On August 13, 2026, the Union Agriculture Ministry approved ₹605.71 crore for Rajasthan and Telangana to accelerate agricultural development under two umbrella schemes: the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and the Krishonnati Yojana (KY). Approved by Union Minister Shivraj Singh Chouhan, the funds aim to enhance farming infrastructure, productivity, and climate resilience. Rajasthan was allocated ₹340.59 crore, and Telangana received ₹265.12 crore. The Centre also praised Telangana's innovative "Farmer ID" model for transparent fertiliser distribution and urged Rajasthan to improve Kisan Credit Card (KCC) accessibility.
On August 13, 2026, Union Minister for Agriculture and Farmers' Welfare, Shivraj Singh Chouhan, approved fresh financial allocations totaling ₹605.71 crore for Rajasthan and Telangana. The funds were disbursed under two major Centrally Sponsored Schemes (CSS): the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and the Krishonnati Yojana (KY). The approval followed a review of the states' expenditure progress regarding their initial "Mother Sanctions" allocated earlier in the year.
The financial approvals were formalised during a virtual meeting held on August 13, 2026. Union Minister Shivraj Singh Chouhan chaired the meeting from Bhopal, connecting with senior agricultural officials and state ministers from New Delhi, Rajasthan, and Telangana.
1. State Action Plan: States prepare a Comprehensive Strategic Document and an Annual Action Plan based on their localized agricultural needs.
2. Project Approval: The central Project Approval Committee (PAC) reviews and approves the state action plans at the beginning of the financial year (e.g., April 2026 for these states).
3. Mother Sanction Release: The Centre issues a primary tranche of funds, known as the "Mother Sanction," to initiate implementation.
4. Utilisation Review: States must submit utilisation certificates proving they have spent a significant portion of the initial funds (Rajasthan spent 76%, Telangana spent 60%) before subsequent tranches are approved.
This funding allocation is highly relevant to UPSC GS Paper 2 (Governance & Federalism) and GS Paper 3 (Agriculture & Economy). Economically, the timely release of these funds prevents delays in creating critical farming infrastructure. From a policy perspective, the "cafeteria approach" of PM-RKVY exemplifies cooperative federalism, allowing states to tailor centrally funded schemes to local agro-climatic zones rather than adhering to a rigid top-down model. Socially, the emphasis on Kisan Credit Cards and Farmer IDs directly impacts rural credit access and reduces leakages in fertiliser subsidies.
India's framework of heavy state intervention and agricultural subsidies (via umbrella schemes like PM-RKVY) is a frequent point of contention at the World Trade Organization (WTO). Developed nations often argue that India's domestic support mechanisms breach the limits set by the WTO's Agreement on Agriculture (AoA), whereas India defends them as essential for the food security of its massive population (the "Peace Clause" utility).
Core Concept: Centrally Sponsored Schemes (CSS)
Q1. Which state was specifically praised by the Union Agriculture Ministry for its innovative 'Farmer ID' and fertiliser distribution model in August 2026? [Easy]
A) Rajasthan
B) Telangana
C) Madhya Pradesh
D) Andhra Pradesh
Answer: B
Explanation: During the review meeting, Union Minister Shivraj Singh Chouhan appreciated Telangana's new model for Farmer ID and transparent fertiliser distribution.
Q2. Under which umbrella schemes were the ₹605.71 crore funds approved for Rajasthan and Telangana? [Easy]
A) PM-KISAN and PM-FBY
B) PM-RKVY and Krishonnati Yojana
C) e-NAM and Paramparagat Krishi Vikas Yojana
D) PM-AASHA and RKVY
Answer: B
Explanation: The allocations were made under the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY).
Q3. PM-RKVY is often described as a "cafeteria scheme." What does this imply in the context of Indian governance? [Moderate]
A) It focuses exclusively on subsidising food canteens for farmers.
B) It allows state governments the flexibility to select specific agricultural components based on their local needs.
