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Maarg Manthan · Topic 3.5

Rashtriya Krishi Vikas Yojana (RKVY)

Current Affairs & Government Schemes › Agriculture and Farmer Welfare Schemes · Topic 3.5

The Rashtriya Krishi Vikas Yojana (RKVY) is a scheme of the Ministry of Agriculture and Farmers Welfare, launched in 2007-08 during the 11th Five Year Plan to give states additional central grants so that they raise public investment in agriculture and allied sectors and move towards a 4 per cent annual growth target. It was restructured in 2017-18 as RKVY-RAFTAAR for remunerative approaches, and from 2022-23 became the Pradhan Mantri Rashtriya Krishi Vikas Yojana, a flexible cafeteria scheme. In October 2024 the Cabinet merged related schemes into PM-RKVY and Krishonnati Yojana with about Rs 1 lakh crore.

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Rashtriya Krishi Vikas Yojana (RKVY) - Current Affairs & Government Schemes - MaargX UPSC Maarg Manthan

At a Glance

  • Launch 2007-08, 11th Five Year Plan
  • Ministry Agriculture and Farmers Welfare
  • Aim Boost state agriculture spending, 4 per cent growth
  • Phases RKVY, RKVY-RAFTAAR (2017), PM-RKVY (2022)
  • Latest PM-RKVY and Krishonnati Yojana, about Rs 1 lakh crore (Oct 2024, as reported)
  • Exam link UPSC Prelims, Current Affairs and Government Schemes: Agriculture and Farmer Welfare Schemes

Where Does It Fit?

This is the fifth topic of the macro on agriculture and farmer welfare. It is the main channel through which the Centre funds state agriculture priorities. The Soil Health Card now sits in it, as in Soil Health Card Scheme (Government Scheme Profile), and several irrigation and organic schemes work in parallel, as in Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). Previous topic: Paramparagat Krishi Vikas Yojana (PKVY). Next topic: e-NAM (National Agriculture Market).

How Has RKVY Changed Over Time?

Phase Main feature
RKVY (2007-08) A state plan scheme that gave 100 per cent central grants to states that kept up or raised their own agriculture spending. States prepared a State Agriculture Plan and District Agriculture Plans
Aim To achieve 4 per cent annual growth in agriculture and allied sectors during the 11th Plan by raising public investment
RKVY-RAFTAAR (2017-18) Remunerative Approaches for Agriculture and Allied sector Rejuvenation. It had a focus on infrastructure and assets, value chains, innovation and agri-startups
Funding in RAFTAAR Sharing of 60:40 with states, 90:10 for north-eastern and Himalayan states, and a focus on bottom up planning
PM-RKVY (2022-23) Renamed the Pradhan Mantri Rashtriya Krishi Vikas Yojana, with a cafeteria structure that let states choose from a list of components, including Soil Health and Fertility
2024 restructuring In October 2024 the Cabinet approved two umbrella schemes, PM-RKVY and Krishonnati Yojana, with a combined outlay of about Rs 1.01 lakh crore, as reported, by regrouping several earlier schemes

What Are the Special Features of RKVY?

  • Incentive to states: grants depended on states keeping their agriculture share of the budget, which made it a reform linked grant
  • State Agriculture Plan: a plan based on district plans that covers agriculture, animal husbandry, fisheries and related fields
  • Flexibility: states could choose projects as per their needs, which was seen as a break from top down schemes
  • Cafeteria scheme: from 2022-23 states pick from a menu of components and spend on the ones with local priority
  • Components: agri infrastructure, crop diversification, natural resource management, Soil Health and Fertility and agri-startups
  • Allied sectors: dairy, fisheries and animal husbandry were covered in the early phases, and are now handled through separate schemes
  • Agri-startups: RAFTAAR supported agri business incubators and start-ups with seed funds and training
  • Monitoring: reporting on a portal and by the state level sanctioning committee led by the Chief Secretary

What Else Should You Remember?

  • Full name: RKVY stands for Rashtriya Krishi Vikas Yojana, the National Agriculture Development Scheme of the Ministry of Agriculture and Farmers Welfare
  • Reason: Agriculture is a State subject, and states had cut investment in the sector, so the Centre used grants to push them
  • Planning Commission: The scheme was designed by the Planning Commission of the 11th Plan on the advice of the National Development Council, which set the 4 per cent goal
  • Link to Krishonnati: Krishonnati Yojana covers crop related missions, such as seeds, mechanisation and oilseeds, that were earlier run separately
  • Merged items: The 2024 restructuring brought schemes such as the Sub-Mission on Agricultural Mechanisation and the National Food Security Mission under umbrella heads, as reported
  • Soil link: Soil Health and Fertility became a component of PM-RKVY from 2022-23
  • Evidence: Evaluations praised the flexibility but criticised uneven state spending, scattered small projects and weak outcome tracking
  • Centre-State angle: RKVY is an example of cooperative federalism through conditional grants, though critics say it narrows state choice
  • Fiscal: Funds are provided to states in instalments tied to utilisation certificates
  • Exam trap: RKVY is a state oriented scheme and not a direct farmer income scheme like PM-KISAN
  • Link: For direct farmer income, see PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)

Why Does It Matter for the Exam?

