An Evaluation Study of Prime Minister’s Rehabilitation Package for Farmers in Suicide-Prone Districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra M. J. Bhende and P. Thippaiah Agricultural Development and Rural Transformation Centre Institute for Social and Economic Change, Bangalore September 2010 i An Evaluation Study of Prime Minister’s Rehabilitation Package for Farmers in Suicide-Prone Districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra M. J. Bhende and P. Thippaiah Agricultural Development and Rural Transformation Centre Institute for Social and Economic Change, Bangalore September 2010 i Contents Page No. List of Tables i List of Figures iv List of Photos iv Acknowledgements v Preface vii Chapter 1 Introduction 1 - 9 Introduction 1 1.2 PM’s Rehabilitation Package 2 1.3 Progress in Implementation of the Package in Four States 5 1.4 Need for the Study 7 1.5 Objectives 8 1.6 Methodology 8 1.7 Outline of the Study 9 Chapter 2 Overview of Prime Minister’s Rehabilitation Package for Farmers in Suicide-Prone Districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra 10 - 40 2.1 Ex-gratia Payment 10 2.2 Credit Component 11 2.2.1 Interest Waiver 11 2.2.2 Rescheduling of Loans and Disbursement of Fresh Loans 12 2.2.3 Additional Credit Flow after Rescheduling of Overdue 14 Non-Credit Related Measures 17 2.3 Assured Irrigation 17 2.4. Agriculture 19 2.4.1 Seed Replacement Programme 19 2.4.2 Micro Irrigation 22 2.4.3 Extension services 24 2.5 Subsidiary Income Activities 26 2.5.1 Animal Husbandry 26 2.5.2 Fisheries Development 31 ii 2.6 Horticulture 33 2.7 Watershed Development 35 2.7.1 Participatory Watershed Development Programme 35 2.7.2 Construction of Check dams 37 2.7.3 Rain Water Harvesting structures 39 Chapter 3 Agro-Economic Profile of the Selected Districts 41 - 71 Agro-Economic Profile of the Selected Districts Introduction 3.1 Andhra Pradesh 41 3.1.1 Main Features of the Selected Districts 41 3.1.2. Basic Features of Sample Farmers 45 3.1.3 Crops Grown 46 3.1.4 Livestock owned and Milk Production 47 3.2 Karnataka State 48 3.2.1 Main Features of the Selected Districts 48 3.2.2. Basic Features of Sample Farmers from Karnataka 52 3.2.3 Crops Grown 53 3.2.4 Livestock owned and Milk Production 54 3.3 Kerala State 55 3.3.1 Main Features of the Selected Districts 55 3.3.2. Basic Features of Sample Farmers from Kerala 62 3.3.3 Crops Grown 63 3.3.4 Livestock owned and Milk Production 63 Maharashtra State 64 3.4.1 Main Features of the Selected Districts 64 3.4.2. Basic Features of Sample Farmers from Maharashtra 68 3.4.3 Crops Grown 69 3.4.5 Livestock Owned and Milk Production 70 iii Chapter 4 Implementation of the Prime Minister’s Relief Package: Evidence from Field Survey 72 - 114 Introduction 72 4.1 Awareness about the PM rehabilitation Package 73 4.2. Ex-gratia Payment 74 4.3 Credit Measures: Restructuring /Rescheduling of Overdue loans / Interest waiver and Fresh Loans 76 4.4 Seed Replacement 79 4.5 Micro Irrigation- Sprinkler/Drip irrigation 83 4.6 Extension services 87 4.7 Subsidiary Income Generating Activities 89 4.7.1 Animal Husbandry 89 4.7.2 Fisheries 94 4.8 National Horticulture Mission (NHM) 98 4.9 Minor Irrigation 103 4.10 Major and Medium Irrigation 108 4.11 Participatory Watershed Programme 109 4.12 Proportion of households benefiting from more than one scheme 112 4.13 Any other Government Programme 114 Chapter 5 Summary and Concluding Remarks 115-147 II. Methodology and selection of samples 116 III. Over View of Prime Minister’s Rehabilitation Package for Farmers in Suicide-Prone Districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra 117 I. Ex-gratia Payment 118 II. Credit Component 118 III. Seed Replacement 119 IV. Micro-Irrigation 120 V. Extension Services 121 VI. Subsidiary Income Generating Activities 122 iv a) Animal Husbandry 122 b) Fisheries 123 VII. National Horticulture Mission (NHM) 124 VIII. Assured Irrigation 125 IX. Participatory Watershed Programme 127 A. Participatory Watershed Development Programme 127 B. Construction of Check dams 128 C. Rain Water harvesting structures 129 X. Evidence from Field Survey 130 1. Awareness about the P M rehabilitation Package 131 2. Ex-gratia Payment 131 3 Credit Components 132 4. Seed Replacement 133 5. Micro Irrigation- Sprinkler/Drip irrigation 134 6. Extension services 135 7. Subsidiary Income Generating Activities 136 7.1 Animal Husbandry 136 7.2 Fisheries 138 8. National Horticulture Mission (NHM) 139 9. Minor Irrigation 141 10. Participatory Watershed Programme 142 XI. Concluding Remarks and Suggestions 143 Annexure 148-152 Annexure Table 4.1: Grants Released and Actual Expenditure 153 Incurred on Extension Activities Annexure Table 4.2: Physical and Financial Targets and 153 Realization