C) It strictly mandates states to implement all central directives without alteration.
D) It is an emergency fund that can only be used during droughts or floods.
Answer: B
Explanation: A "cafeteria approach" provides flexibility, allowing states to pick and choose projects from a defined menu that best suit their specific agro-climatic and policy requirements.
Q4. Regarding the funding of the PM-RKVY and Krishonnati Yojana, which of the following statements is correct? [Moderate]
A) They are Central Sector Schemes funded 100% by the Union Government.
B) They are Centrally Sponsored Schemes funded jointly by the Centre and the States.
C) They are purely state-funded schemes monitored by the NITI Aayog.
D) They are funded entirely by the World Bank under international agricultural grants.
Answer: B
Explanation: Both PM-RKVY and Krishonnati Yojana are Centrally Sponsored Schemes (CSS), meaning the financial burden is shared, but implementation is done by the states.
Q5. In the context of government schemes, what does the term "Mother Sanction" refer to? [Moderate]
A) The final audit clearance given by the CAG.
B) The first major release of central funds under an approved annual action plan.
C) A special fund reserved only for women farmers.
D) The interest subvention provided under the Kisan Credit Card scheme.
Answer: B
Explanation: A Mother Sanction is the term used for the first primary tranche of funds released to initiate a scheme or plan at the state level.
Q6. The rationalisation of agricultural schemes into the PM-RKVY and Krishonnati Yojana umbrella schemes was done to allow states to prepare a Comprehensive Strategic Document. Which constitutional provision empowers the Centre to give grants to states for agriculture, a state subject? [Tricky]
A) Article 275
B) Article 280
C) Article 282
D) Article 312
Answer: C
Explanation: Article 282 allows the Union or a State to make grants for any public purpose, even if the subject (like agriculture) does not strictly fall within their legislative competence.
Q7. During the virtual review, Rajasthan was explicitly instructed to focus on which specific agricultural financial instrument? [Tricky]
A) Agriculture Infrastructure Fund (AIF)
B) Micro Irrigation Fund (MIF)
C) Kisan Credit Card (KCC)
D) Soil Health Card (SHC)
Answer: C
Explanation: Union Minister Shivraj Singh Chouhan specifically called for special attention to the status of Kisan Credit Cards (KCC) in Rajasthan to ensure hassle-free credit access.
Q8. The Union Government noted that Telangana's expenditure was lagging behind schedule in specific missions. Which missions were flagged? [Tricky]
A) Cotton and Jute Missions
B) Millets and Sorghum Missions
C) Oilseeds and Pulses Missions
D) Horticulture and Floriculture Missions
Answer: C
Explanation: The Centre stressed the need for regular monitoring in Telangana because expenditure under the Oilseeds and Pulses Missions was relatively behind schedule.
PYQ 1:
With reference to the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY), consider the following statements:
A) It is a Central Sector Scheme directly implemented by the Ministry of Agriculture.
B) It functions on a rigid central mandate where states cannot alter fund allocations.
C) It adopts a cafeteria approach, allowing states flexibility in choosing components.
D) It was launched primarily to promote organic farming exclusively in the North-Eastern states.
Answer: C
Explanation: PM-RKVY is a Centrally Sponsored Scheme with a cafeteria approach, giving states the flexibility to choose components suited to their needs.
PYQ 2:
Consider the following statements regarding the recent approvals under PM-RKVY and Krishonnati Yojana in August 2026:
1. Telangana was lauded for its new transparent fertiliser distribution and Farmer ID model.
2. Rajasthan was directed to improve its implementation of the Kisan Credit Card scheme.
3. The funds were approved only after states proved 100% utilisation of their previous Mother Sanctions.
Which of the above statements is/are correct?
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) All of the above
Answer: B
Explanation: Statements 1 and 2 are correct based on the review meeting. Statement 3 is incorrect; states do not need 100% utilisation. For example, Rajasthan had spent 76.06% and Telangana 60.93% of their first Mother Sanctions when the new funds were approved.
