Agriculture Investment Support Scheme


Investment is the surest way to enhance agriculture productivity and also income to the farmers, besides breaking the vicious cycle of rural indebtedness. In order to ensure that the farmers do not fall again in to the debt trap, a new scheme called “Agriculture Investment Support Scheme” (“Rythu Bandhu”) is proposed to be implemented from the year 2018-19 Kharif season onwards to take care of initial investment needs of every farmer. A budget of Rs.12,000 Crores has been provided for the financial year 2018-19 by Government of Telangana.

Relieving the Farmers from debt burden and not allowing them to fall in the debt trap again, Rythu Bandhu Scheme is proposed by Government of Telangana for providing Investment Support Agriculture and Horticulture crops by way of grant of Rs. 5,000/- per acre per farmer each season for purchase of inputs like Seeds, Fertilizers, Pesticides, Labour and other investments in the field operations of Farmer’s choice for the crop season.


Agriculture in Telangana State is characterized by poor productivity and production owing to frequent occurrence of droughts, lesser technological penetration and poor investment capacity of the famers, resulting in lower levels of income and social security to the farmers. The majority of the farmers are small, marginal and resource poor, dependent solely on farming for their livelihood.

Keeping this in view, in order to ensure the economic and social security to the farmers, the Government of Telangana has conceptualized and implementing an innovative scheme named as Farmers Group Life Insurance Scheme (Rythu Bima) in addition to other initiatives in agriculture sector. This scheme is first of its kind and unique in the country as it is implemented based on farmer-wise online land data base through Information Technology and Online Portals and MIS that are being used by all the outreach officers for effective and efficient implementation.

The main objective of the Farmers Group Life Insurance Scheme (Rythu Bima), is to provide financial relief and social security to the family members/ dependents, in case of loss of farmer’s life due to any reason. In the event of the loss of the farmer life, their families are facing severe financial problems even for their day-to-day needs. The farmers Group Life Insurance Scheme ensures financial security and relief to the bereaved members of the farmer’s family. Farmers in the age group of 18 to 59 years are eligible for enroll under the scheme. The entire premium is paid by the government to the Life Insurance Corporation of India (Largest public sector PSU for Insurance in India).In the event of the death of the enrolled farmer due to any cause including natural death, the insured amount of 5.00 Lakhs INR (Approx. USD 6928) is deposited into the designated nominee account within (10) days. This scheme has a tremendous impact on the lives of the bereaved families and helping their livelihoods, since most of them are resource poor small farmers and belong to weaker sections of the society.

This scheme has been implemented through the Information Technology with development of Online Portals and MIS developed by National Informatics Centre (NIC). The uniqueness of this scheme is that, the nominee is not required to approach any office for the settlement of claim amount. The outreach officers at village level collects data from revenue department in the event of loss of life of any farmer and submitted to the LIC on behalf of designated nominee of the farmer. The claimed amount would be transferred through RTGS into nominees account.

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