What is Rashtriya Krishi Vikas Yojana? Full Guide to Benefits & Eligibility

Rashtriya Krishi Vikas Yojana (RKVY): A Decentralized Push Toward Agricultural Growth

June 18, 2025
By LearnAndFun Online

In a bid to promote holistic development in India’s agricultural sector, the Central Government continues to strengthen the implementation of the Rashtriya Krishi Vikas Yojana (RKVY)—a flagship scheme designed to encourage states to invest in agriculture and allied activities. Launched in 2007-08, RKVY empowers state governments to develop agricultural strategies suited to their local conditions and needs.

According to official figures, the scheme has significantly boosted farm infrastructure and innovation in multiple states, with over ₹1.5 lakh crore already released since inception.

What Is RKVY and Why Was It Launched?

The Rashtriya Krishi Vikas Yojana was launched by the Ministry of Agriculture & Farmers Welfare to bridge the investment gap in agriculture and increase public expenditure in this critical sector. Recognizing that agriculture is a state subject under the Indian Constitution, the Centre introduced RKVY as a flexible funding scheme where state governments could propose projects based on their own agro-climatic conditions.

The scheme adopts a bottom-up approach, ensuring that district and state agricultural plans are the foundation of all proposed initiatives. This has allowed states like Punjab, Karnataka, Maharashtra, and Odisha to launch tailored interventions ranging from irrigation and crop diversification to agri-tech innovation.

Key Features of the Scheme

• Decentralized Planning: Unlike other centrally controlled schemes, RKVY allows state governments to submit District Agriculture Plans (DAPs) and State Agriculture Plans (SAPs).
• Flexible Financial Support: Funds are released by the Centre based on the proposals and performance of the states.
• Wide Coverage: Includes support for crop production, animal husbandry, fisheries, horticulture, marketing infrastructure, and farmer training.
• Innovation Promotion: Special emphasis on RKVY-RAFTAAR, launched in 2017, which supports agri-startups, technology incubators, and rural entrepreneurs.

RKVY-RAFTAAR: A Step Forward for Agri-Entrepreneurs

Under the revised format of RKVY introduced in 2017, the RAFTAAR (Remunerative Approaches for Agriculture and Allied sector Rejuvenation) component was added to focus on improving farmer income through innovation and entrepreneurship.

With RAFTAAR, the government has:

• Funded over 400 agri-startups across India
• Established incubation centres in agricultural universities and Krishi Vigyan Kendras
• Promoted digital tools such as drones, mobile apps, soil sensors, and weather forecasting platforms

This component has particularly attracted young entrepreneurs and tech-driven agribusinesses, helping bridge the gap between traditional farming and modern solutions.

Budget Allocation and Impact

In the Union Budget 2024-25, the Centre allocated over ₹13,000 crore under various RKVY sub-heads. According to data from the Ministry of Agriculture, the scheme has contributed to:

• Construction of thousands of irrigation facilities and storage godowns
• Modernization of rural haats (markets)
• Promotion of organic farming and sustainable practices
• Encouragement of climate-resilient farming models

RKVY has also supported tribal and remote areas, where agriculture is often the primary source of income.

Challenges and Implementation Issues

Despite its wide reach, the scheme is not without its challenges. Some reports have pointed to:

• Under-utilization of funds in certain states
• Delays in project approvals
• Lack of trained manpower for implementation
• Limited awareness among grassroot farmers

However, the government has taken steps to improve transparency and monitoring. With the Digital Agriculture Mission underway, efforts are being made to link RKVY projects with real-time data, GPS tracking, and online dashboards.

Voices from the Ground

In Belgaum, Karnataka, farmer cooperative societies have used RKVY funds to establish cold storage units and processing centres, reducing post-harvest losses and increasing income.

A farmer from Madhya Pradesh shared, “Earlier we had to sell our crops immediately at low prices. But after RKVY-funded storage facilities came, we hold our produce and sell when prices are better. It’s changed our lives.”

Conclusion                      

The Rashtriya Krishi Vikas Yojana is a shining example of how flexible, locally-driven planning can transform Indian agriculture. By giving states the autonomy to choose their path and by encouraging innovation through RAFTAAR, the scheme addresses both productivity and profitability.

As India aims to double farmers’ income and embrace smart agriculture, RKVY will remain a cornerstone in shaping a resilient, tech-enabled, and sustainable farming ecosystem.