme. It was renamed Rythu Bandhu Pathakam in 1995.

Under the scheme, the farmers who stored their produce at the godowns in the agriculture market yards can take an advance of up to 75 per cent of the value of their produce, subject Naresh Nandamto maximum Rs 2 lakh limit per farmer, from the agricultural marketing department.

The farmers need not pay any interest on the advanced amount for up to six months and need to pay a nominal interest for 9 months with a maximum period of storage is 15 months. Between 2014-19, the state government financed 18,410 farmers for to the tune of Rs 197.77 crore under the scheme.

However, the YSRCP government stopped the scheme after introducing Rythu Bharosa Kendras where it promised to purchase of produce from farmers at MSP and payment of amount within 15 days of lifting produce.

A senior state-level official in the marketing department told The Hans India that the government has already conducted a review of Rythu Bandhu Scheme.