KALIA Scheme

The KALIA Scheme—short for Krushak Assistance for Livelihood and Income Augmentation—is a flagship welfare programme launched by the Government of Odisha, India, aimed at accelerating agricultural prosperity and reducing rural poverty. Introduced in December 2018, the scheme provides financial assistance to small and marginal farmers, landless agricultural labourers, and vulnerable households to ensure inclusive and sustainable agricultural growth across the state.

Background and Rationale

Agriculture forms the backbone of Odisha’s rural economy, employing a large share of the population. However, farmers in the state—particularly small and marginal cultivators—face challenges such as fragmented landholdings, inadequate irrigation, fluctuating market prices, and limited access to credit.
The KALIA Scheme was conceptualised in response to these structural constraints. It aimed to provide direct financial support to the most vulnerable sections of the rural economy, thereby empowering farmers, enhancing agricultural productivity, and ensuring social security.
The scheme also sought to serve as an alternative to loan waiver programmes, which had proven fiscally unsustainable and less effective in reaching the most needy.

Objectives of the KALIA Scheme

The KALIA Scheme was designed with five broad objectives:

1. Financial assistance for cultivation: To support small and marginal farmers in meeting agricultural input costs such as seeds, fertilisers, pesticides, and labour.
2. Support for livelihood activities: To aid landless agricultural households in diversifying income through livestock rearing, fisheries, and allied activities.
3. Vulnerability support: To provide direct income support to the elderly, disabled, or landless households without other means of livelihood.
4. Insurance coverage: To protect farmers and their families from the uncertainties of agriculture and accidents.
5. Agricultural development and empowerment: To promote financial inclusion and encourage sustainable agricultural practices.

Through these goals, KALIA was envisioned as a comprehensive livelihood enhancement initiative rather than a simple cash transfer scheme.

Beneficiary Categories

The scheme targets three main categories of beneficiaries:

1. Small and Marginal Farmers:
   • Defined as farmers owning 1 hectare or less of cultivable land.
   • Each eligible farmer receives ₹10,000 per year, distributed as ₹5,000 for each of two cropping seasons (Kharif and Rabi), to meet cultivation expenses.
2. Landless Agricultural Labourers:
   • Households without cultivable land but dependent on agricultural labour for income.
   • Each household receives a one-time financial assistance of ₹12,500 to initiate income-generating activities such as goat rearing, mushroom cultivation, bee-keeping, poultry, or fishery.
3. Vulnerable Agricultural Households:
   • Includes aged, disabled, or widowed persons who cannot engage in cultivation or daily labour.
   • Each household receives an annual financial assistance of ₹10,000 to support basic livelihood needs.

Insurance and Financial Inclusion Components

To safeguard farmers against unforeseen risks, the KALIA Scheme incorporates comprehensive insurance coverage:

• Life Insurance: ₹2 lakh coverage for all farmers and landless labourers aged 18–50, with a nominal premium partly subsidised by the government.
• Personal Accident Insurance: ₹2 lakh coverage for accidental death or disability for beneficiaries aged 18–70.
• Crop Insurance: Farmers are covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY), with premiums fully borne by the state government.

Additionally, KALIA promotes financial inclusion by linking beneficiaries with banks and encouraging the use of Direct Benefit Transfer (DBT) mechanisms to ensure transparency and prevent leakages.

Implementation and Administration

The KALIA Scheme is implemented by the Department of Agriculture and Farmers’ Empowerment, Government of Odisha. Key features of its implementation include:

• KALIA Portal: A dedicated online platform for registration, verification, and monitoring of beneficiaries.
• Green Beneficiary List: Publicly displayed lists at Gram Panchayats to ensure transparency.
• KALIA Scholarship: Educational assistance to children of KALIA beneficiaries pursuing professional and technical courses.
• Convergence with other schemes: The KALIA framework is linked with programmes such as the Mission Shakti, Odisha Livelihood Mission, and PM-KISAN to ensure comprehensive rural development.

The scheme has been implemented in phases, beginning with identification of beneficiaries at the Gram Panchayat level, followed by disbursal of financial assistance through bank transfers.

Budget and Financial Scale

At its inception, the Odisha government allocated around ₹10,000 crore over three years to implement KALIA. As of recent reports, more than 50 lakh small, marginal, and landless households have benefited from the scheme. The funds are disbursed directly to beneficiaries’ bank accounts, ensuring minimal administrative cost and high delivery efficiency.

Outcomes and Impact

The KALIA Scheme has had several notable outcomes:

• Income support: Enabled small farmers to meet input costs without relying on high-interest informal loans.
• Livelihood diversification: Promoted self-employment among landless households through allied activities like poultry and fishery.
• Social inclusion: Extended financial and social protection to vulnerable rural groups, including women-headed households.
• Empowerment: Enhanced financial literacy and inclusion through digital payment systems and DBT.

KALIA also created a platform for integrating other state and central agricultural schemes, allowing for greater efficiency and monitoring of welfare delivery.

Criticisms and Challenges

Despite its achievements, the KALIA Scheme has faced criticism and implementation challenges:

• Identification errors: Inclusion and exclusion issues were reported, with some ineligible households benefiting while genuine farmers were left out.
• Overlap with PM-KISAN: After the launch of the national Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) in 2019, there was confusion regarding coordination and duplication of benefits.
• Administrative burden: Verification of millions of beneficiaries required significant bureaucratic effort and digital infrastructure.
• Fiscal sustainability: The large financial outlay raised questions about long-term budgetary feasibility, especially during revenue shortfalls.

The state government has taken corrective measures, including periodic reviews, data verification, and linkage of KALIA with Aadhaar and land records to reduce irregularities.

Comparison with PM-KISAN

While both schemes aim to support farmers, there are key differences:

Thus, KALIA offers a more comprehensive, inclusive approach, covering a broader base of beneficiaries and integrating social welfare with agricultural development.

Significance and Legacy

The KALIA Scheme has been recognised as one of the most innovative state-level interventions in Indian agriculture. It embodies the principles of direct income support, financial inclusion, and targeted welfare, aligning with the national agenda for farmers’ welfare and rural transformation.
By addressing not only cultivators but also landless labourers and vulnerable rural groups, KALIA has become a model of inclusive agricultural reform. It reflects the broader shift from subsidy-driven approaches to direct benefit transfers and livelihood empowerment, ensuring that development reaches the grassroots.