Paramparagat Krishi Vikas Yojana (PKVY)

Paramparagat Krishi Vikas Yojana

The Paramparagat Krishi Vikas Yojana (PKVY), launched in 2015 under the Ministry of Agriculture & Farmers Welfare, is a national scheme designed to support and promote organic farming in India. It uses a cluster-based approach, encouraging groups of 50 or more farmers to transition a minimum of 20 hectares (50 acres) of land to chemical-free cultivation over three years. The scheme provides end-to-end financial assistance of up to ₹31,500 per hectare over three years, which includes a DBT of ₹15,000/ha to farmers for organic inputs, along with support for PGS-India certification, capacity building, and marketing. Its primary goal is to produce chemical-free food, improve soil health, and empower farmer collectives.

  • Primary Purpose : To promote organic farming, resulting in chemical-free agricultural products and improved soil health.
  • Secondary Purpose : To form farmer clusters for Participatory Guarantee System (PGS) certification, provide end-to-end support (production to marketing), and reduce farmers’ reliance on external chemical inputs.
  • Controlling Ministry : Ministry of Agriculture & Farmers Welfare (Implemented by the Organic Farming cell of the Integrated Nutrient Management Division).
  • Launch Year : 2015
  • Official Website : https://pgsindia-ncof.gov.in/
  • Target Location : Central/Pan India. It is a Centrally Sponsored Scheme (CSS) implemented in all States and Union Territories.

Scheme Categories

  • Infrastructure & Market Access : Market Reforms & E-Trading, Value Chain Integration
  • Diversification & Resource Management : Organic & Sustainable Farming, Soil Health & Input Management

Financial Aid & Disbursement Details

  • Financial Aid : ₹31,500 per hectare for a three-year period (per farmer in the cluster). This is the total assistance under PKVY (excluding specific components like FPO formation).
  • Direct Cash Benefit : ₹15,000 per hectare for 3 years (transferred directly to farmers via DBT) for on-farm and off-farm organic inputs.
  • Disbursement Frequency : Released to the state by the Centre upon approval of the Annual Action Plan, typically disbursed to farmers in installments over three years for organic conversion.
  • Subsidy/Grant Cap : Maximum subsidy limit is one hectare per farmer within a cluster.
  • Maximum Coverage Value : A cluster of 20 hectares (50 acres) is eligible for a maximum assistance of approximately ₹14.95 Lakhs (including funds for farmer members, mobilization, and certification).

Eligible Farmer Type

  • Landholding Size : Small/Marginal Farmers (A minimum of 65% of the total number of farmers in a cluster should belong to this category, as far as practicable).
  • Land Tenure & Labor Status : Owner-Cultivator (Must have cultivable landholding in their name).
  • Collective & Institutional Structures : FPOs/Cooperatives (The scheme promotes forming Farmer Clusters of 50 or more farmers to take up organic farming).
  • Socio-Economic Equity : Women Farmers (At least 30% of the budget allocations are to be earmarked for women beneficiaries/farmers).

Specific Eligibility Criteria

  • Landholding Requirement : Maximum landholding is generally restricted to one hectare per farmer to receive the financial assistance, though the cluster size is 20 hectares (50 acres). The land must be contiguous where possible.
  • Geographic/Crop Criteria : Farmers must commit to converting their land to certified organic farming under the Participatory Guarantee System (PGS) – India framework.
  • Exclusions Checklist : Not explicitly defined in general scheme documents, but farmers must agree to cease the use of chemical fertilizers and pesticides on the land enrolled in the cluster.
  • Prior Benefit Restriction : Not explicitly stated, but the financial support is provided over a three-year conversion period.

Application and Disbursement Process

  • Application Method : Primarily through Regional Councils (RCs) or the local District Agriculture Office/ATMA as part of a cluster formation. Online application may be facilitated via state portals or the MyScheme portal.
  • Verification/e-KYC Step Mandatory : Verification of identity, land records, and bank account details is mandatory. The scheme involves a farmer pledge to PGS-India and field-level inspection by the Regional Council.
  • Disbursement Schedule : Released to the farmer in installments over three years, tied to the progress of organic conversion and certification milestones.
  • Disbursement Type : Direct Benefit Transfer (DBT) to the farmer’s Aadhaar-seeded bank account for the organic input component (₹15,000/ha for 3 years).
  • Status Tracking Method : Farmers can check with their Regional Council or the District/State Agriculture Department. Tracking may also be available on relevant state/national scheme portals.

