Scheme Consolidation Unveiled
The Union Ministry of Agriculture is proposing a significant transformation by merging several agricultural schemes with the flagship Pradhan Mantri-Rashtriya
Krishi Vikas Yojana (PM-RKVY). This strategic move aims to streamline efforts and boost farmers’ income, with an impressive outlay of Rs 1.75 lakh crore earmarked for the next five years. The schemes slated for integration include Krishonnati Yojana, the National Mission on Natural Farming (NMNF), and the National Bee and Honey Mission (NBHM). This restructuring initiative aligns with recommendations from NITI Aayog, focusing on incentivizing states to implement agricultural reforms. The proposed umbrella scheme is slated for implementation during the 16th Finance Commission cycle, spanning from April 2026 to March 2031, with a funding arrangement structured to benefit both central and state governments.
Merger Scheme Overview
The schemes targeted for consolidation include Krishonnati Yojana, aimed at increasing farmers' income; the National Mission on Natural Farming (NMNF), which promotes sustainable agricultural practices; and the National Bee and Honey Mission (NBHM), focused on enhancing honey production. The PM-RKVY, initially launched in 2007 as the Rashtriya Krishi Vikas Yojana, has been an “umbrella scheme” to facilitate the holistic development of agriculture and associated sectors, empowering states to devise their own developmental activities. The Union Cabinet had already approved the implementation of PM-RKVY and Krishonnati Yojana for the period between 2021-22 and 2025-26, with an outlay of Rs 1.01 lakh crore in October 2024. Furthermore, the NMNF was approved in November 2024, with a budget of Rs 2,481 crore until March 2026. The NBHM was approved in September 2023, with Rs 370 crore allocated for three financial years, concluding in 2025-26. This merging initiative is anticipated to provide a more cohesive and impactful approach to agricultural development.
Fund Allocation Dynamics
A pivotal aspect of this merger is the proposed restructuring of fund allocation to states, which will now be linked to five key parameters. Notably, the allocation process will give maximum weightage, accounting for 30%, to an “assessment based on reform initiatives and milestones achieved by the state.” This particular parameter marks a significant shift from the previous guidelines. The existing PM-RKVY guidelines, implemented in 2024, consider factors like the percentage share of net un-irrigated area in a state compared to all states, the proportion of small and marginal farmers in a state relative to the national figures, and the proportion of the youth population in a state. The overarching aim of the revised funding criteria is to incentivize states to adopt and execute substantial agricultural reforms, ensuring that financial support is aligned with performance and developmental achievements. The allocation framework will be implemented in a ratio of 60:40 for most states, with 90:10 for the Northeastern and Himalayan regions, and 100% for Union Territories.
