Category: Policy Analysis • Published: August 2024 • Reading Time: 10 minutes

When Telangana launched Rythu Bandhu in 2018, it became India's first state to provide direct investment support to farmers. Andhra Pradesh responded with its own scheme, YSR Rythu Bharosa, in 2019. Both programs represent landmark shifts in agricultural policy - moving from loan waivers and subsidies to direct cash transfers. But which scheme serves farmers better? This detailed comparison examines both programs to help farmers understand their benefits and limitations.

Quick Comparison at a Glance

Feature Rythu Bandhu (Telangana) YSR Rythu Bharosa (AP)
Launch Year 2018 2019
Annual Amount ₹10,000 per acre ₹13,500 (landowners), ₹9,000 (tenants)
Payment Schedule ₹5,000 twice (Kharif + Rabi) ₹7,500 + ₹4,000 + ₹2,000 (3 installments)
Tenant Farmers Not covered Covered (₹9,000/year)
Upper Limit No limit No limit
Beneficiaries ~60 lakh farmers ~55 lakh farmers
Annual Budget ~₹14,000 crore ~₹7,500 crore

Rythu Bandhu (Telangana) - Detailed Analysis

How It Works

Rythu Bandhu provides direct investment support based on land ownership:

  • ₹5,000 per acre per season (Kharif and Rabi)
  • Total ₹10,000 per acre per year
  • No upper ceiling - larger farmers get proportionally more
  • Direct Bank Transfer (DBT) to farmer's account
  • Paid before each crop season begins

Eligibility Criteria

  • Must own agricultural land in Telangana
  • Land records must be updated in Dharani portal
  • Aadhaar linked to bank account
  • No income or acreage restrictions

Exclusions

  • Government employees (all cadres)
  • Income tax payers
  • Professionals (doctors, lawyers, engineers, CAs, etc.)
  • Elected representatives (Ministers, MPs, MLAs, etc.)
  • Pensioners drawing ₹10,000+ per month
₹10,000
Per Acre/Year
60L
Farmer Families
1.5Cr
Acres Covered
2018
Launched

Strengths of Rythu Bandhu

  1. Simple Formula: Easy to calculate - just acres × ₹10,000
  2. Timely Payment: Consistently paid before crop seasons
  3. No Leakages: Direct bank transfer eliminates middlemen
  4. Investment Support: Meant for input purchase, reducing debt
  5. Universal: All landowners covered regardless of crop or farm size

Criticisms and Limitations

  1. Excludes Tenant Farmers: Over 30% of cultivators in TS are tenants
  2. Regressive: Larger landowners get more in absolute terms
  3. Not Linked to Cultivation: Even fallow land qualifies
  4. Gender Gap: Benefits mostly male landowners
  5. Fiscal Burden: ₹14,000+ crore annual cost strains state finances

YSR Rythu Bharosa (Andhra Pradesh) - Detailed Analysis

How It Works

YSR Rythu Bharosa combines state support with PM-KISAN:

  • For Landowners: ₹13,500 per year (state ₹7,500 + PM-KISAN ₹6,000)
  • For Tenant Farmers: ₹9,000 per year (state scheme only)
  • Paid in three installments per year
  • Flat amount regardless of land size

Payment Schedule for Landowners

  • May (Kharif): ₹7,500 (state) + ₹2,000 (PM-KISAN)
  • October (Rabi): ₹4,000 (state) + ₹2,000 (PM-KISAN)
  • January: ₹2,000 (state) + ₹2,000 (PM-KISAN)

Eligibility Criteria

  • Must be a farmer in Andhra Pradesh
  • Land records in WebLand portal (for landowners)
  • Tenant certification by village revenue assistant (for tenants)
  • Aadhaar-linked bank account

Exclusions

  • Government employees
  • Income tax payers
  • Pensioners (state/central government)
  • Professionals with registered practice
₹13,500
For Landowners/Year
₹9,000
For Tenants/Year
55L
Farmer Families
2019
Launched

