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12 Jan 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

Government to Merge Agriculture Schemes, Linking Funds to State Reforms

Government aims to streamline agricultural schemes and incentivize state-level reforms.

Government to Merge Agriculture Schemes, Linking Funds to State Reforms

Photo by M abnodey

The government is planning to merge several agriculture-related schemes, including those under the PM Krishi Sinchai Vikas Yojana, to improve efficiency and reduce redundancy. This consolidation aims to link funding to states with their progress in implementing agricultural reforms. The move is intended to streamline the allocation of resources and incentivize states to adopt best practices in agriculture, potentially leading to increased productivity and improved farmer welfare. The specific details of the merged schemes and the criteria for linking funds to state reforms are expected to be announced soon.

UPSC Exam Angles

1.

GS Paper 3: Economy - Agriculture

2.

Connects to syllabus points on government policies and interventions for development in various sectors

3.

Potential question types: Statement-based, analytical, scheme-based

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More Information

Background

The push for agricultural reforms in India has deep historical roots, stemming from the challenges faced during the British colonial era. Land tenure systems like the Zamindari and Ryotwari systems created significant disparities and hindered agricultural productivity. Post-independence, the focus shifted to land reforms aimed at redistributing land and empowering farmers.

The Green Revolution in the 1960s and 70s, while boosting production, also led to regional imbalances and environmental concerns. Subsequent efforts have focused on diversification, sustainable agriculture, and improving farmer incomes. The current move to merge agricultural schemes and link funding to state reforms can be seen as a continuation of this long-standing effort to address the structural issues plaguing the agricultural sector and to incentivize states to adopt more efficient and equitable agricultural practices.

Latest Developments

In recent years, there has been increasing emphasis on precision agriculture, use of technology, and promoting Farmer Producer Organizations (FPOs) to enhance farmer incomes. The government launched the PM-KISAN scheme in 2019 to provide direct income support to farmers. The three farm laws passed in 2020, which aimed at liberalizing agricultural markets, faced significant opposition and were eventually repealed.

The focus has now shifted towards building consensus and promoting reforms through state-level initiatives. The proposed merger of agricultural schemes and linking funds to state reforms is expected to incentivize states to adopt best practices and improve the efficiency of resource allocation in the agricultural sector. The success of this initiative will depend on effective coordination between the central and state governments and the ability to address the concerns of farmers and other stakeholders.

Practice Questions (MCQs)

1. Consider the following statements regarding the PM Krishi Sinchai Yojana (PMKSY): 1. It aims to improve water use efficiency at the farm level through micro-irrigation. 2. It is implemented by the Ministry of Agriculture and Farmers Welfare. 3. The scheme promotes 'Per Drop More Crop' as a key strategy. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 and 3 are correct. PMKSY aims to improve water use efficiency and promotes 'Per Drop More Crop'. It is implemented by the Ministry of Jal Shakti and Ministry of Agriculture and Farmers Welfare.

2. Which of the following factors is/are considered crucial for the success of linking agricultural scheme funding to state reforms? 1. Political will at the state level to implement reforms. 2. Availability of accurate and timely data on agricultural performance. 3. Effective monitoring and evaluation mechanisms. Select the correct answer using the code given below:

  • A.1 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three factors are crucial. Political will is needed for implementation, data is needed for informed decision-making, and monitoring is needed to track progress and ensure accountability.

3. Assertion (A): Merging agriculture schemes can lead to improved efficiency and reduced redundancy. Reason (R): Overlapping schemes often result in duplication of efforts and inefficient allocation of resources. In the context of the above statements, which of the following is correct?

  • A.Both A and R are true and R is the correct explanation of A
  • B.Both A and R are true but R is NOT the correct explanation of A
  • C.A is true but R is false
  • D.A is false but R is true
Show Answer

Answer: A

Both the assertion and the reason are true, and the reason correctly explains why merging schemes can improve efficiency.

4. Which of the following is NOT a likely benefit of linking agricultural scheme funding to state reforms?

  • A.Increased agricultural productivity
  • B.Improved farmer welfare
  • C.Reduced regional disparities in agricultural development
  • D.Guaranteed increase in MSP for all crops
Show Answer

Answer: D

While linking funding to reforms can indirectly influence MSP, it does not guarantee an increase in MSP for all crops. The other options are likely benefits.

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