Govt to Merge Agricultural Schemes, Link Funds to State Reforms

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.

Source: IE