What's Happening?
The Union Ministry of Agriculture in India has proposed a significant restructuring of its agricultural schemes by merging three existing programs with the Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY). This merger aims to streamline efforts
and enhance the effectiveness of agricultural reforms at the state level. The proposed merger includes the Krishonnati Yojana, National Mission on Natural Farming, and National Bee and Honey Mission, with a combined outlay of Rs 1.75 lakh crore over the next five years. The initiative is designed to link fund allocation to specific performance parameters, with a focus on reform initiatives and milestones achieved by states. The proposal is currently under review by the Expenditure Finance Committee and will be presented to the Union Cabinet for approval.
Why It's Important?
This restructuring is crucial as it aligns with the NITI Aayog's recommendations to incentivize states to implement agricultural reforms. By linking fund allocation to performance metrics, the initiative aims to encourage states to adopt more effective agricultural practices, potentially leading to increased productivity and farmer income. The merger could also streamline administrative processes and reduce redundancy, allowing for more efficient use of resources. This move is expected to have a significant impact on the agricultural sector, which is a vital part of India's economy, affecting millions of farmers and related industries.
What's Next?
If approved, the merged scheme will be implemented over the next five years, starting from April 2026. The funding will be distributed based on a 60:40 ratio between the Centre and most states, with special provisions for Northeastern and Himalayan states. The focus on performance-based incentives is likely to drive states to prioritize agricultural reforms, potentially leading to innovative practices and improved outcomes in the sector. The success of this initiative will depend on the effective implementation and monitoring of the proposed parameters.
