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LATEST NEWS UPDATES | Cut in RKVY Funds to Hit Agriculture Sector Hard

Cut in RKVY Funds to Hit Agriculture Sector Hard

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published Published on Oct 7, 2015   modified Modified on Oct 7, 2015
-The New Indian Express

BHUBANESWAR: Implementation of several schemes including Rashtriya Krishi Vikash Yojana (RKVY) in the farm sector will be affected because of the drastic cut in Central allocations.

Other programmes to be hit by the Central decision include Rainfed Area Development Programme (RADP), National Food Security Mission (NFSM), National Horticulture Mission (NHM) and Sub-Mission for Seed and Planting Material (SMSP).

Sources said the State Government will continue to implement the programmes from its own resources. Budgetary allocations are likely to be made for these schemes in the supplementary budget. The Centre, which used to provide 100 per cent funding on RKVY, provided `274 crore in 2010-11. Allocations increased to `356 crore in 2011-12 and `468 crore in 2012-13.

The State received ` 529 crore during 2013-14 under RKVY which came down to `482 crore in 2014-15. Allocations under the scheme has come down to around `200 crore in 2015-16.

Now RKVY is being funded on 50:50 basis and the State Government will have to share an equal amount to run the programme. Such a huge cut in RKVY is likely to hit the agriculture sector growth.

Another programme which is highly crucial for the State is National Horticulture Mission (NHM) as there is ample scope to scale up horticulture sector which is on mission mode.

During 2010-11, the State received `32 crore which went up to `53 crore in 2011-12 and further to `65 crore during 2012-13 for horticulture development. In 2013-14, the State received `84 crore. Allocations from the Centre came down to `71 crore in 2014-15 and further to `57 crore in 2015-16.

One of the most important programmes for Eastern India in general and Odisha in particular is the flagship Centrally sponsored programme Bringing Green Revolution in Eastern India (BGREI). However, implementation of the programme will also suffer because of slashing of funds.

Odisha received `62 crore in 2011-12. The allocations increased to `217 crore but went down to `199 crore in 2013-14 and to `184 crore in 2014-15. In the changed scenario under NDA dispensation, Odisha is going to get only `57 crore as BGREI funds.

Official sources said the State Government has set a target to invest `402 crore under RKVY after the fund cut. Of 447 projects taken up in the State under RKVY, 183 have been completed and 264 projects are in various stages of execution.

RKVY was launched in 2007-08 with the objective to incentivise States to draw up comprehensive agriculture development plans taking into account agro-climatic conditions, natural resources and technology for inclusive growth of agriculture and allied sectors.


The New Indian Express, 6 October, 2015, http://www.newindianexpress.com/states/odisha/Cut-in-RKVY-Funds-to-Hit-Agriculture-Sector-Hard/2015/10/06/article3065264.ece


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