RKVY-RAFTAAR Funding

Overview

The Rashtriya Krishi Vikas Yojana (RKVY) RAFTAAR scheme, short for Remunerative Approaches for Agriculture and Allied Sector Rejuvenation, aims to make farming a profitable economic activity by supporting farmers, mitigating risks, and promoting agri business entrepreneurship. This scheme incentivizes states to increase public investment in agriculture and allied sectors, offering them flexibility and autonomy in planning and execution. It focuses on addressing local agricultural priorities based on agro climatic conditions and available resources. RKVY-RAFTAAR seeks to reduce yield gaps in key crops and improve productivity across agriculture and allied sectors through focused interventions. The scheme operates on a project based approach, requiring states to prepare Detailed Project Reports (DPRs) outlining feasibility, implementing agencies’ competencies, and expected benefits, with clear timelines for implementation.

Key points

• State Autonomy and Flexibility: Provides states the freedom to plan and execute schemes based on local and farmers’ needs.
• Promoting Value Chain Addition: Encourages production models that increase farmers’ income and enhance productivity.
• Youth Empowerment: Skill development, innovation, and agri entrepreneurship models that attract youth to agriculture.
• Assistance eligibility depends on the amount allocated by the state above the baseline expenditure on agriculture and allied sectors.
• Crop Husbandry (including Horticulture)
• Animal Husbandry and Fisheries
• Dairy Development
• Agricultural Research and Education

Benefits of RKVY-RAFTAAR Scheme

• Strengthening Farmer Efforts: Creation of pre and post harvest agri infrastructure, improving access to quality inputs, storage, and market facilities.
• State Autonomy and Flexibility: Provides states the freedom to plan and execute schemes based on local and farmers’ needs.
• Promoting Value Chain Addition: Encourages production models that increase farmers’ income and enhance productivity.
• Risk Mitigation: Focus on additional income generating activities like integrated farming, mushroom cultivation, beekeeping, and floriculture.
• Youth Empowerment: Skill development, innovation, and agri entrepreneurship models that attract youth to agriculture.

Eligibility Criteria

• Assistance eligibility depends on the amount allocated by the state above the baseline expenditure on agriculture and allied sectors.
• The eligibility for sectoral expenditure is based on the following allied sectors: Crop Husbandry (including Horticulture) Animal Husbandry and Fisheries Dairy Development Agricultural Research and Education Forestry and Wildlife Plantation and Agricultural Marketing Food Storage and Warehousing Soil and Water Conservation Agricultural Financial Institutions Other Agricultural Programs and Cooperation
• Crop Husbandry (including Horticulture)
• Animal Husbandry and Fisheries
• Dairy Development
• Agricultural Research and Education
• Forestry and Wildlife
• Plantation and Agricultural Marketing
• Food Storage and Warehousing
• Soil and Water Conservation
• Agricultural Financial Institutions
• Other Agricultural Programs and Cooperation

Exclusions under RKVY-RAFTAAR Scheme

• Creation or Topping Up of Revolving Funds: No funding for creating or adding to revolving or corpus funds.
• Maintenance and Recurring Expenses: No funding for maintenance of assets or any recurring operational costs.
• Employee Related Expenses: No funding for salary, transport, or allowances (TA/DA) of permanent or semi permanent employees.
• Outsourcing/contractual manpower expenses are allowed within the 2% allocation for administrative expenses (with SLSC approval).
• Fuel and Lubricants: expenses against Petrol, Oil, and Lubricants.
• Subsidy Financing: No funding for topping up subsidies or financing State share for other Central/State schemes.
• Foreign Visits and Study Tours: No funding for foreign visits or study tours, including for farmers abroad.
• Vehicle Purchase: No funding for the purchase of vehicles.
• Debt Waivers and Compensation: No funding for debt waivers, interest subvention, insurance premiums, calamity relief, or additional bonuses beyond MSP.
• Private Sector/NGO Asset Creation: No funding for creating or strengthening assets in the private sector or NGOs beyond what is permitted under other Government schemes.

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