Streamlining Farm Support: The Role of PM-Rashtriya Krishi Vikas Yojana in India’s Agricultural Reforms

Why in News ?

The Union Ministry of Agriculture and Farmers Welfare has proposed to merge three ongoing agricultural schemes with its flagship Pradhan Mantri–Rashtriya Krishi Vikas Yojana (PM-RKVY). The move is aimed at simplifying scheme architecture, improving fund utilisation, and linking financial assistance to state-level agricultural reforms, reflecting the Centre’s push for outcome-oriented and decentralised agricultural development.

Background: Need for Rationalising Agricultural Schemes

India’s agricultural sector is supported by a large number of central and centrally sponsored schemes, often leading to:

• Overlapping objectives
• Fragmented funding
• Administrative inefficiencies

At the same time, agriculture faces multiple challenges such as:

• Stagnant productivity
• Rising climate risks
• Regional disparities
• Post-harvest losses

The proposed consolidation under PM-RKVY seeks to provide a flexible, state-driven umbrella framework to address these issues more effectively.

What is Pradhan Mantri–Rashtriya Krishi Vikas Yojana ?

Pradhan Mantri–Rashtriya Krishi Vikas Yojana (PM-RKVY) is a Centrally Sponsored Scheme (CSS) implemented by the Ministry of Agriculture and Farmers Welfare to accelerate agricultural growth and enhance farmers’ income. The scheme emphasises state-led planning, allowing states to design and implement agriculture and allied sector projects based on local priorities and agro-climatic conditions.

Objectives of PM-Rashtriya Krishi Vikas Yojana

• Encourage states to increase public investment in agriculture and allied sectors
• Enhance agricultural productivity and overall farm-sector growth
• Strengthen agricultural and post-harvest infrastructure to reduce losses
• Promote diversification into high-value crops, horticulture, livestock, and fisheries
• Encourage adoption of modern, innovative, and climate-resilient farming practices
• Reduce regional disparities in agricultural development

Key Features of PM-Rashtriya Krishi Vikas Yojana

1. State-Led and Decentralised Approach

• States have flexibility to:
  • Identify priorities
  • Design projects
  • Implement interventions suited to local needs
• Enhances cooperative federalism in agriculture

2. Growth-Oriented Framework

• Targets a sustained annual agricultural growth rate of around 4%
• Focus on both productivity and income enhancement

3. Wide Sectoral Coverage

Supports a broad range of activities, including:

• Crop production
• Horticulture
• Livestock and fisheries
• Organic and natural farming
• Agricultural research and innovation
• Marketing and post-harvest infrastructure

4. Incentive-Based Funding Mechanism

• Financial assistance linked to:
  • States’ commitment to increasing public investment
  • Adoption of reforms and outcome-based planning
• Encourages accountability and performance

Funding Pattern under PM-RKVY

• General States:
  • 60% Centre
  • 40% State
• North-Eastern and Hilly States:
  • 90% Centre
  • 10% State
• Union Territories:
  • 100% Central funding

This differentiated pattern ensures equity while recognising fiscal capacities of states.

Significance of Merging Schemes under PM-RKVY

• Reduces duplication and administrative overhead
• Enhances flexibility in fund utilisation
• Strengthens outcome-based monitoring
• Empowers states to adopt region-specific solutions
• Aligns agricultural spending with reform-oriented incentives

Challenges and Way Ahead

Implementation Challenges

• Ensuring effective monitoring of decentralised projects
• Capacity constraints at the state and district levels

Federal Concerns

• Balancing state autonomy with national priorities
• Avoiding excessive conditionalities linked to funding

Way Forward

• Strengthening data-driven evaluation
• Capacity building of state agricultural institutions
• Transparent outcome-based fund release mechanisms
• Aligning PM-RKVY with climate-resilient and sustainable agriculture goals