Govt to Merge Agricultural Schemes, Link Funds to State Reforms

The Union Ministry of Agriculture has proposed merging multiple agricultural schemes under the Pradhan Mantri–Rashtriya Krishi Vikas Yojana (PM-RKVY) to streamline funding and encourage reforms at the state level.

Schemes to be Merged

The following schemes will be brought under PM-RKVY:

• Krishonnati Yojana (KY): Focuses on boosting farmers’ income
• National Mission on Natural Farming (NMNF): Promotes natural and sustainable farming practices
• National Bee and Honey Mission (NBHM): Supports beekeeping and honey production

Financial Outlay and Duration

• Total proposed outlay: ₹1.75 lakh crore
• Implementation period: 2026–2031
• Corresponds with the 16th Finance Commission cycle

Funding Pattern

• 60:40 Centre–State ratio for most states
• 90:10 for Northeastern and Himalayan states
• 100% Central funding for Union Territories

Key Reform Proposal

For the first time, fund allocation will be linked to state-level reform performance.

• 30% weightage proposed for assessment based on reforms and milestones achieved by states
• This parameter was not present in earlier PM-RKVY guidelines

Existing Allocation Criteria (2024 Guidelines)

Earlier inter-state fund allocation was based on:

• Net un-irrigated area
• Percentage of small and marginal farmers
• Youth population in the state

Role of NITI Aayog

• Proposal aligns with NITI Aayog recommendations
• Revives the idea of performance-based financial incentives for states to push agricultural reforms

Approval Process

• Proposal circulated for approval of the Expenditure Finance Committee (EFC)
• Will be placed before the Union Cabinet after clearance