Rashtriya Krishi Vikas Yojana (RKVY)

The National Development Council (NDC) of India launched the Rashtriya Krishi Vikas Yojana (RKVY) in 2007, as a significant step under the National Agricultural Development Programme. This scheme, also known as the Rashtriya Krishi Vikas Yojana (RKVY), is an Additional Central Assistance Scheme aimed at addressing agricultural strategies and meeting the needs of farmers. This article provides a comprehensive examination of the RKVY.

Objectives of RKVY

The primary objectives of the RKVY are:

Increase public investment in agriculture and allied sectors by incentivizing states.
Provide flexibility and autonomy to Indian states for planning and executing agriculture programs.
Ensure the preparation of agriculture plans based on agro-climatic conditions, technology, and natural resources.
Focus agricultural plans on local needs, crops, and priorities, thereby reducing yield gaps.
Maximize returns to the state farmers and implement quantifiable changes in agricultural production.

Allied Sectors under RKVY

Several allied sectors benefit from the RKVY fund allocation:

Crop Husbandry
Horticulture and fisheries programs
Dairy Development and Livestock programs
Agricultural Research, Education, and Marketing
Forestry and Wildlife Plantation
Soil and Water Conservation
Irrigation Activities and Agricultural Financial Institutions

Eligibility Criteria and Fund Allocation

For a state to be eligible for RKVY fund allocation, the average percentage share of expenditure in agriculture over the past three years should meet the baseline criteria, and State Agricultural Plans must be formulated. The allocation process involves:

Depending on the State Budget for Agriculture, with allocations determined by multiple factors such as the state's net unirrigated area and agricultural expenditure growth.

S.No	Criteria	Percentage
1	Percentage share of net unirrigated area in a state relative to all eligible states.	15%
2	Average area under oilseeds and pulses for the last three years.	5%
3	Last five years' highest Gross State Domestic Product (GSDP).	30%
4	Increase in Agricultural expenditure in the previous year over the preceding year.	30%
5	Increase in expenditure in Animal Husbandry, Fisheries, and Agricultural Research.	10%
6	Yield gap increase between State average yield and Potential yield.	10%

The RKVY funds are released in two installments, each covering 50% of the allocated amount. The final installment requires a 100% utilization certificate.

RKVY in the 11th Five Year Plan (2007–2012)

During the 11th Plan, the NDC aimed for a 4% annual growth in agriculture and allied sectors, achieving 3.64% annually compared to 2.46% in the previous plan. Significant projects included:

Crop development through modern agricultural methods
Improvements in horticulture and mechanization, enhancing marketing and post-harvest management
Development in animal husbandry and dairy sectors
Advancements in fisheries and extension services

RKVY in the 12th Five Year Plan (2012–2017)

The 12th Plan had an annual outlay of Rs. 63,246 crore for RKVY, aiming to boost production growth and reduce infrastructure gaps. The allocation was split as follows:

35% for production growth in agriculture and allied sectors
35% to reduce infrastructure and asset gaps
20% for national priority funds
10% as RKVY flexi funds for state-specific needs

Growth in agriculture and allied sectors was notable during this period, with improvements recorded from 4.88% in 2006-2007 to 6.33% in 2011-2012.

RAFTAAR: RKVY in the 13th Plan (2017–2020)

The Indian Government revamped RKVY in the 13th Three Year Plan to RKVY-RAFTAAR (RKVY-Remunerative Approaches for Agriculture and Allied Sector Rejuvenation). It focuses on making farming a remunerative profession by:

Strengthening farmers' efforts
Mitigating risks and promoting agribusiness entrepreneurship

RKVY-RAFTAAR Areas of Focus

Along with RKVY areas, the RAFTAAR approach includes:

Enhancement of value chains and post-harvest infrastructure
Development of agri-entrepreneurs

RKVY-RAFTAAR Annual Allocation

The budget allocation for RAFTAAR is Rs 15,722 crore. Funds are provided to states using a 60:40 ratio, and a 90:10 ratio for North Eastern and Himalayan states. The allocation comprises:

50% for infrastructure and assets
30% for value addition linked production projects
20% for flexi funds catering to local state needs

A further 20% is reserved for national priorities, while 10% covers innovation and agri-entrepreneur development, including administrative costs.

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Frequently Asked Questions

Common questions about Rashtriya Krishi Vikas Yojana: Agricultural Growth Scheme.

Rashtriya Krishi Vikas Yojana (RKVY) is a continuing scheme launched by the National Development Council (NDC) of India during the 11th Five Year Plan period. It aims to incentivize states to increase their investment in agriculture and allied sectors by providing additional central assistance.

The main objectives of RKVY are to incentivize state governments to allocate more funds for agriculture and allied sectors, ensure agricultural plans are based on local needs and priorities, reduce yield gaps in important crops, maximize returns for farmers, and bring quantifiable changes in production.

RKVY covers various allied sectors such as crop husbandry, horticulture, fisheries, dairy development, agricultural research and education, forestry and wildlife, plantation, agricultural marketing, food storage and warehousing, soil and water conservation, and agricultural financial institutions.

RKVY funds are allocated to states based on criteria such as the percentage share of net unirrigated area, area under oilseeds and pulses, state's GSDP, increase in agricultural expenditure, increase in expenditure on animal husbandry, fisheries, and agricultural research, and the yield gap between state average and potential yield.

During the 11th Five Year Plan, 5768 projects were taken up by states under RKVY, out of which 3228 projects were completed. Sectors like crop development, horticulture, agricultural mechanization, marketing and post-harvest management, animal husbandry, dairy development, fisheries, and extension saw significant growth.

RAFTAAR (Remunerative Approaches for Agriculture and Allied sector Rejuvenation) is the rebranded version of RKVY introduced during the 13th Three Year Plan (2017-2018 to 2019-2020). Its objective is to make farming a remunerative profession by focusing on strengthening farmers' efforts, risk mitigation, and promoting agri-business entrepreneurship.

In addition to the existing RKVY focus areas, RAFTAAR also emphasizes value chain, post-harvest infrastructure, and agri-entrepreneur development.

The annual budget allocation for RAFTAAR is Rs. 15,722 crore. Out of this, 70% is allocated for infrastructure and assets (50%) and value addition linked production projects (30%), 20% for special sub-schemes of national priorities, and 10% for innovation and agri-entrepreneur development.

RAFTAAR funds are provided to states in the ratio of 60:40 for general states and 90:10 for North Eastern and Himalayan states.

RKVY/RAFTAAR aims to benefit the agriculture sector by increasing public investment, addressing local needs and priorities, reducing yield gaps, maximizing returns for farmers, promoting agri-entrepreneurship, and bringing quantifiable changes in production and productivity through focused interventions and initiatives.