Required Documents Checklist

  • Identity & Authentication :
    • Aadhaar Card : Mandatory for identity proof and completing e-KYC.
  • Financial Details :
    • Bank Account Passbook : Essential for DBT; account must be Aadhaar-seeded.
  • Photographic Proof :
    • Passport Size Photograph : Required for the application form.
  • Citizenship :
    • Proof of Citizenship (if required) : To confirm applicant is a citizen of India.
  • Land Ownership :
    • Record of Rights (RoR) / Land Records : State-specific land records (e.g., Khasra/Khatauni, 7/12, 8-A) showing cultivable land in the applicant’s name.
  • Caste/Category Proof :
    • Caste Certificate : Mandatory for SC/ST, women, etc. (if seeking specific benefits).
  • Scheme-Specific Documents :
    • Farmer Pledge/Agreement to PGS : To confirm the farmer’s commitment to 3-year organic conversion and adherence to PGS-India standards.

Q. What if the cluster fails to maintain the contiguous land area or the minimum number of participating farmers?

A. The cluster formation is the foundation of the PKVY/PGS-India model. If the cluster size or contiguity is not maintained, it can lead to non-compliance with the scheme guidelines and potential discontinuation of financial assistance for the entire cluster.

Q. What if a farmer uses chemical inputs during the 3-year conversion period?

A. The scheme’s core requirement is a commitment to chemical-free farming. Any use of prohibited chemical inputs will likely result in the cancellation of the farmer’s organic status under PGS-India and the cessation of further financial support.

Q. How does a farmer receive their subsidy if their bank account isn’t Aadhaar-seeded or has a KYC issue?

A. Since the input subsidy (₹15,000/ha) is disbursed via DBT, an un-seeded or incorrectly linked bank account will cause the transfer to fail, resulting in a significant delay or non-receipt of funds until the issue is rectified with the bank.

Q. What is the recourse if the Regional Council (RC) delays in submitting the Annual Action Plan or fund utilization certificates?

A. Funds are released from the Centre to the State and then to the RCs based on approved action plans and prior utilization reports. Delays by the RC can halt the flow of subsequent installment funds to all farmers in the cluster.

Q. What if the organic produce does not find a profitable market after certification?

A. While the scheme includes components for marketing, value addition, and branding (₹4,500/ha), a major pitfall is the absence of a ready market or lack of consumer awareness. This could lead to farmers not realizing the premium price for their certified organic produce.

Q. What is “PGS-India certification” and why is it mandatory for PKVY?

A. PGS-India (Participatory Guarantee System for India) is a locally focused, mutual-trust-based, peer-driven certification system for organic produce. It’s mandatory for PKVY because the scheme uses this system to ensure the credibility of the organic produce grown by the cluster farmers, as it involves peer review and is less costly than third-party export certifications.

Q. What exactly does the ₹31,500 per hectare assistance cover?

A. The total assistance of ₹31,500/ha for 3 years is broken down: ₹15,000 for organic inputs (DBT to farmer), ₹9,000 for training and capacity building, ₹4,500 for marketing, value addition, and branding, and ₹3,000 for certification and residue analysis.

Q. I am an individual farmer; can I apply for PKVY alone?

A. No, PKVY is fundamentally a cluster-based scheme. You must join or help form a cluster of at least 50 farmers (or more, totaling 20 hectares/50 acres) under a Regional Council or an implementing agency to be eligible for assistance.

Q. How long do I have to wait to sell my produce as “organic”?

A. PKVY follows the PGS-India standards, which require a 3-year conversion period from conventional to organic farming. During this period, the land is typically classified as “In Conversion.” Only after the 36 months and successful certification can your produce be sold as certified organic.

Q. Can I enrol more than one hectare of my land in the scheme?

A. The financial assistance is capped at one hectare per farmer within the cluster. You can farm more land, but the subsidy component for organic inputs will only apply to the one-hectare limit.

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