  1. Launch: 2007-08, 11th Five Year Plan
  2. Target: 4 per cent growth in agriculture
  3. Phases: RKVY, RKVY-RAFTAAR, PM-RKVY
  4. Style: bottom up planning and cafeteria
  5. Latest: 2024 umbrella schemes with about Rs 1 lakh crore

As an analytical point, grants that reward states for spending on agriculture can raise investment, but too many small schemes dilute results. A cafeteria design gives local choice and needs strong outcome tracking. Bigger, fewer projects with clear targets would help.

Why Is This Topic Important?

  • Federalism State grants for agriculture
  • Phases Names and years
  • Merger Umbrella schemes

What Came Next?

The next topic covers the electronic trading platform that links farmers to markets. Next topic: e-NAM (National Agriculture Market).

Key People and Terms

  • RAFTAAR Remunerative Approaches for Agriculture and Allied sector Rejuvenation
  • SAP State Agriculture Plan
  • Cafeteria scheme Menu of components
  • Krishonnati Agricultural advancement scheme
  • Allied sector Dairy, fisheries and livestock
  • DAP District Agriculture Plan

Exam Corner

Points to Remember

  • Launched in 2007-08; target 4 per cent growth.
  • RAFTAAR from 2017-18.
  • PM-RKVY cafeteria scheme from 2022-23.
  • Soil Health and Fertility is a component.
  • Oct 2024: PM-RKVY and Krishonnati Yojana.

Do Not Confuse With

  • RKVY and PM-KISAN State grants versus direct farmer income support
  • RKVY and Krishonnati Flexible state plan scheme versus crop mission umbrella
  • RKVY and PMKSY Agriculture development versus irrigation

Memory Hook

Plan in the district, spend in the state, choose from the menu, aim for four.

Mains Angle

Questions ask about Centre-State cooperation in agriculture. These points give a balanced frame.

  • Merits Flexible, state led, reform linked
  • Demerits Scattered projects, uneven tracking
  • Way ahead Fewer larger projects, outcome focus

A Question You May Face

An original practice question, not a past paper question.

“Discuss how the Rashtriya Krishi Vikas Yojana reflects cooperative federalism in agriculture and its limitations.”

How to Answer

  1. Intro Scheme of 2007.
  2. Federal logic Incentive and flexibility.
  3. Limits Scatter and tracking.
  4. Way Focus on outcomes.

GS Relevance

Prelims: launch, 4 per cent target, RAFTAAR, cafeteria scheme. GS Paper 3: agriculture investment, state role and agriculture schemes. GS Paper 2: Centre-State relations in schemes.

Frequently Asked Questions

What is RKVY?

The Rashtriya Krishi Vikas Yojana is a scheme of the Ministry of Agriculture and Farmers Welfare launched in 2007-08 to give states central grants so that they invest more in agriculture and allied sectors. It aims at a 4 per cent annual growth target and works through State and District Agriculture Plans.

What is RKVY-RAFTAAR?

RKVY-RAFTAAR stands for Remunerative Approaches for Agriculture and Allied sector Rejuvenation. It was the restructured form of RKVY from 2017-18, with a focus on infrastructure, value chains, innovation and agri-startups, and with a funding split of 60:40 between the Centre and states, or 90:10 for north-eastern and Himalayan states.

What is PM-RKVY?

PM-RKVY is the Pradhan Mantri Rashtriya Krishi Vikas Yojana, the name given to the scheme from 2022-23. It is a cafeteria scheme in which states choose from a menu of components such as agri infrastructure, crop diversification, natural resource management and Soil Health and Fertility, according to local needs.

Which ministry runs RKVY?

RKVY is run by the Department of Agriculture and Farmers Welfare under the Ministry of Agriculture and Farmers Welfare. States prepare plans, a state level sanctioning committee led by the Chief Secretary approves projects and the Centre releases funds in instalments linked to utilisation of the earlier release.

What is the latest status of RKVY?

In October 2024 the Cabinet approved two umbrella schemes, PM-RKVY and Krishonnati Yojana, with a combined outlay of about Rs 1.01 lakh crore, as reported, by merging several earlier schemes. A fresh cycle in line with the 16th Finance Commission period is being followed in budgets, so check official figures.

PYQ Practice — Statement Analysis

1 RKVY was launched in the 11th Five Year Plan.
True

In 2007-08.

2 RKVY aims to give direct income support to farmers.
False

It gives grants to states. PM-KISAN gives direct income support.

3 RAFTAAR stands for Remunerative Approaches for Agriculture and Allied sector Rejuvenation.
True

From 2017-18.

4 RKVY aimed at a 4 per cent growth target for agriculture.
True

By raising state investment.

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