Rashtriya Krishi Vikas Yojana (RKVY) – Government Scheme for Agriculture

• Rashtriya Krishi Vikas Yojana (RKVY) is a government scheme launched in 2007 to improve agriculture by encouraging states to invest more in this sector.
• In 2017, it was restructured as RKVY-RAFTAAR to focus on modern farming, entrepreneurship, and local agricultural needs.
• The scheme supports farmers through infrastructure development, crop diversification, agri-startups, and soil-water conservation efforts.

You are a small farmer in a remote Indian village. Your income depends entirely on crops, but you struggle due to poor irrigation, old seeds, and no access to modern tools. One day, you hear about a scheme that can help you upgrade your farming—from better seeds to modern equipment—all backed by government support. That scheme is Rashtriya Krishi Vikas Yojana, which we will discuss here in detail.

Rashtriya Krishi Vikas Yojana (RKVY) is a central government sponsored scheme initiated in 2007 by the Government of India to promote holistic development in agriculture and allied sectors. It incentivises states to boost public agricultural investment to make farming a remunerative economic activity.In 2017, it was restructured as RKVY-RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation) to focus on risk mitigation, strengthening farmers' efforts, and promoting agri-business entrepreneurship. The scheme allows states to tailor agricultural strategies based on their specific needs, addressing challenges like climate resilience and value chain development.

Here are the objectives of the RKVY subsidy scheme :

• Encourage states to enhance public investment in agriculture and allied sectors.
• Provide states with flexibility and autonomy to design and implement agricultural programs based on local needs.
• Promote farming as a remunerative economic activity by strengthening farmers' efforts and mitigating risks.
• Support agri-business entrepreneurship through the creation of infrastructure and value chain development.
• Reduce yield gaps in key crops through targeted interventions and innovative practices.
• Empower youth with skill development, innovation, and agri-business opportunities.
• Facilitate decentralised planning through State Agriculture Plans (SAPs) and District Agriculture Plans (DAPs).
• Enhance farmers' income by promoting productivity, value addition, and diversified farming practices like mushroom cultivation and floriculture.

Also Read: Taxability of Agriculture Income: Explained

The key features of the RKVY Scheme are:

Funding Pattern

The funding structure under RKVY varies by region. For hilly and northeastern states, the central government provides 90% of the funding, while the state government provides the remaining 10%. In other states, the funding is shared in a 60:40 ratio between the central and state governments. For Union Territories, the central government covers the entire cost.

Focus on Infrastructure Development

RKVY focuses on developing pre- and post-harvest agricultural infrastructure. This includes storage, processing, and marketing facilities, which help farmers access quality inputs and make informed decisions. The scheme also supports developing irrigation systems and mechanisation to improve productivity.

Promotion of Agripreneurship

The scheme encourages agripreneurship by encouraging innovation and skill development. It supports agribusiness models that attract youth to agriculture and provides financial assistance for startups in the agricultural sector. This initiative aims to modernise farming practices and make agriculture a lucrative career option.

Soil and Water Conservation

RKVY includes components like soil health management and rainfed area development to ensure the sustainable use of natural resources. These measures help maintain soil fertility and optimise water usage.

Crop Diversification and Value Addition

The scheme promotes crop diversification to reduce dependency on traditional crops and encourages the cultivation of high-value crops. It also supports value chain development to help farmers process and market their produce effectively and increase their income.

Inclusion of Marginalised Groups

Special attention is given to small and marginal farmers, Scheduled Castes, Scheduled Tribes, and women. The scheme offers adequate coverage to these groups to support inclusive growth in the agricultural sector.

State-Level Implementation

The RKVY is implemented under the supervision of the State Level Sanctioning Committee (SLSC), which the chief secretary of the respective state chairs. Funds are allocated based on projects approved by the SLSC to ensure the initiatives align with local priorities and requirements.

Integration with Other Schemes

RKVY complements other government schemes, such as the National Rural Employment Guarantee Scheme (NREGS).

The Agri-Entrepreneurship programme under RKVY is an initiative by the Department of Agriculture & Farmers’ Welfare (DA&FW), Government of India. Here are the details:

• Financial Support : Provides grants-in-aid of ₹5 lakhs for idea/pre-seed stage startups and ₹25 lakhs for seed stage startups.
• Focus Areas : Includes precision agriculture, farm mechanisation, post-harvest technology, food processing, supply chain management, organic farming, and allied sectors.
• Impact : Over 1,500 agri-startups have been supported, fostering innovation and entrepreneurship in agriculture.
• Knowledge Partners and Incubators : Five Knowledge Partners and twenty-four Agribusiness Incubators have been appointed to implement the programme and provide incubation support.
• Funding : A total of ₹822.34 crore has been allocated for the programme from 2018-19 to 2023-24, with ₹215.42 crore released as of March 2024.
• Startup Support : 1,554 agri-startups have received technical and financial assistance, with ₹111.57 crore disbursed as grants-in-aid.

Some of the businesses that qualify for the RKV scheme are:

• Agricultural marketing.
• Soil and water conservation.
• Animal husbandry.
• Other agriculture programmes and cooperation.
• Agricultural financial institutions.
• Fisheries.
• Food storage and warehousing.
• Horticulture.
• Dairy development
• Agricultural research and education.
• Crop husbandry.

Certain projects are deemed ineligible for funding under the RKVY. These include:

• Activities that do not directly contribute to developing agriculture and allied sectors are excluded.
• Proposals that overlap with existing schemes or projects funded by other government programs are not considered.
• Projects unrelated to agriculture, such as urban development or industrial projects, are not eligible.
• Routine administrative costs that do not contribute to the objectives of RKVY are excluded.

Here are what documents required to apply for this scheme:

• Quarterly performance reports detailing physical and financial achievements and outcomes within the given time frame.
• 100% utilisation certificates for the funds allotted up to the previous financial year.
• Detailed project reports (DPRs) or proposals for the activities planned under the scheme.
• Documents outlining the agricultural plans at the state and district levels.
• Records of expenditure and budget allocation for the proposed projects.
• Sanction letters or approvals from the SLSC
• Bank account details for fund transfers.
• Documents like an Aadhaar card or other government-issued ID for verification purposes.

Here is the step guide to applying for RKVY:

• Step 1: If you are an individual farmer, entrepreneur, or organisation, draft a Detailed Project Report (DPR) outlining your project idea. Ensure the DPR includes feasibility studies, expected benefits, implementation timelines, and the competencies of the implementing agency.
• Step 2: Submit your proposal to your state's State-Level Project Screening Committee (SLPSC). Alternatively, you can submit it to the Small Farmers Agri-Business Consortium (SFAC) nationally.
• Step 3: The SLPSC evaluates the proposal and forwards it to the State-Level Sanctioning Committee (SLSC) for approval. For large projects (over ₹25 crore), third-party evaluation and consultation with Central Ministries may be required.
• Step 4: Once the project is approved, agree with the concerned authorities to proceed with implementation.
• Step 5: Begin the project as per the approved plan and adhere to the timelines and guidelines provided.

From improving infrastructure to promoting modern farming and supporting startups, the RKV scheme addresses every significant aspect of agricultural development. With a special focus on marginalised groups, soil conservation, and crop diversification, RKVY aims to make farming more sustainable and profitable. Also Read: Crop Loan: Meaning, Eligibility, Interest Rates & More