Rashtriya Krishi Vikas Yojana (RKVY)

7 Mins

What is Rashtriya Krishi Vikas Yojana (RKVY)?

The Rashtriya Krishi Vikas Yojana was launched in 2007 as an umbrella scheme to ensure the holistic development of agriculture and allied sectors. The scheme allows each State Government to choose their own agriculture and allied sector development activities. These activities are based on district and state agriculture plans. Owing to concerns about the poor expansion of agriculture and related services, the National Development Council (NDC) launched this initiative. With 100% funding from the Central Government, the initiative was implemented as an Additional Central Assistance to State Plan Scheme. Since 2015-16, the funding structure has been changed to a 60:40 split between the Centre and the States.

Since its start, the program has progressed significantly. Moreover, it has been executed across two plan periods. Crop development, horticulture, agricultural mechanization, natural resource management, marketing and post-harvest management, animal husbandry, dairy development, fisheries, and extension are amongst the sectors where the project has made progress.

The Central Government of India has revisited the Rashtriya Krishi Vikas Yojana. It launched an extended version of RKVY. The new version is Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY – RAFTAAR).

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Objectives of Rashtriya Krishi Vikas Yojana

The RKVY aims at a growth in the agriculture sector by adopting a holistic development of Agriculture and allied sectors. The following are the objectives of Rashtriya Krishi Vikas Yojana:

To encourage each state government to enhance public investment in agriculture and related industries.
To give State governments more flexibility and autonomy in designing and implementing agricultural and related sector programmes.
Through targeted interventions, achieve the goal of minimizing yield gaps in critical crops.
To ensure that agriculture plans are prepared for districts and states. The plan must be based on agro-climatic conditions, technology availability, and natural resources.
To guarantee that local needs or crops or priorities are more accurately reflected in state agriculture plans.
Using a holistic approach, bring about quantifiable changes in the production and productivity of many components of agriculture and associated sectors.
To optimize returns to farmers in the agriculture and related industries.

What are the Features of Rashtriya Krishi Vikas Yojana?

The RKVY is a State Government scheme. The Central Government of India provides funds to Rashtriya Krishi Vikas Yojana.
A state’s eligibility for the RKVY is subject to the State’s Plan expenditure for agricultural and allied sectors remaining constant or increasing.
The baseline spending is calculated using the State Government’s average expenditure for the three years preceding the previous year.
The mandatory development of local and state agriculture plans.
RKVY encourages each state for a convergence with other programs, such as NREGS.
The funding pattern is a one-hundred % Central Government Grant.
If the state reduces its commitment in subsequent years and withdraws from the RKVY basket, the states will have to commit the remaining resources to finish the projects that have already begun.
Because it is an incentive program, there is no automatic allocations of funds.
The scheme aims to integrate agriculture and allied sectors comprehensively.
RKVY provides high levels of flexibility to each of the State Governments.
The Central Government encourages projects that project and adhere to definite time-lines.

Eligibility Criteria For Rashtriya Krishi Vikas Yojana

RKVY RAFTAAR has now been revamped as a Centrally Sponsored Scheme for way forward. Hence, States are contributing for their share. Consequently, all States and Union Territories are eligible for allocation of funds under RKVY RAFTAAR.

Allocation of Funds To State Government and Union Territories

In the north eastern and mountainous states the sharing pattern is 90:10. RKVY-RAFTAAR administers as a Centrally Sponsored Scheme in the ratio of 60:40 (Government of India and State Share). The list of allied sectors is the basis for determining the sectoral expenditure. The erstwhile Planning Commission suggests such a list of allied sectors. The allied sectors include the following:

Crop Husbandry (including Horticulture)
Animal Husbandry and Fisheries
Dairy Development
Agricultural Research and Education
Forestry, and Wildlife
Plantation and Agricultural
Marketing
Food Storage and Warehousing
Soil and Water Conservation
Agricultural Financial Institutions
Other Agricultural Programmes and Cooperation.

