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LATEST NEWS UPDATES | Farm schemes to have states in lead role in XIIth plan by Devika Banerji

Farm schemes to have states in lead role in XIIth plan by Devika Banerji

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published Published on May 23, 2011   modified Modified on May 23, 2011
The agriculture ministry has decided to drastically reduce the number of central schemes after it found that most of its schemes, barring a few like the Rashtriya Krishi Vikas Yojna (RKVY), have become redundant.

The farm ministry thinks only 10 of the 51 existing schemes should be sufficient to take care of the sector. The total outlay for agriculture schemes is 15,034 crore.

"It is true that many of our 51 schemes have overlapping objectives and are not very useful," said a senior official in the agriculture ministry.

"We want to streamline all the schemes to around 10," he said.

The mainstay of agriculture development schemes would continue to be the RKVY and a new variant of the scheme that will focus on infrastructure and agriculture statistics.

The scheme, which currently has the highest allocation of 6,722 crore among all other agriculture schemes, has greater acceptance among states as it provides them with the flexibility to formulate state-specific strategies while being administered from the centre.

The ministry has outlined the restructuring in a 'Proposals for Restructuring and Streamlining Development Schemes for the Twelfth Plan' that has been circulated for comments within the government.

It has said that development programmes often take the initiative away from the states and also micro-manage agricultural development in the states.

The 10 focused and integrated schemes will provide "much wider choice and flexibility to the states and districts," says the ministry.

These 10 schemes will follow the RKVY model. The outlay for RKVY, introduced in 2007, is given as an additional central assistance to states giving them full control of the funds.

The Centre monitors the state initiatives which could span from agro climactic conditions, natural resource issues, technology, livestock, poultry, fisheries, land reforms, etc.


"RKVY has provided a new and flexible platform for routing assistance to states and places the states in the driver's seat in terms of what is best for agriculture in their respective areas," the ministry proposal to planning commission notes.

"Many other schemes that we currently have can easily be merged in RKVY," added the ministry official. The rest of the schemes, as suggested by the agriculture ministry would be 7 mission mode programmes.

Given the vast scope of the scheme and its state-specific nature, more than a third of money for agriculture programmes have gone into the scheme by the end of the ongoing 11th plan (2006-12) and is expected to increase further in the 12th plan (2012-17).

"By the end of the 12th plan, half or even two thirds of the money will have to go to RKVY. The role of other schemes will erode," said planning commission member Abhijit Sen.

With the planning commission working to phase out centrally funded schemes in favour of schemes which provide greater flexibility to states and have proved to be more efficient, other ministries are also expected to follow suit.

Rationalising the number of schemes is an integral part of the approach to 12th plan where the plan panel has to work with limited resources to generate optimal results.

"We are undertaking this exercise to ensure that money is utilized in schemes that work. It is common sense, as one size cannot fit all. We are working on it," said another Planning Commission official. The commission has asked all ministries to examine all their schemes and submit a proposal outlining possible scrapping or streamlining of schemes conceptualized and funded by the central government.


The Economic Times, 23 May, 2011, http://economictimes.indiatimes.com/news/economy/agriculture/farm-schemes-to-have-states-in-lead-role-in-xiith-plan/articleshow/8522095.cms


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