Relevance: GS III (Agriculture, Centre-State Relations); Source: The Hindu / PIB

Context

To reduce administrative fragmentation, the Union Government has proposed merging major agricultural schemes (like Krishonnati Yojana and Natural Farming Mission) under a single umbrella: PM Rashtriya Krishi Vikas Yojana (PM-RKVY). The overhaul aims to shift focus from “expenditure-driven” to “performance-linked” funding.

Key Reforms (2026–31 Cycle)

1. Umbrella Framework: Multiple fragmented schemes will be consolidated under PM-RKVY to allow States flexibility in choosing components (e.g., Seeds, Soil Health, Mechanization) relevant to their specific agro-climatic zones.
2. Performance-Based Funding:
   • Unlike the current system based on utilization certificates, future fund allocation will depend on a Reform Score.
   • 30% weightage will be given to state-level agricultural reforms (e.g., land leasing, market liberalization).
   • Other criteria: Share of small/marginal farmers and unirrigated area.

Significance

• Competitive Federalism: Incentivizes States to implement difficult structural reforms to access central funds.
• Alignment: The implementation period (2026-31) aligns with the 16th Finance Commission cycle.

UPSC Value Box

UPSC Prelims Practice Question

1. With reference to the ‘Rashtriya Krishi Vikas Yojana (RKVY)’, consider the following statements:

1. It is a Central Sector Scheme fully funded by the Union Government.
2. The scheme mandates States to prepare District Agriculture Plans (DAPs) to access funds.
3. Recent proposals aim to link fund allocation under this scheme to the agricultural reforms undertaken by States.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)

(Explanation: Statement 1 is incorrect. RKVY is a Centrally Sponsored Scheme, meaning costs are shared between Centre and States (usually 60:40). Statements 2 and 3 are correct.)