The Rashtriya Krishi Vikas Yojana distributes the funds to the State Governments in two payments of 50% each. The provision of funding under the RKVY-RAFTAAR sub-schemes is not based on inter-state allocation criteria. The scheme releases the funds on the basis of the annual plans to different bodies. Such bodies are State Governments, central government institutions, autonomous bodies, national and international institutions. The amount of assistance or funds allocation to the State Governments is determined by the characteristics and weights. The following table shows the characteristics and weights of fund allocation under Rashtriya Krishi Vikas Yojana:

Criteria or Parameters	Weightage
Percentage share of net un-irrigated area in a State to the net unirrigated area of all States.	15%
Percentage of small and marginal farmers in the state compared to total number of small and marginal farmers in the country	20%
Moving averages of the increase in plan expenditure in agriculture & allied sectors including animal husbandry, fisheries etc. in the previous 3 year period.	30%
Average Gross State Value Added (GSVA) in agriculture and allied sectors in the last 3 years	20%
Percentage of youth population in the state compared to total youth in the country.	5%
Inverse of Yield gap between state average yield and potential yields as indicated in the frontline demonstration data.	10%

Area of Focus and Allied Sectors Under RAFTAAR

The Rashtriya Krishi Vikas Yojana focuses on the following agricultural areas. Further,it prescribes for the allied sectors to focus along with the agricultural main areas of focus:

Area of Focus	Allied Sectors
Integrated Development of Food crops, including coarse cereals, minor millets and pulses	Crop Husbandry (including Horticulture)
Agriculture Mechanization	Animal Husbandry, Dairy Development and Fisheries
Soil Health and Productivity	Agricultural Research and Education
Development of Rainfed Farming Systems	Agricultural Marketing
Integrated Pest Management	Food storage and Warehousing
Promoting extension services	Soil and Water Conservation
Horticulture	Agricultural Financial Institutions
Animal Husbandry, Dairying & Fisheries	Other Agriculture Programmes and Cooperation
Sericulture
Study tours of farmers
Organic and Bio-fertilizers
Innovative Schemes

What is an Agri-Business Incubator (R-ABI)?

The Ministry of Agriculture & Farmers Welfare sanctioned the establishment of RKVY- RAFTAAR Agri-Business Incubator (R-ABI) at the Indian Institute of Technology (BHU) Varanasi. By providing financial support and cultivating the incubation ecosystem, this program intends to promote agripreneurship and agribusiness. In 2018-19, this was a new component of the redesigned RKVY-RAFTAAR plan.

Both new and existing incubators will be established and strengthened as R-ABIs. Such establishment will involve a need-based infrastructure, staff, and equipment under this scheme. These incubators will then invite agripreneurs to participate in various stages of the business life cycle. By inviting the agripreneurs the scheme gives them the opportunity to develop agricultural and related services innovations. The innovations can be in the realm of technology, method, products, or services. Such innovations will help in improving agricultural and allied services efficiency.

In 2020-21, the Ministry of Agriculture will fund companies through RKVY’s innovation and agripreneurship component. The companies can belong to diverse industries including agro-processing, digital agriculture, farm machinery, fishery, dairy, artificial intelligence etc.

Benefits of Agri-Business Incubator (R-ABI) RKVY- RAFTAAR

Seed Stage Funding of R-ABI Incubatees

Up to Rs.25 lakhs in funding (85% is a grant and 15% is the contribution from the incubatee). This will be distributed to all R-ABI incubatees. These incubatees must be Indian start-ups with a minimum of two months residency at R-ABI. They must also be registered legal entities in India.

Idea/ Pre-Seed Stage Funding of Agripreneurs

Up to 5 lakhs in funding (90% is a grant and 10% is the contribution from the incubatee). The sharing pattern is 90:10 in the case of northeastern and hilly states. The RKVY-RAFTAAR continues to operate as a Centrally Sponsored Scheme in the ratio 60:40, i.e., the government of India and state share proportionately. The award is 100% as a Central share for UTs.

Agripreneurship Orientation

A two-month orientation program is available, with a monthly stipend of Rs.10,000. The orientation gives guidance on a variety of financial, technological, and other topics.