To revamp the allocations for agriculture and allied sectors the Cabinet Committee on Economic Affairs approved the continuation of Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana-Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three years.
According to the official release from the ministry, the financial allocation of the scheme will be Rs. 15,722 crore with the objective of making farming as a remunerative economic activity through strengthening the farmer's effort, risk mitigation and promoting agribusiness entrepreneurship.
RKVY-RAFTAAR funds would be provided to the States as 60:40 grants between Centre and States (90:10 for North Eastern States and the Himalayan States)
According to the report, 50 percent of the regular outlay will be provided for infrastructure and assets, 30 for value addition linked production projects and 20 percent for flexi funds. The other 20 percent of the annual outlay would be provided for special sub-schemes of national priorities and 10 percent of annual outlay including two percent of administrative costs would be allocated for the innovation and agri entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprises.
The scheme will incentivize States in enhancing more allocation to Agriculture and Allied Sectors. This will also strengthen farmer’s efforts through the creation of agriculture infrastructure that helps in supply of quality inputs, market facilities etc. This will further promote agri-entrepreneurship and support business models that maximize returns to farmers.