CA Topic

Govt to Merge Agricultural Schemes, Link Funds to State Reforms

January 12, 2026 en

Brief Context

Context The Union Ministry of Agriculture has proposed to merge three separate ongoing schemes with its flagship Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY). About The schemes to be merged with PM-RKVY are Krishonnati Yojana (KY) to boost farmers’ income, National Mission on Natural Farming (NMNF) and National Bee and Honey Mission (NBHM). PM-RKVY, KY and NMNF are Centrally sponsored with implementation done by the state governments using funds jointly provided by both, while NBHM is

Source Content

Syllabus: GS3/Agriculture

Context

The Union Ministry of Agriculture has proposed to merge three separate ongoing schemes with its flagship Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY).

About

The schemes to be merged with PM-RKVY are Krishonnati Yojana (KY) to boost farmers’ income, National Mission on Natural Farming (NMNF) and National Bee and Honey Mission (NBHM).
- PM-RKVY, KY and NMNF are Centrally sponsored with implementation done by the state governments using funds jointly provided by both, while NBHM is a Central sector scheme that is funded and implemented by the Centre.

Time Period: To be implemented over the next five years during the 16th Finance Commission cycle beginning April 2026 and ending March 2031.
Fund Allocation: It will be funded in the Centre-state ratio of 60:40 for most states, 90:10 for the Northeastern and Himalayan states, and 100% for Union Territories.
The proposed merger is in line with the NITI Aayog’s recommendations.
- The Aayog had earlier revived the 15th Finance Commission’s idea of providing performance-based financial incentives to states to encourage them to implement agriculture reforms.
Parameters for Allocation: The allocation of funds to states will be linked to five key parameters, with maximum weightage (30%) proposed for “assessment based on reform initiative and milestones achieved by the state”.
Rationale Behind the Merger: The merger aims to reduce fragmentation of schemes, improve administrative efficiency, and ensure better targeting of resources.
- Linking funds to reform performance is intended to encourage states to adopt structural and sustainable agricultural reforms, including natural farming and diversification.

Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY)

– It was initiated in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sectors.
– Ministry: Ministry of Agriculture & Farmers Welfare.
– It allows states to choose their own agriculture and allied sector development activities as per the district/state agriculture plan.
– Funding: Ratio of 60:40 between Centre and States (90:10 for North Eastern States and Himalayan States).
a. For Union Territories the funding pattern is 100 % central grant.
– Objective: RKVY scheme incentivizes States to increase public investment in Agriculture & allied sectors.
– Implementation:
a. States have been provided flexibility and autonomy for selection, planning approval and execution of projects/programs under the scheme as per their need, priorities and agro-climate requirements.
b. The funds are released to the State Governments/UTs on the basis of projects approved in the State Level Sanctioning Committee Meeting (SLSC) headed by the Chief Secretary of the concerned State.

Source: IE