In a major policy shift aimed at driving agricultural reforms, the Union Ministry of Agriculture has proposed a significant consolidation of key schemes. The government plans to merge three separate ongoing initiatives into its flagship Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY), creating a powerful umbrella program with a massive outlay of Rs 1.75 lakh crore over five years.
Three Schemes to Converge Under One Umbrella
The restructuring exercise, as reported by The Indian Express, will see the integration of the Krishonnati Yojana (KY), the National Mission on Natural Farming (NMNF), and the National Bee and Honey Mission (NBHM) into the PM-RKVY framework. This move is designed to streamline implementation and boost the growth of the agriculture and allied sectors.
The Krishonnati Yojana focuses on enhancing farmers' income. The National Mission on Natural Farming promotes chemical-free agriculture, while the National Bee and Honey Mission aims to develop apiculture. Currently, PM-RKVY, KY, and NMNF are Centrally Sponsored Schemes implemented by states with joint funding. The NBHM is a Central Sector Scheme, funded and executed by the Union government.
Performance-Linked Funding: A New Reform Push
The most crucial change in the proposed merger is the introduction of a performance-based fund allocation system for states. According to sources, the allocation will be linked to five key parameters, with the highest weightage—30 per cent—assigned to a new criterion: "assessment based on reform initiative and milestones achieved by the state."
This parameter did not exist in the previous PM-RKVY guidelines of 2024, which allocated funds based on factors like un-irrigated area and the population of small farmers and youth. The new approach aligns with NITI Aayog's recommendations and revives the 15th Finance Commission's idea of using financial incentives to encourage state-level agriculture reforms.
Implementation Timeline and Financial Structure
The proposed umbrella scheme is slated for implementation over the 16th Finance Commission cycle, from April 2026 to March 2031. The funding pattern will follow the standard Centre-state ratios: 60:40 for most states, 90:10 for Northeastern and Himalayan states, and 100% central funding for Union Territories.
The Ministry has circulated a note on the merger for approval by the Expenditure Finance Committee under the Ministry of Finance. Following this, it will be presented to the Union Cabinet for final clearance.
This consolidation follows recent approvals for the individual schemes. The Union Cabinet had approved the implementation of PM-RKVY and Krishonnati Yojana for 2021-22 to 2025-26 with an outlay of Rs 1.01 lakh crore in October 2024. The NMNF was approved in November 2024 with Rs 2,481 crore until March 2026, and the NBHM got the nod in September 2023 with Rs 370 crore for three years till 2025-26.
The original Rashtriya Krishi Vikas Yojana was launched in 2007 as a flexible scheme for the holistic development of agriculture, allowing states to choose activities based on their district and state agriculture plans. The latest merger and reform-linked funding model mark a significant evolution in this long-running national initiative.