under Special Livestock Package as on March 2009 Annexure Table 4.3: Benefits received under Horticulture 154 Scheme to Sample Households – Andhra Pradesh Annexure Table 4.4: Benefits received under Horticulture 154 Scheme to Sample Households – Maharashtra Annexure 5: Reviewer’s Comments and Responses 155 References 156-157 v List of Tables Sl.No. Table Title of the Table Page No. No. 1 Table List of identified districts in four selected 3 1.1 states 2 Table Financial summary of rehabilitation package 4 1.2 by States 3 Table Component-wise financial summary of the 6 1.3 Rehabilitation Package in Four States as on June 30, 2008 4 Table Beneficiaries of Prime Minister’s ex-gratia 11 funds 2.1 5 Table Interest waived and number of farmers 12 2.2 benefited * 6 Table Overdue loans rescheduled and number of 13 2.3 farmers benefited 7 Table Additional credit flow to the agriculture sector 15 2.4 8 Table Number of projects and financial assistance 18 2.5 sanctioned under assured irrigation facilities package as on March 2009 9 Table Distribution of certified seed, number of 21 2.6 beneficiaries and subsidy (2006-07 to 2008- 09) as on March 2009 10 Table Allocation, release of funds and progress made 23 2.7 under micro irrigation (as on March 31, 2009) 11 Table Allocation, release and utilization of grants for 25 2.8 Agriculture Technology and Management Agency (ATMA) Extension Services as on March 31, 2009 12 Table Amount Received and Expenditure Incurred 28 2.9 under Subsidiary Income Activities Scheme (as on March 31, 2009) vi 13 Table Progress in implementation of fisheries 32 2.10 component 14 Table Progress of National Horticulture Mission 34 2.11 15 Table Socio-Economic Characteristics of Sample 46 Households – AP 3.1 16 Table Average area under Crop Groups of Sample 47 3.2 Households 17 Table Average Number of Livestock Owned per 48 3.3 household 18 Table Socio-Economic Characteristics of Sample 53 Households – AP 3.4 19 Table Average area under Crop Groups of Sample 54 3.5 Households 20 Table Average Number of Livestock Owned per 55 3.6 household 21 Table Socio-Economic Characteristics of Sample 62 Households 3.7 22 Table Average area under Crop Groups of Sample 63 3.8 Households 23 Table Average Number of Livestock Owned per 64 3.9 household 24 Table Socio-Economic Characteristics of Sample 69 Households 3.10 25 Table Average area under Crop Groups of Sample 70 3.11 Households vii 26 Table Livestock Owned and Milk Production 70 3.12 27 Table Distribution of Households by Source of 74 Information 4.1 28 Table Total number of beneficiaries of Ex-gratia 75 4.2 Payment and average amount received in the selected districts (from 2006 to March, 2009) 29 Table Average Quantity of Seeds Supplied, Subsidy 80 4.3 Component and Area Covered by Certified Seeds 30 Table Average area covered under micro irrigation 84 4.4 (Drip/Sprinkler), total cost and subsidy per beneficiary household in the selected districts 31 Table Total Cost, Subsidy Amount/ Beneficiary for 91 4.5 livestock Package 32 Table Development of Fisheries under PM Package 95 4.6 on sample farms in Karnataka 33 Table Development of Fisheries under PM Package in 97 Kerala 4.7 34 Table Total Outlay, Release and Utilization of NHM 99 4.8 Assistance under PM Package (as of June 30, 2008) 35 Table Physical and Financial Targets and 102 4.9 Achievement of NHM in Sample districts of Karnataka 36 Table Progress of Minor Irrigation Works under PM 105 4.10 Relief Package in the Selected Districts of Karnataka 37 Table Increase in Irritated Area under Minor 107 Irrigation Scheme 4.11 38 Table Progress of Major and Medium Irrigation 108 4.12 Projects under PM Package in the Selected Districts of Karnataka 39 Land treated under Watershed programme 110 Table and Water harvesting Structures Constructed 4.13 on sample farms in Andhra Pradesh viii 40 Table Watershed Development in the Selected 111 4.14 Districts of Karnataka under PM Relief Package Project (Sujala-II) 41 Table Land treated under Watershed Programme 112 4.15 and Water Harvesting Structure Constructed – Maharashtra 42 Table Beneficiaries by Number of Schemes Availed 113 4.16 and Average Size of Holdings in the Selected Districts of Karnataka 43 Table Benefits availed from other government 114 4.17 programmes by the selected farmer households List of Figures Page No. Fig. 1 Statewise Financial Summary of PM Package 5 Fig. 2. Financial Allocation by Components 7 Fig.3 Actual Disbursement against the Target 16 Fig. 3.1 Crop-wise Area used for Cultivation 58 List of Photos Page No. Pic.1. Fishpond at Kallahalli in Hassan district 96 Pic. 2. Fish-pond at Shanthi Grama, Hassan 96 Pic. 3. Vanashivi Katte, Thirupathihalii, Hassan Taluk 104 ix
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