RKVY Scheme: Boosting Agricultural Development

Agriculture remains an indispensable pillar of the Indian Economy and Society, providing the primary source of livelihood for approximately 50% of the nation’s total population. This industry serves as a significant cultural and economic pillar in addition to providing basic necessities. In order to guarantee long-term, environmentally responsible, and financially feasible growth in this industry, the Indian government launched the Rashtriya Krishi Vikas Yojna (RKVY) during the 2007–08 fiscal year. This plan was designed as a crucial intervention to modernize and revitalize the nation's agriculture and related industries. In order to encourage State Governments to fund the agricultural sectors under its purview, the RKVY was created as a Centrally Sponsored Scheme (CSS).

What is RKVY?

The official website defines the RKVY scheme as, “Rashtriya Krishi Vikas Yojana was initiated in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sectors by allowing states to choose their own agriculture and allied sector development activities as per the district/state agriculture plan.”

A distinguished feature of the RKVY is the autonomy it grants to the States. It empowers them to select and implement their own agriculture and allied sector development activities, provided these activities are meticulously detailed and justified within the DAP (District Agricultural Plan) and the SAP (State Agricultural Plan).

What is RKVY– RAFTAAR?

The RKVY scheme has been strategically enhanced and now is implemented under the name of RKVY–RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation).

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Table of difference between RKVY and RKVY–RAFTAAR

Feature	RKVY (Rashtriya Krishi Vikas Yojna)	RKVY–RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation)
Launch Year	2007-2008	Relaunched after 2017-18 and continued thereafter
Primary Goal	Achieve 4% annual growth by increasing public investment in agriculture	To make farming a remunerative economic activity by strengthening farmer efforts, mitigating risk.
Core Idea	Decentralised Planning	Decentralised Planning with a special focus on Value Chain, Infrastructure, and Agri-Entrepreneurship
Major Focus Area	Includes all farm needs (production, research. And buildings)	Farm buildings, and new business projects
New Ideas/Startups	Could be funded but there is no set rules	10% of the money is officially set aside for funding newer startups

Salient Features

The scheme’s updated version, named RKVY–RAFTAAR, is based on four main principles:

Flexible Spending: States are free to choose to fund projects that need to be done urgently, such as irrigation or water systems, growing various kinds of crops, or bringing in a new farm technology.‍
Various Sectors: The program helps more than just crops, it also aids related and various areas. For instance, in growing fruits or flowers, say, fishing, or even raising animals.
‍Focus on New Technology: Specific money is set to provide to small new companies (agri-startups), or to help like-minded farmers.
‍Local Decision-Making: This program also allows power to the local groups. For example: village level farmers and farmer groups participate in the decision making process for the projects.

To learn about services in the Agricultural Sector under GST, read this.

How is the money handled?

Since this is a jointly funded plan, the central and state government both contribute financially:

For Most states: Central Government pays 60%, State Government pays 40%‍
For Hilly or North Eastern States: Central Government pays 90%, State Government only 10%

The national budget reflects this commitment; for example, close to ₹3,712 crore was set aside for RKVY in 2022-2023 for states to use as their need arose.

Main Areas of Investment

The money is directed into clear investment channels:

Buildings and infrastructures: Funds are used to build central essential things like cold storage rooms or processing units. This helps reduce food spoilage and henceforth, curbs loss.

Learn about how the Food Industry is affected by GST here.

Adds value and Sales: By adding value, the farmers can process and brand their crops (e.g, turning raw fruit into jam). This helps to sell their products at a higher price.
New farming ideas: providing funding to startups and trainers to develop and share new, efficient tools and methods, creating better jobs and higher income in rural areas.

Benefits

The RKVY scheme has fundamentally improved how farm development is planned and executed at the state level. The entire agricultural ecosystem benefits in the following ways, such as:

Improved structures: The funds help rural areas gain new infrastructure like canals or storage units. This reduces food waste and keeps the quality of the crop high.
‍Better crop output: Modern technology produces high quality yields. The improved seeds helps farmers keep their crops resistant to harsh weather climates and increase counts.
‍Farmer’s increased incomes: The plan ensures farmers receive more money for the products they yield. This is ensured by better market connections and focusing on value-adding activities.‍
Technologies: The program supports innovations to agri-startups working on high-tech solutions like organic fertilisers.‍
Local Controls: RKVY Schemes allow states to set their own agricultural direction. This ensures that the funds are used for the most important local needs.

Conclusion

The Rashtriya Krishi Vikash Yojna (RKVY) remains one of the government's most crucial initiatives for strengthening Indian agriculture from the ground up. It does not merely fund projects, but it builds confidence among farmers, institutions and even entrepreneurs who think locally and want to act purposefully.

By providing both financial support and resources and decision making ability, the RKVY ensures the development is not imposed from the top. But cultivated from within. Every state, every farmer and every field becomes part of this story, one where growth is measured in yield as well as resistance.

FAQs

1. What are the RKVY guidelines?

A central program that provides funding to the states is known as the Rashtriya Krishi Vikas Yojna (RKVY). The main investing areas are farming, irrigation and markets that satisfy the local needs first. The objective of it is to help grow more crops and make more money by them.

2. What is the RKVY subsidy scheme?

The Rashtriyaya Krishi Vikaj Yojna is where the government gives financial support to farmers for things like seeds, equipment, or storage. The purpose this serves is that it reduces the cost of investment, encourages modern farming, and helps farmers earn more.

3. Where to apply online for the RKVY scheme?

As the scheme procedure varies by state, the applicants are advised to follow their own state RKVY website to know more. Just google “RKVY Scheme apply only” followed by your state name.

4. How are the RKVY and the RKVY–RAFTAAR schemes different?

RKVY is the earlier version of the scheme that mainly tries to strengthen agriculture by giving states money to improve basic farming needs. RKY-RAFTAAR is the revised version that goes a step further by not only supporting agriculture but also encouraging farmers to increase their income through addition.

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