Centre to release 2nd tranche of Rs 1,183 cr to five states under two agri schemes
Union Agriculture Minister Shivraj Singh Chouhan approved Rs 1,183.11 crore funds for five states. These funds will enhance farmers' income and reduce cultivation costs. Andhra Pradesh and Tamil Nadu will receive significant portions of the allocated money. The initiative aims to promote micro-irrigation and modern machinery for farmers. States are urged to expedite scheme implementation for timely farmer benefits.
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Context
The Union Agriculture Minister has approved the release of ₹1,183.11 crore as the second tranche of funds to five states—Uttarakhand, Andhra Pradesh, Odisha, Tamil Nadu, and Tripura. This funding is sanctioned under two major umbrella schemes: (PM-RKVY) and . The goal is to boost farmers' income, reduce input costs, and promote modern agricultural technologies.
UPSC Perspectives
Economic
This news highlights the ongoing structural shift in Indian agriculture from merely increasing production to focusing on income augmentation and cost optimization. The funds are directed towards schemes like (PM-RKVY), an umbrella scheme initiated in 2007 (originally as RKVY) to ensure holistic development of agriculture and allied sectors. Recently, the cabinet approved the rationalization of various agricultural schemes into two major umbrellas: PM-RKVY (focusing on sustainable agriculture and infrastructure) and (focusing on food security and agricultural missions). A key component mentioned is the (SMAM), which provides subsidies to small and marginal farmers for purchasing modern machinery. This addresses the challenge of low farm mechanization in India, which leads to high cultivation costs and lower productivity. From a UPSC perspective, understanding the rationale behind grouping schemes into umbrella programs (efficiency, reduced overlap) and the economic impact of mechanization on smallholders is crucial for GS Paper 3.
Governance
The release of funds to specific states underscores the principles of Cooperative Federalism in agricultural governance. While agriculture is a State subject under of the Indian Constitution, the Centre plays a significant role through Centrally Sponsored Schemes (CSS) like PM-RKVY and . The term 'mother sanction' refers to the initial, overarching approval of funds by the central ministry, from which specific, detailed allocations are subsequently made. The Centre's directive to states to 'expedite implementation' highlights a common governance challenge: the gap between fund allocation and actual utilization at the ground level. For Mains, candidates should analyze the efficacy of CSS in addressing regional agricultural disparities and the challenges states face in implementing central schemes effectively, such as matching fund requirements or capacity constraints.
Environmental
A critical aspect of the funding is the promotion of micro-irrigation under the 'Per Drop More Crop' component. This addresses the severe water stress facing Indian agriculture, which consumes approximately 80% of the country's freshwater resources, largely through inefficient flood irrigation. Micro-irrigation techniques like drip and sprinkler systems significantly improve water use efficiency, leading to water conservation and simultaneously increasing crop yields by delivering water and nutrients directly to the plant roots (fertigation). This aligns with the broader goals of sustainable agriculture under the (NMSA). For UPSC, candidates must connect water-saving technologies not just to agricultural productivity, but to broader environmental challenges like groundwater depletion and climate change adaptation.