Telangana solution: Paying cash to farm landowners is riddled with problems

The state's move seems to be aimed primarily at cost reduction without covering the price risks

Telangana’s path-breaking initiative to pay lump sum cash aid to farmers on the basis of their landholdings can prove useful if some of its glaring loopholes and flaws are suitably rectified. This programme, the first of its kind in the country, involves paying Rs 4,000 per acre (around Rs 10,000 a hectare) to every farmer twice a year (for the kharif and rabi seasons) to cover the cost of major farm inputs such as fertilisers, seeds and pesticides. With power being already supplied free of cost, these farmers need to bear only the labour expenses on their own. This plan