Farm Investment Support and Rural Migration: Evidence from the Rythu Bandhu Scheme in Telangana, India

Abstract

This paper examines the influence of agricultural investment support on rural migration in Telangana, India, specifically regarding the Rythu Bandhu Scheme (RBS). This study analyzes primary survey data from 420 farmers in the northern (Adilabad), central (Warangal), and southern (Mahabubnagar) agro-climatic zones of Telangana to determine if direct cash transfers for agricultural investment mitigate rural migration. Farmers' perceptions regarding migration decrease were assessed using an ordinal scale and evaluated by an ordered logistic regression model, supplemented with marginal effects estimation.

The findings reveal that farm investment support under RBS has a statistically significant and beneficial impact on decreasing migration. High investment support enhances the likelihood that farmers concur or strongly concur that migration has diminished as a result of the scheme. The size of landholdings and the type of farming are major factors, indicating that farm structure is essential in influencing migration responses. Furtyher, gender, social classification, and agricultural experience significantly affect migration results, underscoring the socio-economic aspects of rural mobility.

The findings suggest that Rythu Bandhu surpasses its primary function as an agricultural input support scheme, facilitating broader livelihood stabilization by alleviating liquidity restrictions and enhancing the economic sustainability of farming. The study recommends that farm investment support can effectively reduce distress-driven migration when combined into a comprehensive rural development framework. These inferences hold significant suggestions for the formulation of income support and agricultural investment policies planned to foster rural stability and inclusive growth.