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Rashtriya Krishi Vikas Yojana (RKVY)

Rashtriya Krishi Vikas Yojana (RKVY)

Rashtriya Krishi Vikas Yojana (RKVY)

National Development Council (NDC) of India launched Rashtriya Krishi Vikas Yojana (RMKY) in the year 2007. RMKY is a special Additional Central Assistance Scheme under National Agricultural Development Programme. The key objective of RMKY is to resolve agricultural development strategies and to meet needs of farmers. This article examines about Rashtriya Krishi Vikas Yojana (RMKY) in detail.

Rashtriya Krishi Vikas Yojana (RKVY)

The Rashtriya Krishi Vikas Yojana (RKVY) is a continuing scheme under implementation from the 11th Five Year Plan period of National Development Council (NDC). The scheme will incentivize States in enhancing more allocation to Agriculture and Allied Sectors.  The following area should be focused while developing plans for agricultural in a state using RKVY funds.

  • Agro-climatic conditions
  • Natural resource issues
  • Technology in agricultural
  • Livestock development
  • Poultry Integration
  • Fisheries department programmes

Objective of RKVY

The main objectives of Rashtriya Krishi Vikas Yojana (RKVY) are given here.

  • To increase State Government public investment in Agriculture and allied sectors by providing additional incentive to states.
  • RKVY aims to provide flexibility and autonomy to the states in India for planning and executing agriculture programmes
  • To assure the preparation of Agriculture plans for district and states.
  • To ensure the agricultural plans are based on agro-climatic conditions, technology and natural sources
  • To check whether the agricultural plans in the states are focused on local needs, crops and priorities
  • To reduce the yield gaps in important crops in the state.
  • To maximize returns to the state farmers in Agricultural and allied sectors.
  • To make quantifiable changes in the production in Agricultural and allied sectors.

Allied Sectors under RKVY

The following allied sectors are covered under RKVY.

  • Crop Husbandry
  • Horticulture
  • Crop Husbandry
  • Fisheries
  • Dairy Development
  • Agricultural Research and Education
  • Forestry and Wildlife Plantation
  • Agricultural Marketing
  • Food Storage
  • Warehousing
  • Soil and Water Conservation
  • Agricultural Financial Institution
  • Irrigation Activities

Eligibility Criteria for RKVY Allocation

For a state to become eligible for RKVY allocation, average percentage of share of expenditure in agriculture and allied industry during last 3 years should be at least at baseline and State Agricultural Plans should be formulated.

RKVY funds Allocations to States

Once a state is eligible under RKVY, the process of allocation of RKVY will be as follows:

RKVY annual outlay will depend on State Budget for Agricultural and allied industries. Interstate allocation of RKVY funds will be based on the following criteria and percentages.





Percentage share of net unirrigated area in a state to the net unirrigated area of all eligible stated



Average area under oil seeds and pulses for last 3years



Last 5 years states highest GSDP



Increase in Agricultural expenditure in the previous over the year prior to that year.



Increase in expenditure in Animal Husbandry, Fisheries, Agricultural Research and education in agriculture in the previous over the year prior to that year.



Increase of yield gap between State average yield and Potential Yield


RKVY funds will be released to the state government in two instalments (50% each). Final instalments will be made after providing 100% utilization certificate.

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

Aim of NDC during the 11th plan was to achieve 4% annual growth in agricultural and allied sectors. The agriculture and allied sectors grew at 3.64 % annually during the 11th Plan as against 2.46 % per annum in the 10th Plan.

Agricultural development during 11th plan

During the 11th Plan of NDC, 5768 projects have been taken up by states out of which 3228 projects have been completed. The following sectors grew during 11th plan.

  • Crop development
  • Horticulture
  • Agricultural mechanisation
  • Marketing and post-harvest management
  • Animal husbandry
  • Dairy development
  • Fisheries
  • Extension

RKVY – 12th Five Year Plan (2012 – 2013 to 2016-2017)

The annual outlay for Rashtriya Krishi Vikas Yojana (RKVY) during 12th Plan was about Rs.63246 crore

  • 35% annual outlay for Production Growth projects in agriculture and allied sectors
  • 35 % annual outlay for reduce gaps in agricultural infrastructure and assets
  • 20% annual outlay for funds focused on national priorities
  • 10 % annual outlay as RKVY flexi funds for specific needs/priorities in states

Agriculture and allied sectors grew in 2006 -2007 is 4.88%. 2011 -2012 is 6.04% & in 2011 to 212 is 6.33%

RAFTAAR – RKVY 13th Three Year Plan (2017-2018 to 2019-2020)

Government of India made changes in RKVY to make farming as a remunerative profession. During 13th plan the RKVY has been rebranded as RKVY-Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RAFTAAR).

Objective of RAFTAAR

The objective of RAFTAAR is to make farming as a remunerative profession by focusing following items.

  • Strengthening Farmer’s effort
  • Risk mitigation
  • Promoting agri­business entrepreneurship

RKVY – RAFTAAR Area of focusing

Along with RKVY focus areas few areas also included in RAFTAAR. New area of focus are listed below.

  • Value chain
  • Post-harvest infrastructure
  • Agri- entrepreneur development

RKVY – RAFTAAR Annual Allocation

Budget allocation for RAFTAAR is Rs 15,722 crore. RKVY-RAFTAAR funds would be provided to the States as 60:40 and 90:10 for North Eastern States and Himalayan States.

RKVY-RAFTAAR with 70% of annual outlay allocated for Infrastructure & Assets and Production Growth by following activities.

  • 50% of annual outlay for Infrastructure and assets
  • 30% of annual outlay for value addition linked production projects
  • 20% of annual outlay as Flexi funds for local needs in State

RKVY-RAFTAAR with 20% of annual outlay for special sub-schemes of National priorities

RKVY-RAFTAAR with 10% (including 2% of administrative costs) of annual outlay for innovation and Agri-entrepreneur development.