PYQ 3:
Assertion (A): The Union Government provides substantial funding to states for agricultural development through schemes like PM-RKVY.
Reason (R): Agriculture is enlisted in the Concurrent List of the Seventh Schedule, making it a joint legislative responsibility of the Centre and States.
In the context of the above two statements, which one of the following is correct?
Answer: Assertion (A) is correct, but Reason (R) is incorrect.
Explanation: The assertion is factually true, but the reason is false because Agriculture is an Entry 14 subject under the State List, not the Concurrent List.
Question 1 (150 words): The "cafeteria approach" of the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) is a prime example of cooperative federalism. Discuss.
The "cafeteria approach" under the PM-RKVY embodies cooperative federalism by decentralising agricultural planning and acknowledging the vast agro-climatic diversity of India. Unlike rigid, top-down Central Sector Schemes, PM-RKVY operates as a Centrally Sponsored Scheme that provides a menu of options. State governments are empowered to select specific components—such as crop production, post-harvest management, or soil health—that align directly with their local agricultural challenges.
This approach was evident in the recent approval of ₹605.71 crore to Rajasthan and Telangana, where fund allocation was based on State-prepared Annual Action Plans rather than Central mandates. Furthermore, it fosters competitive and innovative governance at the state level, as seen when the Centre praised Telangana’s unique "Farmer ID" model for fertiliser distribution. Going forward, expanding this flexible funding model will be crucial to achieving climate-resilient agriculture and mitigating regional agrarian distress effectively.
Question 2 (250 words): Evaluate the necessity of umbrella schemes like PM-RKVY and Krishonnati Yojana in addressing the dual challenges of agricultural infrastructure deficit and food security in India.
The rationalisation of numerous Centrally Sponsored Schemes into umbrella programmes like the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY) represents a strategic shift toward holistic agricultural governance. Historically, fragmented schemes led to overlapping objectives, fund parking at the state level, and administrative inefficiencies.
Constitutionally, while agriculture is a State subject (Entry 14), the massive capital required for rural infrastructure necessitates Central intervention via Article 282 grants. PM-RKVY addresses the infrastructure deficit by focusing on sustainable agriculture, farm mechanisation, and post-harvest value chains. By adopting a "cafeteria approach," it allows states to tailor solutions—such as Rajasthan utilising its recent ₹340.59 crore allocation to enhance local agri-infrastructure and Kisan Credit Card (KCC) penetration. Conversely, the Krishonnati Yojana acts as the bedrock for food security, ensuring self-sufficiency through sub-missions on seed quality, soil health, and targeted crops.
Internationally, robust domestic support frameworks are vital for India to buffer its farmers against volatile global markets, despite pressures at the WTO regarding agricultural subsidies. However, challenges persist, such as delayed fund utilisation; for instance, the Centre recently flagged Telangana's lagging expenditure in the critical Oilseeds and Pulses Missions.
To ensure long-term success, states must improve their fund-absorption capacities, and the Centre should mandate the integration of Digital Public Infrastructure (DPI)—similar to Telangana's successful "Farmer ID" model—across all umbrella scheme distributions to prevent leakages and ensure direct beneficiary targeting.
For Prelims, examiners heavily favour the "Cafeteria Approach" definition of PM-RKVY and the distinction between Central Sector vs. Centrally Sponsored Schemes. They may also use Telangana's "Farmer ID" model as a standalone current affairs trivia question. For Mains (GS 2 and GS 3), focus on how umbrella schemes reduce bureaucratic fragmentation and promote cooperative federalism through state-specific action plans. If preparing for interviews, be ready to defend India's agricultural subsidies and CSS structures against arguments for pure decentralisation, citing the need for national food security. Expect a question in the upcoming cycle linking digital agriculture (like Farmer IDs) to subsidy rationalisation.