RASHTRIYA KRISHI VIKAS YOJANA

 

RASHTRIYA KRISHI VIKAS YOJANA

(RKVY)

By: Anshika Rani

Rashtriya Krishi Vikas Yojana or (RKVY) aka National Agriculture Development Programme was launched as a part of 11th five-year plan on august 2007 by  National Development Council (NDC). The aim of this scheme was to provide overall development of agriculture and its allied sector and obtain gross annual growth of 4% through development of agriculture and its allied sector.

Objectives of RKVY

  • To make agriculture one of the main source of economic activity.
  • To prompt the state that increase its expenditure in agriculture and allied sector with funding.
  • To reduce yield gaps of important crops
  • To maximize return to farmers
  •  To address agriculture and its allied sector in integrated manner
  • To allow states to choose their own activities to develop agriculture and allied sectors based on the needs, priorities, and agriculture plan that suits their district and states.

Features:

  • It is state plan scheme, aka central sector scheme, i.e., it is only implemented by state but funded totally by central govt. (only till 2013-14)
  •  In 2014-15 it was converted into centrally sponsored scheme, and the funding was split as 60:40 b/w central & state govt., except in north-eastern states and hilly areas it is 90:10.
  • For UT funding pattern is 100% central grant.
  • The scheme gives maximum flexibility to states
  •  It integrates agriculture and allied services completely.
  •  Projects with definite time-lines are highly encouraged.

 

▶The eligibility of a state for the RKVY is- the state should maintain or increase the State Plan expenditure for Agricultural and Allied sectors

·    ►If the state lowers its investment in the upcoming years, and is no longer fulfils RKVY eligibility criteria, then the balance resources for completing the projects already commenced would have to be completed by the states.

 

Later, after the 12th year plan the cabinet on 1st November 2017 approved the continuation of scheme by extending it for three years (2017-18 to 2019-20) and renamed it to RKVY-RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation) and allocated an allowance of 15,722 crores.

 

New Objectives:

  • To make farming a profitable by strengthening farmer’s efforts and reducing risks by focusing on pre & post- harvest infrastructure.
  • To encourage & promote Agri-entrepeunership, Agri-innovation, agri-business, Agri- startup and skill development in agriculture and allied sector.
  • To build employment opportunities among youth of rural areas in agriculture
  • To encourage an united approach of research and development (R&D), and technology addition.

Eligibility for RKVY RAFTAAR

  • Any Public funded Academic, R&D institutions, Organizations, State Agriculture University (SAUs)/IITs/IIMs (host institutions) working with Agriculture and Allied sectors are eligible to apply for the scheme. 
  •  The institutions should have a minimum of 5,000 sq.ft builds up space to support Agri-incubation activity. 
 

Key components under RKVY-RAFTAAR scheme:

  • Strengthening of existing agribusiness incubators and starting up of new ones.
  • Seed Stage funding of the same.
  • Agripreneurship orientation
  • Pre-stage funding of Agripreneurs

 

o  ⦿A new component Agri-Business Incubator (R-ABI) was accredited by Agriculture Ministry under RKVY- RAFTAAR in 2018-19 at IIT BHU (Varanasi).

o  ⦿The Ministry of Agriculture is also funding Agri- Startups under the ‘innovation and agriprenurship’ component of RKVY in 2020-21.

 

Ø ►Funds under this scheme would be provided to by central to state as grant under scheme:

1.  Regular RKVY-RAFTAAR- 70% of annual outlay is allocated under:

a)  Infrastructure & Assets- 50% of regular RKVY- RAFTAAR (20% pre harvest + 30% post-harvest)

b) Value addition linked production projects (ABM model) that provide assured or extra income to farmers including PPIAD projects- 30% of regular RKVY- RAFTAAR

c)   Flexi funds-  20% of regular RKVY RAFTAAR, to be used by states as per their local needs

 

2.  RKVY RAFTAAR special sub- scheme- 20% of annual total outlay 
3.  Innovation & Agri- Entrepreneur Development- 10% of total annual outlay for encouraging innovation, startups etc.

These funds stay with central govt. (DAC&FW) including 2% of administrative costs, in case the funds not utilized it’s given diverted to sub special scheme.

 

Drawbacks:

  • As per an audit of RKVY by the Comptroller and Auditor General (CAG) in 2015, there were deficiencies in the preparation of SAP and DAP.
  • These include lack of agroclimatic study, convergence with other schemes, comprehensive project reports and involvement of grassroots agency such as panchayats.
  • Since RKVY-RAFTAAR was continued to for development of modern agriculture sector, the farmers with conventional ways may left behind.
  • The eligibility criteria don’t include farmers directly, so the impact subsequently declines.
  • Also, if the state is not able to keep up with the eligibility criteria after commencement of the project funded by central, it will have to incur the leftover costs (as mentioned under features).

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