The Union Ministry of Agriculture has proposed a major restructuring of its flagship farm development programme by merging three ongoing schemes with the Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY). The proposed umbrella scheme will run for five years, from April 2026 to March 2031, with an outlay of Rs 1.75 lakh crore. The move is aimed at linking central support more closely with state-level reforms, milestones, and performance in agriculture.
Proposed Scheme Merger
The schemes proposed for merger are:
- Krishonnati Yojana (KY), which supports farmers’ income growth.
- National Mission on Natural Farming (NMNF), which promotes chemical-free farming practices.
- National Bee and Honey Mission (NBHM), which supports beekeeping and honey production.
PM-RKVY, KY and NMNF are Centrally sponsored schemes implemented by states with shared funding. NBHM is currently a Central sector scheme fully funded and implemented by the Centre.
Performance-Based Fund Allocation
Under the new structure, fund allocation to states is expected to depend on five parameters. The highest weightage, 30 per cent, is proposed for assessment of reform initiatives and milestones achieved by states. This is change from the existing allocation pattern under PM-RKVY guidelines, which mainly considered factors such as:
- share of net un-irrigated area,
- share of small and marginal farmers,
- share of youth population.
The reform-linked approach is intended to encourage states to adopt agriculture reforms more actively.
Funding Pattern and Timeline
The proposed umbrella scheme will follow a funding ratio of 60:40 for most states. Northeastern and Himalayan states will receive funds in a 90:10 ratio. Union Territories will be funded fully by the Centre. The proposal is being processed for approval before being placed before the Union Cabinet. It aligns with the 16th Finance Commission cycle and reflects a shift towards outcome-based agriculture financing.
Background of PM-RKVY
PM-RKVY, earlier known as Rashtriya Krishi Vikas Yojana, was launched in 2007. It was designed as an umbrella scheme for holistic development of agriculture and allied sectors. The scheme allows states to choose activities according to their district and state agriculture plans. The latest proposal seeks to expand this model by combining related schemes under one performance-oriented framework.
Last Modified: April 25, 2026