PM Dhan-Dhaanya Krishi Yojana | 19 Jul 2025
For Prelims: Union Budget 2025–26, Aspirational Districts Programme, Minimum Support Price, Agricultural Infrastructure Fund
For Mains: Government schemes for agricultural development, Data-driven governance in rural transformation, Agricultural infrastructure and value chain development
Why in News?
The Union Cabinet has approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY), a major initiative aimed at transforming Indian agriculture. Originally announced in the Union Budget 2025–26, the scheme has an annual outlay of Rs 24,000 crore for six years, starting from 2025–26.
- PMDDKY, inspired by NITI Aayog’s Aspirational Districts Programme, targets 100 underperforming districts to boost farm productivity through improved irrigation, storage, credit access, and sustainable practices.
What is the PM Dhan-Dhaanya Krishi Yojana?
- About: PMDDKY is a comprehensive farm programme designed to enhance productivity, promote sustainable practices, and improve livelihoods.
- It merges 36 schemes from 11 Union Ministries to create a unified agricultural support system.
- The scheme is inspired by NITI Aayog’s Aspirational Districts Programme, PMDDKY targets 100 underperforming districts to boost farm productivity through better irrigation, storage, and credit access while promoting sustainable practices.
- District Selection Criteria:
- Low Productivity: Districts with low agricultural output per hectare.
- Low Cropping Intensity: Regions with limited crop variety or insufficient crop cycles per year.
- Low Credit Disbursement: Areas with limited access to financial resources for farmers.
- Representation Across States: The selection will consider the share of Net Cropped Area and operational holdings in each state/union territory.
- A minimum of one district will be selected from each state to ensure balanced regional development.
- Implementation and Monitoring:
- District Agriculture and Allied Activities Plans: Each district will prepare a plan through the District Dhan Dhaanya Samiti, involving progressive farmers, aligned with national goals like crop diversification, water conservation, and agricultural self-sufficiency.
- Monitoring and Evaluation: Progress will be tracked through 117 Key Performance Indicators (KPIs) using a dedicated dashboard, with monthly reviews.
- Central Nodal Officers will be appointed for each district to ensure smooth implementation. NITI Aayog will guide and review district plans regularly.
- Committees at Various Levels: Committees at the district, state, and national levels will oversee planning, implementation, and progress monitoring to ensure the scheme’s effectiveness.
- Expected Outcomes: 1.7 crore farmers across India are expected to benefit directly.
- The scheme integrates allied sectors like livestock, dairy, and fisheries to add value and create local livelihoods. It focuses on post-harvest storage, improved irrigation, easier credit access, and promotes natural and organic farming, enhancing rural economic resilience.
Aspirational Districts Programme (ADP)
- Launch: Initiated in 2018 by the Government of India to uplift 112 of the most underdeveloped districts.
- Focus Areas: Health, nutrition, education, infrastructure, and economic opportunities.
- Key Principles and Approach:
- 3Cs Framework:
- Convergence: Coordination between various central and state schemes.
- Collaboration: Involvement of district, state, and national agencies.
- Competition: Healthy competition among districts to drive development.
- Data-Driven Governance: Progress is tracked using a public platform, the Champions of Change Dashboard, which monitors 49 indicators across five areas.
- 3Cs Framework:
- Monitoring: The Champions of Change Dashboard monitors progress across 49 indicators, focusing on real-world issues such as infant mortality, school dropout rates, sanitation, and crop productivity.
- Unlike traditional rankings, ADP employs the delta ranking system that measures the pace of progress, motivating districts to compete against their own past performances.
- Success Stories:
- Chamba, Himachal Pradesh: Once a symbol of rural deprivation. In February 2022, it became the 100th district to achieve “Har Ghar Jal” status, providing every household with clean tap water.
- The district also saw 100% coverage under Pradhan Mantri Jan Dhan Yojana (PMJDY), ensuring financial inclusion.
- Notable District Successes: By 2019, 8 districts moved from Tier IV to Tier I showcasing significant improvement in agriculture, health, and infrastructure.
- Andhra Pradesh stood out, with 2 of its 3 Aspirational Districts ranking in the top 10, showing strong sectoral progress.
- Chamba, Himachal Pradesh: Once a symbol of rural deprivation. In February 2022, it became the 100th district to achieve “Har Ghar Jal” status, providing every household with clean tap water.
- Global Recognition of ADP: Singapore’s highlighted ADP as a "globally relevant model" for empowering communities and strengthening local health systems.
- The ADP’s emphasis on localized, inclusive governance has been recognized as a model that can be replicated in other developing countries.
What are India's Initiatives Promoting Agricultural Productivity in India?
- Increased Budget Allocation for Agriculture: The sharp rise in the agriculture budget from Rs 11,915 crore in 2008-09 to Rs 1,22,528 crore in 2024-25 has enabled greater investment in inputs, research, irrigation, and infrastructure, all of which contribute to higher productivity.
- Agricultural Infrastructure Fund (AIF) launched in 2020, has supported over 87,500 projects, boosting post-harvest infrastructure such as warehouses and cold chains. This has helped reduce crop losses and encouraged the cultivation of high-value crops.
- Crop Yield Improvements: Between 2013-14 and 2023-24, yields for key crops like rice, wheat, maize, and pulses saw notable increases.
- For instance, crop yields rose with rice (19.3%), wheat (13.2%), maize (25.2%) and coarse cereals (71.5%).
- Minimum Support Price (MSP) Enhancements: MSP revisions, ensuring at least 50% profit over the cost of production, have encouraged farmers to invest more in inputs and better crop management, indirectly supporting productivity.
- e-NAM Integration and Market Access: Better price discovery through electronic National Agriculture Market (e-NAM) (1,410 mandis linked) has incentivized farmers to adopt higher-yield crops and improve quality.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop insurance under PMFBY encourages risk-taking and adoption of modern practices. Farmers are more likely to invest in better technologies if crop failure risks are covered.
- Soil Health Cards: Over 25 crore Soil Health Cards have been distributed, helping farmers use the right fertilisers and improve crop yields while reducing harmful chemical use.
- Fertiliser Subsidies: For 2025–26, the government allocated over Rs 1.67 lakh crore for fertiliser subsidies, making up nearly 70% of the agriculture budget and 40% of total subsidy spending.
- Institutional Credit Expansion & Kisan Credit Card (KCC): The growth in short-term agri credit from Rs 6.4 lakh crore (2014-15) to Rs 15.07 lakh crore (2023-24) has given farmers better access to inputs like fertilizers, quality seeds, and machinery, all of which support productivity.
- As of 2024, there are 7.75 crore active KCC accounts with ₹9.81 lakh crore in loans.
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Drishti Mains Question: Discuss how the Prime Minister Dhan-Dhaanya Krishi Yojana aims to transform agriculture in underperforming districts. |
UPSC Civil Services Examination, Previous Year Question (PYQ)
Mains
Q. Explain various types of revolutions, took place in Agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (2017)
Q. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)