How to Apply for RKVY (Rashtriya Krishi Vikas Yojana) Raftaar?

Agriculture has always been the backbone of India’s economy. Yet for decades, challenges like low productivity, lack of infrastructure, and limited access to modern technology held farmers back. To address these gaps, the Government of India launched the Rashtriya Krishi Vikas Yojana (RKVY) in 2007–08. This govt flagship scheme was designed to encourage states to invest more in agriculture and allied sectors, aiming for an ambitious ~4% annual growth in farming.

Over the years, RKVY has evolved into a multi-dimensional programme that not only supports traditional farming but also fuels the rise of agri-startups, farmer producer organizations (FPOs), and MSMEs in the agriculture ecosystem. In this blog, we will walk you through what RKVY is, who can apply, how to apply, budget trends, real-life success stories, What is Non Agriculture Certificate, and how StartupFlora’s expert team can help you tap into it.

What is RKVY?

RKVY is a Centrally Sponsored Scheme (CSS), meaning both the Central Government and the States share the funding. Its unique design gives states the flexibility to choose their own projects based on local needs.

For example, a water-scarce state like Rajasthan might prioritize micro-irrigation projects, while a horticulture hub like Kerala may channel funds into spices, fruits, or organic farming.

In 2017, RKVY was rebranded as RKVY-RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation). Under RAFTAAR, the government scheme added new components:

• Agri-Entrepreneurship & Innovation: direct support to startups.
• Post-harvest & Market Infrastructure: warehouses, cold storage, and supply chain.
• Farmer Income Focus: productivity improvement and income enhancement.

In 2020, it was relaunched again as PM-RKVY, but the spirit remains the same: building a modern, resilient, and profitable farm ecosystem.

Sectors and Industries Covered

RKVY’s scope is remarkably wide. It supports crops, horticulture, livestock, fisheries, and agro-processing, making it relevant for almost every farmer and agripreneur.

Major focus areas:

• Cereals, pulses, millets, cotton, plantation crops, horticulture (fruits & vegetables)
• Allied sectors: dairy, poultry, fisheries, piggery, sheep and goat rearing
• Farm mechanization: promoting machinery, custom hiring centers
• Irrigation & water use efficiency
• Soil health, natural/organic farming
• Agro-processing and value addition

This integrated design ensures RKVY doesn’t just stop at production but also covers storage, market linkages, and processing – all vital for higher farmer incomes.

Who Can Benefit from RKVY?

At first glance, RKVY seems to be only for State Governments. But in practice, several groups benefit:

1. Farmers and Farmer Producer Organizations (FPOs) – through state-implemented projects like training, irrigation, or crop diversification.
2. Agri-entrepreneurs and Startups – especially under RKVY-RAFTAAR, which funds youth-led innovation.
3. MSMEs in agriculture – those in food processing, farm machinery, agri-tech, and bio-fertilizers.
4. NGOs and Institutions – working in farm development or incubators supporting startups.

For example:

• A startup building IoT irrigation sensors can receive up to ₹25 lakh seed funding.
• A farmer group setting up a cold storage unit can get RKVY-supported infrastructure funding through their state plan.

So, whether you are a student with an agri-idea, a small FPO, or a scaling agri-MSME, RKVY has pathways to support you.

Budget Growth: From Lakhs to Crores

RKVY’s budget has steadily grown over time, showing the government’s commitment.

• 2017–18: ₹4,750 crore
• 2018–19: ₹3,600 crore
• 2019–20: ₹3,745 crore
• 2021–22: ₹1,034.21 crore released to states under RAFTAAR
• 2024–25: A record ₹7,553 crore allocated to PM-RKVY

This growth in funding means more projects, more states, and more beneficiaries every year. States like Maharashtra have even received ₹750+ crore annually under PM-RKVY.

Success Stories: Startups & MSMEs Funded

One of the most inspiring aspects of RKVY is how it has nurtured hundreds of agri-startups.

• Seed Grants: Idea-stage startups can get up to ₹5 lakh.
• Scale-up Grants: Product-ready startups can get up to ₹25 lakh.

Examples include:

• Agri drone companies for crop spraying.
• Bio-fertilizer ventures providing sustainable soil solutions.
• Food processing MSMEs creating value-added products from local crops.
• Women-led startups in tribal areas focusing on organic spices and honey.

Many of these were supported via RKVY Agribusiness Incubators (R-ABIs) across universities and research institutes.

How to Apply for RKVY

Here comes the most important part – the application process.

Step 1: Identify Your Category

• Farmers/FPOs: You don’t apply directly. Your benefits come through State Agriculture Department projects (e.g., irrigation subsidies, crop diversification).
• Startups/MSMEs: You apply through R-ABIs (RKVY Agribusiness Incubators) recognized by the Ministry.

Step 2: Prepare a Strong Proposal

For startups/MSMEs:

• Business idea/problem statement
• Technology/innovation involved
• Target market (farmers, B2B, etc.)
• Financial projections and impact on agriculture

Step 3: Approach Your State Department or Incubator

• Farmers/FPOs: Coordinate with your District Agriculture Office to know ongoing RKVY projects.
• Startups: Join a recognized R-ABI incubator program and pitch your idea.

Step 4: Project Approval

• Proposals are vetted by the State Level Sanctioning Committee (SLSC) chaired by the Chief Secretary.
• For startups, incubators forward shortlisted applications to the ministry for grant disbursal.

Step 5: Fund Disbursement

• Grants are typically released in tranches after milestone achievements.
• Beneficiaries may need to contribute 10% of project cost (for startups).

How StartupFlora Can Help You Apply

Navigating RKVY can be complex, especially for first-time applicants. That’s where StartupFlora’s scheme experts step in.

• Eligibility Guidance: Checking if your idea fits the right RKVY sub-component.
• Proposal Drafting: Crafting a bankable business plan aligned with state priorities.
• Documentation Support: Ensuring all forms, financials, and projections are accurate.
• Incubator Liaison: Connecting you with recognized R-ABIs for grant opportunities.
• End-to-End Process: From state-level submission to fund release, we guide you at every step.

With 10,000+ businesses already assisted and a strong network of banks, incubators, and government agencies, StartupFlora makes sure your RKVY application has the highest chance of success.

FAQs (Community-Style Q&A)

Q1. Who is eligible for RKVY?
Farmers, FPOs, cooperatives, startups, and MSMEs in agriculture. Farmers benefit through state projects, while startups apply via R-ABIs.

Q2. Is RKVY a loan or a grant?
It is a grant/subsidy. For startups, 90% funding is covered (up to ₹25 lakh), while the applicant contributes 10%.

Q3. How do I apply as a farmer?
You don’t apply individually. Instead, check with your State Agriculture Department for ongoing projects funded under RKVY.

Q4. How much funding can startups get?

• Up to ₹5 lakh for idea/pre-seed stage.
• Up to ₹25 lakh for seed/scale-up stage.

Q5. What is PM-RKVY?
It’s the updated version of RKVY-RAFTAAR since 2020, with a bigger budget and added focus on climate resilience and farmer income.

Final Thoughts

RKVY is more than just a government scheme – it’s a lifeline for India’s farmers and a launchpad for agri-entrepreneurs. From supporting a farmer in Bihar with micro-irrigation to helping a startup in Bangalore build AI-based crop monitoring systems, RKVY is reshaping Indian agriculture at every level.

If you are an aspiring agri-entrepreneur, MSME, or farmer group, don’t let the opportunity slip away. With guidance from StartupFlora’s expert team, you can turn your idea into reality, access grants, and contribute to India’s agricultural growth story.