The Cabinet Committee on Economic Affairs chaired by the Prime
Minister Shri Narendra Modi, has approved the continuation of Rashtriya Krishi Vikas
Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for
Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three years i.e.
2017-18 to 2019-20. The financial allocation of the scheme will be Rs.
15,722 crore with the objective of making farming as a remunerative economic
activity through strengthening the farmer's effort, risk mitigation and
promoting agribusiness entrepreneurship.
RKVY-RAFTAAR funds would
be provided to the States as 60:40 grants between Centre and States (90:10 for
North Eastern States and Himalayan States) through the following streams:
(a)
Regular RKVY-RAFTAAR (Infrastructure
& Assets and Production Growth) with 70%of annual outlay to be allocated to
states as grants based for the following activities:
i. Infrastructure
and assets with 50% of regular RKVY-RAFTAAR outlay.
ii. Value
addition linked production projects with 30% of regular RKVY-RAFTAAR outlay.
iii. Flexi-funds
with 20% of regular RKVY-RAFTAAR outlay. States can use this for supporting any
projects as per the local needs.
(b)
RKVY-RAFTAAR special sub-schemes of National priorities - 20% of annual outlay;
and
(c) Innovation
and agri-entrepreneur development through creating end-to-end solution, skill
development and financial support for setting up the agri-enterprise -10% of
annual outlay including 2% of administrative costs.
The scheme will incentivize States in enhancing more allocation
to Agriculture and Allied Sectors. This will also strengthen farmer’s
efforts through creation of agriculture infrastructure that help in supply of
quality inputs, market facilities etc. This will further promote
agri-entrepreneurship and support business models that maximize returns to farmers.
Background:
Rashtriya Krishi Vikas Yojana
(RKVY) is a continuing scheme under implementation from XI Five Year Plan. The
scheme provides considerable flexibility and autonomy to states in planning and
executing programmes for incentivizing investment in agriculture and allied
sectors. States initiate the process of decentralized planning for agriculture
and allied sectors through preparation of District Agriculture Plans (DAPs) and
State Agriculture Plan (SAP) based on agro-climatic conditions, availability of
appropriate technology and natural resources to ensure accommodation of local
needs, cropping pattern, priorities etc. RKVY has also enabled adoption of
national priorities without affecting the autonomy and flexibility of States
through sub-schemes. National priorities like Bringing Green Revolution
to Eastern India (BGREI), Crop Diversification Program (CDP), Reclamation of
Problem Soil (RPS), Foot & Mouth Disease - Control Program (FMD-CP),
Saffron Mission, Accelerated Fodder Development Programme, etc. are being
implemented through the window of RKVY.
During XI Plan and XII
Plan, States have taken over 13,000 projects in agriculture and allied sector
through State Agriculture Department as Nodal Implementing Agency. The interim
report of RKVY evaluation done by Institute of Economic Growth summarizes that
the income emanating from agriculture measured as the agricultural state
domestic product (AGSDP) is higher in the post-RKVY period than in the pre-RKVY
period. Further, almost all the states registered higher value of output from
agriculture and allied activities in the post-RKVY period. Continuation of
RKVY-RAFTAAR will therefore keep the momentum of agriculture and allied sector
growth.
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AKT/VBA/SH