Andhra Pradesh’s agricultural landscape has been shaped by contrasting farmer support strategies over the past decade, with the Telugu Desam Party (TDP) government from 2014 to 2019 prioritizing loan waivers to alleviate immediate debt burdens, and the YSR Congress Party (YSRCP) administration from 2019 to 2024 introducing direct cash transfers under YSR Rythu Bharosa to enable ongoing investments and productivity gains, reflecting evolving debates on whether one-time relief or recurring aid better sustains the state’s 1.4 crore farmers amid challenges like erratic monsoons, input costs, and market volatility. These schemes, born from pre-election promises, have collectively disbursed tens of thousands of crores but faced scrutiny over coverage gaps, fiscal sustainability, and political motivations, offering valuable lessons for future rural policy in a state where agriculture employs over 60 percent of the workforce and contributes 30 percent to GSDP.
TDP’s Loan Waiver Scheme: Phased Relief Amid Implementation Hurdles
Launched in 2014 as a cornerstone of TDP’s manifesto under Chief Minister N. Chandrababu Naidu, the loan waiver scheme aimed to redeem agricultural debts up to ₹1.5 lakh per farmer family, capping an initial estimate of ₹70,000–87,000 crore to a more manageable ₹26,000 crore for approximately 49 lakh beneficiaries, including small and marginal farmers, tenants, and cooperatives, with funds released in five equal installments to ease repayment pressure and prevent distress sales or suicides. The scheme’s rollout saw three installments completed by 2017, covering principal and interest, but the fourth and fifth—totaling ₹8,000 crore—were deferred due to fiscal constraints and the 2019 election code, leading to the issuance of bonds promising 10 percent annual interest, a move criticized by opposition YSRCP as a “deceptive tactic” to woo voters without full delivery, as reported in The Hindu (2017). While it provided immediate relief to over 40 lakh families by 2018, excluding larger loans and some cooperatives, the partial execution drew accusations of inequity, with tenant farmers and SC/ST groups often left out, ultimately contributing to TDP’s 2019 defeat amid farmer unrest.
YSRCP’s YSR Rythu Bharosa: Direct Annual Aid for Sustainable Farming
In a shift toward proactive support, YSRCP Chief Minister Y.S. Jagan Mohan Reddy unveiled YSR Rythu Bharosa on October 15, 2019, as part of the Navaratnalu pledges, committing ₹13,500 annually per farmer family—₹4,500 in three installments—to cover crop inputs like seeds, fertilizers, and labor, explicitly including the central PM-Kisan’s ₹6,000 share for a state contribution of about ₹7,500, targeting 50 lakh+ families from SC/ST/BC/minorities, landless tenants, and small holders to foster self-reliance and reduce debt cycles. The scheme’s first year disbursed ₹6,162 crore to 45 lakh beneficiaries, scaling to over ₹30,000 crore by 2024 across 81.9 lakh eligible farmers (landowners and tenants), with Aadhaar-linked DBT ensuring minimal leakage and real-time tracking via a dedicated portal, as per state government data and Vikaspedia reports. Unlike TDP’s one-off waiver, Rythu Bharosa’s recurring nature aimed at long-term productivity, complemented by zero-interest loans and free borewells in later phases, though it faced flak for excluding large landholders and fiscal strain on the state exchequer.
Comparative Impact: Relief vs Investment – Coverage, Criticisms, and Legacy
While TDP’s waiver offered targeted debt redemption for 49 lakh families at ₹26,000 crore—praised for immediate suicide prevention but lambasted for phased delays and exclusions that left 40 percent of loans unaddressed by 2019—YSRCP’s Rythu Bharosa reached 50 lakh+ annually with ₹13,500 direct aid, lauded for inclusivity and speed but critiqued for not addressing structural issues like irrigation or market access, with total outlay exceeding ₹30,000 crore by 2024. Both schemes, politically charged, highlight AP’s agrarian crisis: TDP’s curative approach eased burdens but risked moral hazard, while YSRCP’s preventive model empowered investments but strained budgets, collectively aiding millions yet underscoring the need for hybrid policies integrating debt relief with sustainable credit and crop insurance for enduring farmer prosperity.