Strengths of YSR Rythu Bharosa

  1. Includes Tenant Farmers: Recognizes actual cultivators, not just landowners
  2. Progressive: Small farmers benefit equally with large farmers
  3. PM-KISAN Integration: Leverages central scheme for additional support
  4. Lower Fiscal Burden: Flat payment means lower state expenditure
  5. Recognition of Tenancy: Historic step in tenant farmer rights

Criticisms and Limitations

  1. Lower Amount for Large Farmers: A 10-acre farmer gets same as 1-acre farmer
  2. Tenant Identification Challenges: Many tenants face documentation difficulties
  3. PM-KISAN Dependency: Central scheme changes could affect total amount
  4. Verification Burden: Annual re-certification required for tenants

Which Scheme Benefits Whom?

Scenario 1: Small Farmer (2 acres owned)

Scheme Annual Benefit
Rythu Bandhu ₹20,000
YSR Rythu Bharosa ₹13,500

Winner: Rythu Bandhu (by ₹6,500)

Scenario 2: Large Farmer (10 acres owned)

Scheme Annual Benefit
Rythu Bandhu ₹1,00,000
YSR Rythu Bharosa ₹13,500

Winner: Rythu Bandhu (by ₹86,500)

Scenario 3: Tenant Farmer (cultivating 3 acres, owns nothing)

Scheme Annual Benefit
Rythu Bandhu ₹0
YSR Rythu Bharosa ₹9,000

Winner: YSR Rythu Bharosa (tenant gets support)

Complementary Schemes

Telangana's Additional Support

  • Rythu Bima: ₹5 lakh life insurance for farmers (free)
  • Free Electricity: No charges for agricultural pump sets
  • 24/7 Power: Continuous power supply to agriculture

AP's Additional Support

  • YSR Free Crop Insurance: Zero premium crop insurance
  • Rythu Bharosa Kendras: One-stop service centers in every village
  • Zero Interest Loans: Interest subvention on crop loans

How to Avail These Benefits

For Rythu Bandhu (Telangana)

  1. Ensure land records are updated in Dharani portal
  2. Link Aadhaar to your bank account
  3. Verify your details at the Mandal Revenue Office if needed
  4. Payment is automatic once registered - check SMS alerts
  5. Verify receipt in your bank passbook

For YSR Rythu Bharosa (AP)

  1. For landowners: Update records in WebLand portal
  2. For tenants: Get certification from Village Revenue Assistant
  3. Visit your local Rythu Bharosa Kendra for registration
  4. Link Aadhaar to bank account
  5. Payment credited automatically per schedule

The Bigger Picture

Both schemes represent a paradigm shift in agricultural policy:

  • From Subsidies to Transfers: Direct cash instead of subsidized inputs
  • Farmer Choice: Farmers decide how to use the money
  • Reduced Corruption: DBT eliminates middlemen
  • Income Security: Guaranteed support regardless of crop success

However, these schemes alone cannot solve all agricultural challenges. They work best when combined with:

  • Improved market access and fair prices
  • Irrigation and water management infrastructure
  • Agricultural extension services
  • Crop insurance and risk mitigation

Beyond Government Support

While income support schemes provide a safety net, better market prices can significantly improve farm income. Connect with buyers directly through Jaikisan Marketplace to get better returns for your produce.

Conclusion

Both Rythu Bandhu and YSR Rythu Bharosa are significant policy innovations that put money directly in farmers' hands. The "better" scheme depends on your situation:

  • If you own land (especially larger holdings): Rythu Bandhu provides higher absolute support
  • If you're a tenant farmer: YSR Rythu Bharosa is the only option that recognizes you
  • If you're a marginal farmer (less than 1.5 acres): The schemes provide similar effective support

What matters most is that both states have committed significant resources to farmer welfare. As a farmer, ensure you're registered correctly, keep your documents updated, and claim what you're entitled to. These schemes are your right - make sure you receive them.