Budget 2024: Govt may increase Rashtriya Krishi Vikas Yojana outlay by 10% to ₹8,308 crore

New Delhi: The union government may increase the outlay for the Rashtriya Krishi Vikas Yojana (RKVY) for FY25 by about 10% to ₹8,308.3 crore in the upcoming budget, two people aware of the development said.

The RKVY scheme was launched under the department of agriculture and cooperation (DAC) of the agriculture ministry in 2007 and was implemented as an Additional Central Assistance (ACA) to State Plan Scheme, with 100% central assistance.

“A proposal in this regard has been sent to the finance ministry for consideration, and it is expected that the ministry will approve the plan," the first person said.

News of the expected increase comes in the backdrop of the Bharatiya Janata Party (BJP)-led National Democratic Alliance’s (NDA) efforts to reach out to farmers ahead of assembly elections in Haryana, Maharashtra, Jharkhand and Jammu & Kashmir.

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The union government allocated ₹7,150 crore for RKVY in FY24, less than the budget estimate of ₹10,433 crore in FY23. In the interim budget for FY25, the government allocated ₹7,553 crore for RKVY.

Queries emailed to ministries of finance and agriculture remained unanswered.

“With the government focusing more on sustainable and innovative farming methods to increase yield and align with raising farmers' incomes, the contours of RKVY are designed specifically for farmers,” the second person said. “The funds from RKVY may also be used to expand the land coverage of crop sowing areas to enhance productivity,” this person added.

Making farming more lucrative

The Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) focuses on making farming lucrative by supporting farmers' efforts, reducing risks, and encouraging agri-business entrepreneurship.

The State Agriculture Infrastructure Development Programme (SAIDP) will require each state to create a plan similar to District Agriculture Plans (DAPs) and State Agriculture Plans (SAPs) to identify projects for the RKVY-RAFTAAR (infrastructure & assets) stream, ideally consolidating infrastructure needs from the DAPs and SAPs.

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BB Singh, the former additional director general of Indian Council of Agriculture Research (ICAR), said, “It’s an ongoing project, and any budget incentives for the project are always welcome. The scheme aims to create a better ecosystem for farmers and other stakeholders to increase farmers' incomes.”

“The scheme is very popular among farmers nationwide. It encompasses innovation and extension by providing funding for research, development, and dissemination of innovative agricultural practices and technologies," Singh added.

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In the interim budget presented on 1 February, the government had allocated ₹1.27 trillion (lakh crore) to the agriculture ministry for FY25, which was slightly more than the allocation of ₹1.26 trillion in FY24. Of this, about ₹1.17 trillion will go to the Department of Agriculture and ₹9,941.09 crore to the Department of Agricultural Research and Education (DARE).

As per the revised estimates for FY24, the Department of Agriculture was allocated ₹1.16 trillion, while DARE was given ₹9,876.60 crore.