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A catch 22 subsidy
Highlights
In what can be termed as a fine example of a lopsided policy, the Telangana government’s penchant to promote poly houses is not in sync with reality. Even as farmers are taking their lives for as low as Rs 20,000 debt, the Department of Horticulture, Telangana, is dishing out 75 per cent subsidy for poly houses.
The government subsidy of Rs 23 lakh for setting up a poly house is equivalent to the subsidy given to 96 farmers. While the small and marginal farmers can ill- afford to invest lakhs of rupees, the business and rich class is cashing in on the 75 per cent subsidy given by the government
All about poly house
- The minimum area required to set up a poly house is 200 sq mts and the maximum is 3 acres. It takes two months to set up a poly house
- Plastic sheet protects the crop from rain and wind but the maintenance cost is high
- It costs Rs 40 lakh to set up a poly house in an acre. Govt gives 75 per cent subsidy
- The Return on Investment (RoI) is about three year period
- 130 acres of poly houses have been sanctioned since Telangana State was formed
- Rs 250 crore is earmarked for 2015-16 for poly houses and Rs 30 crore subsidy was given in 2014-15
- Tomato, cucumber, capsicum, leafy vegetables, broccoli, brinjal, green chili, beans and in flowers; jerbera, marigold, carnation and roses can be grown in poly houses
Hyderabad: In what can be termed as a fine example of a lopsided policy, the Telangana government’s penchant to promote poly houses is not in sync with reality. Even as farmers are taking their lives for as low as Rs 20,000 debt, the Department of Horticulture, Telangana, is dishing out 75 per cent subsidy for poly houses.
What is baffling is the cost incurred, the structure itself costs Rs 24 lakh for an acre and with the plastic and other materials it goes up to Rs 40 lakh. A farmer would have to invest Rs 10 lakh for an acre and the rest comes in the form of subsidy, but how many farmers can afford is the question.
The Department of Horticulture has earmarked Rs 250 crore for 2015-16 and wants to extend the poly houses to 850 acres. G V Ramanjaneyulu, Director, Centre for Sustainable Agriculture, says, “Small and marginal farmers cannot afford poly houses, moreover, they are not suitable for tropical conditions.
According to our survey in 90 per cent of the poly houses there is no activity. If the Rs 250 crore is given to farmers who are burdened with debt precious lives could be saved.”
The government subsidy of Rs 23 lakh for an acre of poly house is equivalent to the subsidy of 96 farmers. Poly houses re- ceived a fillip after the formation of Telan- gana. Prior to that in the last decade, 130 acres were brought into poly houses un- der the Mission for Integrated Develop- ment for Horticulture a central and state assisted programme.
Since June 2014 till date another 130 acres was added. When asked about the viability and use- fulness of poly houses, Venkatram Reddy, Commissioner, Department of Horticul- ture, said, “One can have unseasonal pro- duction with less use of fertilizers and pesticides. Farmers can supply vegetables throughout the year.
Poly houses can feed the city with vegetables all through the year.” The scheme was started for farmers within 100 km radius from Hyderabad but now the department has plans of spread- ing it to all the districts in Telangana. “The target is to touch 850 acres,” said Venka- tram Reddy.
In Ranga Reddy district alone, 64 acres have been sanctioned since April this year but it is not the small farmers who are the beneficiaries but the nouveau riche mostly who are settled in Hyderabad. For instance, Pavani, a bank manager, in- vested in a poly house at Kandakur, Sri- sailam road, but has not been lucky and has lost her investment.
There are a few who have managed to make profits but most of the poly houses have failed. Narsimha Reddy, president, Poly House Farmers’ Association of Telangana, admits: “The initial invest- ment is high and not all can afford. I have been lucky and make good profits.” In his case he was an early bird and the first one in Telangana to invest in 2004.
“Strong winds can damage the plastic and one would have to replace the plastic sheets once in 3-4 years which costs anywhere between Rs 2 lakh and Rs 3 lakh.
By:T P Venu
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