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Augmenting Agrarian Livelihoods in the Time of Crisis: A Baseline for KALIA -Sarthak Gaurav

-Odisha Economy Discussion Series-2, April 2019, Nabakrushna Choudhury Centre for Development Studies, Bhubaneswar

Purpose – The recently launched KALIA scheme of the Government of Odisha is a massive direct benefit transfer (DBT) scheme aimed at improving the condition of around three million farm households along with that of landless cultivators, sharecroppers, agricultural labourers, and vulnerable households. However, evaluations of the impacts of the scheme are likely to face difficulties in the absence of an appropriate counterfactual. This study discusses how the policy changes could transmit into impacts for farm households and briefly presents the evidence on impact evaluation of conditional cash transfers programmes across the globe. Furthermore, this study offers a baseline for agricultural livelihoods in the state.

Design/ methodology/approach – The study discusses frameworks for evaluation of the impact of direct benefit transfers such as KALIA. It uses the Agriculture Census 2015-16 to understand the patterns of operational holding in the state. In order to generate an estimate of the cultivation income relevant for a baseline of KALIA, and examine the scope of livelihood augmentation programmes, it uses unit level data from the NSS 70th Round Situation Assessment Survey of Agricultural Households, 2012-13.

Findings – Findings suggest that the preponderant small and marginal farmers in the state of Odisha receive abysmally low returns from cultivation. Financial assistance under KALIA though justifiable as a temporary relief may not suffice to create sustainable livelihood impacts unless structural problems in agricultural markets are fixed, and greater non-farm diversification opportunities are created in the state.

Originality/ value – Despite the general state of agrarian crisis in the country and concerns about low agricultural incomes in the state of Odisha, there is no baseline for understanding how livelihood augmentation programmes such as KALIA could impact welfare of agricultural households. This study uses unit level data from NSSO and Agriculture Census data to construct such a baseline. In doing so, it highlights the low net returns to cultivation across size-class of land possessed and identifies potential policy implications. It also emphasizes the need for rigorous evaluation of impacts of public programmes such as KALIA.

Please click here to access the study.