Why in News?
The Union Cabinet approved the “Prime Minister Dhan-Dhaanya Krishi Yojana”, or PMDDKY, to enhance agricultural productivity and increase adoption of sustainable agricultural practices across the country. PM Dhan-Dhaanya Krishi Yojana (PMDDKY) is a flagship initiative aimed at transforming Indian agriculture. Announced in the Union Budget 2025–26, the scheme focuses on enhancing productivity and promoting sustainable farming.
Introduction
On 16th July 2025, the Union Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) — a major initiative aimed at transforming India’s agricultural landscape. First announced in the Union Budget 2025–26, this scheme focuses on driving growth in 100 agri-districts by bringing together 36 Central schemes from 11 different Ministries in a well-coordinated, saturation-based approach. With a budget of ₹24,000 crore per year for the next six years starting FY 2025–26, it also includes state-level schemes and local partnerships with private players. Instead of launching new schemes, PMDDKY ensures better coordination and last-mile delivery of existing programmes, reducing overlap and increasing their impact on farmers.
Introduction
On 16th July 2025, the Union Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) — a major initiative aimed at transforming India’s agricultural landscape. First announced in the Union Budget 2025–26, this scheme focuses on driving growth in 100 agri-districts by bringing together 36 Central schemes from 11 different Ministries in a well-coordinated, saturation-based approach. With a budget of ₹24,000 crore per year for the next six years starting FY 2025–26, it also includes state-level schemes and local partnerships with private players. Instead of launching new schemes, PMDDKY ensures better coordination and last-mile delivery of existing programmes, reducing overlap and increasing their impact on farmers.
Major Highlights
- Approved on July 16, 2025, the scheme targets 100 low-performing agri-districts with an annual outlay of ₹24,000 crore for 6 years.
- It aims to enhance productivity, promote crop diversification, improve irrigation and storage, and ensure credit access. The focus will be exclusively on agriculture and allied activities.
- The scheme ensures saturation-based convergence of 36 schemes from 11 ministries, benefiting 1.7 crore farmers directly.
- District-level plans will be prepared by district collectors with support from agricultural universities and NITI Aayog.
- A digital dashboard, farmer app, and district ranking system will ensure transparency, access, and accountability.
Objectives of PM Dhan-Dhaanya Krishi Yojana
The PMDDKY aims to serve as a multi-dimensional rural development intervention. Its five core objectives are:
- Enhancing agricultural productivity:
- This means helping farmers grow more crops using the same or fewer resources. It involves using better-quality seeds, modern farming techniques, improved soil health practices, and access to advanced machinery and technology. The goal is to increase crop output, reduce input costs, and raise farmers’ incomes.
- Encouraging crop diversification and sustainable agricultural practices:
- Instead of depending only on traditional crops like wheat and rice, this objective promotes growing a variety of crops such as fruits, vegetables, pulses, oilseeds, and millets. It also encourages eco-friendly farming methods that protect soil, reduce chemical use, and preserve natural resources, ensuring long-term farm health and resilience to climate change.
- Augmenting post-harvest storage capacity at panchayat and block levels:
- This focuses on building or improving storage facilities close to the farms so that farmers can store their produce safely after harvesting. With proper storage at the village (panchayat) and sub-district (block) levels, farmers can avoid distress sales, reduce wastage, and sell their produce when prices are better.
- Improving irrigation infrastructure for reliable water access:
- This means developing and upgrading systems like canals, tube wells, drip and sprinkler irrigation to ensure that farmers have dependable and timely water supply for their crops. Reliable irrigation reduces dependence on rainfall, improves crop yields, and enables year-round farming.
- Enabling greater access to short-term and long-term agricultural credit for farmers:
- This objective aims to make it easier for farmers to get loans. Short-term credit helps them meet seasonal needs like buying seeds and fertilizers, while long-term credit is used for investments like tractors, irrigation systems, or setting up storage units. Easier access to affordable credit helps farmers grow their businesses and reduce dependence on informal lenders.
These objectives aim not only to improve farm incomes but also to ensure climate-resilient and market-oriented farming systems.
Targeted Districts: Criteria and Selection
- The scheme identifies 100 districts based on:
- Low productivity
- Low cropping intensity
- Less credit disbursement
The number of districts chosen from each state or Union Territory will depend on their share of Net Cropped Area and operational land holdings. However, to ensure fair representation, at least one district from every state will be selected. These selected districts will serve as the main focus areas for agricultural reforms that are driven by the convergence of schemes, and the strategies used will be customised to fit each district’s agro-climatic conditions and cropping patterns.
District-Level Planning and Implementation
Each selected district under PMDDKY will establish a District Dhan-Dhaanya Krishi Yojana (DDKY) Samiti, chaired by the District Collector or Gram Panchayat. This committee will include progressive farmers and departmental officers to ensure a broader representation. The DDKY Samiti will prepare a District Agriculture & Allied Activities Plan through:
- Extensive stakeholder consultations
- Understanding the cropping pattern and allied activities
- Analysis of local agro-ecological conditions
- Alignment with national priorities such as:
- Crop diversification
- Soil and water conservation
- Expansion of natural and organic farming
- Self-sufficiency in agriculture and allied sectors
These plans will guide the coordinated implementation of all converging schemes in the district. The progress of each Dhan-Dhaanya district will be tracked using 117 Key Performance Indicators (KPIs) on a central monitoring dashboard, reviewed monthly to assess performance, highlight gaps, and promote accountability.
Multi-Tier Governance
The scheme will be governed through a three-tier implementation structure:
- District-level committees
- State-level steering groups
- National-level oversight bodies
Teams similar to the ones at the district level will also be formed at the state level, with the responsibility of ensuring effective convergence of schemes in districts. Two teams will be formed at the central level: one under Union Ministers, and another under Secretaries and department officers. Each level will ensure strategic planning, execution, and issue resolution.
To bolster on-ground oversight, Central Nodal Officers will be appointed for each district to conduct regular field visits, monitor progress, and coordinate with local teams.
Institutional and Knowledge Support
To ensure effective implementation, PMDDKY will involve key institutions for support:
- NITI Aayog will have a central role in the scheme by providing:
- Strategic guidance
- Training and capacity-building for officials at the state and district levels
- Tracking progress at the district level
- Developing a dashboard to monitor how the scheme is performing
- Reviewing and advising on district-level plans
- In addition, each selected district will be linked with a Central or State Agricultural University, which will serve as a technical knowledge partner.
This partnership between government bodies, academic institutions, and on-ground agencies ensures that the scheme is locally relevant, scientifically guided, and focused on achieving real results.
Digital Ecosystem for Monitoring and Farmer Support
Targeted Results
A major point to note is that this scheme will focus on fruits, fisheries, beekeeping, animal husbandry, and agroforestry, not just crop agriculture. By leveraging scale, technology, and institutional strength, the scheme is poised to be a game changer in rural transformation. The scheme will result in:
- Higher productivity,
- Value addition in agriculture and allied sector,
- Local livelihood creation,
- Increase in domestic production,
- Achieving self-reliance (Atmanirbhar Bharat).
Conclusion
The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) combines the strengths of convergence of schemes, local-level planning, and real-time monitoring to address some of the long-standing problems in Indian agriculture. With a strong financial backing of ₹24,000 crore every year for six years, and the involvement of NITI Aayog, agricultural universities, and 11 central ministries, the scheme focuses on uplifting 100 districts that currently have low productivity, moderate crop density, and limited access to credit. The goal is to build strong and sustainable rural livelihoods and fulfill the vision of “Sabka Saath, Sabka Vikas” in the agriculture sector.
