Paramparagat Krishi Vikas Yojana (PKVY): Nurturing Organic Farming in India

₹31,500 Per Hectare to Farmers: The Promise and Limits of Paramparagat Krishi Vikas Yojana

Since its launch in 2015 under the National Mission for Sustainable Agriculture, the Paramparagat Krishi Vikas Yojana (PKVY) has committed ₹31,500 per hectare for a three-year period to farmers adopting organic farming practices. This figure is part of a broader ambition to make India a major player in organic agriculture, yet it raises crucial questions about scale, efficacy, and institutional design.

A Departure from Conventional Agriculture Funding

The funding model under PKVY breaks from the historical trend of subsidizing chemical fertilizers such as urea and DAP. For decades, India’s agricultural policies have leaned heavily on chemical farming, incentivized by blanket subsidies to lower production costs for conventional farming. Organic farming under PKVY represents a shift towards cluster-based approaches—20-hectare collectives—aimed at reducing costs per farmer while fostering community engagement.

This focus is further reinforced by India’s position as the global leader in the number of farmers practicing organic farming, according to IFOAM Statistics 2022. However, operational roadblocks persist. Unlike states like Madhya Pradesh, which has the largest certified organic area, the fragmented nature of landholding in regions like Uttar Pradesh makes such clusters logistically complex to form. Uniform standards across such diverse agricultural zones remain aspirational rather than achieved.

The Institutional Machinery Behind PKVY

Organic farming certification in India operates through two mechanisms:

• National Programme for Organic Production (NPOP): Overseen by the Ministry of Commerce & Industry, this is a third-party certification focused mainly on exports. The lack of synergy with domestic-oriented farming needs dilutes its relevance for PKVY farmers.
• Participatory Guarantee System for India (PGS-India): Managed under the Ministry of Agriculture & Farmers Welfare, it leverages peer inspections and collective decision-making among farmers. Despite its accessibility, its decentralized approach raises valid concerns over uniformity in certification parameters across states.

The scheme also ties into initiatives like Jaivik Kheti, an online portal facilitating organic produce sales, and the Large Area Certification programme initiated in 2020–21. The latter accelerates certification timelines in regions untouched by chemical farming—tribal belts and islands—highlighting the policy’s attempt to adapt to ecological diversity.

What the Data Actually Says

While the government’s emphasis on PKVY reflects a desire to scale organic farming, hard numbers temper the optimism. India’s organic exports in 2022–23 stood at $708 million—a modest figure against the $138 billion global organic market. Despite good intentions, market integration remains a glaring gap.

Moreover, the ₹31,500 per hectare subsidy, though crucial to offset transition costs, is visibly inadequate. Organic certification and soil building require significant upfront investments, as does marketing infrastructure. State-level disparities further complicate outcomes. Madhya Pradesh, with its 1.8 million hectares of certified organic land, contrasts starkly with states that lack bureaucratic or institutional capacity for organic certification.

Even on environmental grounds, the program’s carbon sequestration claims have yet to be backed by measurable outcomes. India urgently needs independent systems to track the carbon benefits of organic initiatives beyond anecdotal evidence.

The Uncomfortable Questions Nobody Is Asking

Despite the buoyant narrative around PKVY, fundamental gaps demand scrutiny:

Is ₹31,500 sufficient? The subsidy may lower the entry barrier but falls short of covering the full financial implications of transitioning to organic. Training, irrigation, and peer evaluation costs remain unaccounted for.

What about policy coherence? A scheme encouraging organic agriculture runs counter to the recurrent fertilizer subsidies for conventional farming. The competing incentives risk diluting the ethos behind PKVY.

State-level implementation inconsistencies: While Sikkim has achieved 100% organic farming, many states are still navigating certification challenges. Without addressing inter-state disparities, replicability remains impeded.

Market readiness: Domestic consumption patterns heavily favor lower-cost conventional produce. Organic farming can only succeed when matched by consumer education and demand creation.

A Comparative Lens: South Korea's Organic Transition

When South Korea faced similar challenges in scaling organic agriculture in the early 2010s, it tied incentives to institutional reforms. The government mandated organic purchases in public procurement for schools and hospitals, driving consistent demand. India, by contrast, has yet to create policy frameworks linking government procurement schemes (e.g., PDS, MDMS) to PKVY outcomes.

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