PM Dhan Dhanya Krishi Yojana Explained: Farmers’ Benefits, Funding & Implementation.
Introduction
The Union Cabinet has given its nod to the PM Dhan Dhanya Krishi Yojana. This is a huge step to reshape the Indian agriculture sector. The scheme was announced in the Union Budget 2025–26 but is now a part of Cabinet approval in a budget that has an annual outlay of ₹24,000 crore for six years starting from 2025–26.
The Dhan Dhanaya Krishi Yojana will build on NITI Aayog’s aspirational districts program and will cover 100 low-performing districts to increase farm productivity through better irrigation, better storage, better access to credit, and increased sustainability.
What is the PM Dhan Dhanya Krishi Yojana?
The PM Dhan Dhaanya Krishi Yojana is a comprehensive agricultural program launched in the Union Budget 2025, aimed at enhancing productivity, promoting sustainable practices, and improving livelihoods for farmers in India.
- Dhan Dhayana Krishi Yojana merges 36 schemes from 11 Union Ministries to create a unified support system for agriculture.
- The initiative is inspired by the NITI Aayog’s Aspirational Districts Programme.
- PMDKY targets 100 underperforming districts that exhibit low productivity, moderate cropping intensity, and limited access to credit.
- The goal is to uplift 1.7 crore farmers through focused intervention.
- By emphasizing better irrigation, storage solutions, and improved credit availability, PMDKY addresses regional disparities in agricultural productivity.
This initiative plays a significant role in India’s economy, where agriculture employs nearly 45% of the workforce and is important for GDP and food security.
1. What is the District Selection Criteria?
The following are taken into consideration while selecting districts for the PM Dhan Dhanya Krishi Yojana scheme:
- Low Productivity: Districts with low agricultural productivity per hectare.
- Low Cropping Intensity: Areas with limited or few crop types or not enough cropping seasons per year.
- Low Credit Disbursement: Areas with limited funds available to farmers.
- Representation across states: The share of Net Cropped Area and size of operational holding will be taken into consideration.
There will be a minimum of one district from every state to ensure that each region is fairly represented.
2. What are Implementation and Monitoring?
- Plans for Agriculture and Allied Activities in Districts: Each district will develop a plan, through the District Dhan Dhaanya Samiti (DDDS), with progressive farmers and link it to important national goals including diversification of crops, saving water and food security (i.e., agricultural self-sufficiency).
- Monitoring and Evaluation: The progress will be measured using 117 Key Performance Indicators (KPIs) recorded on a dashboard and monthly review by the steering committee for successful planning and creation of agriculture district development.
- To facilitate initiation of agriculture district development, Central Government Nodal Officers will be appointed for every district.
- The NITI Aayog will continue to provide support and feedback about the progress made by districts as funds disbursed and expenditures have occurred.
- Committees on Different Levels: Committees will be created at the district, state and national levels. These committees will review and oversee the implementation of the scheme and its achievements.
3. What are the Expected Outcomes of the Dhan Dhanya Krishi Yojana?
The scheme aims to benefit approximately 1.7 crore farmers across India by integrating allied sectors such as livestock, dairy, and fisheries to enhance value and create local livelihoods. It emphasizes improvements in post-harvest storage and irrigation to optimize water use in agriculture. Additionally, the initiative focuses on providing easier access to credit for working capital and encourages diversification through natural and organic farming practices, ultimately fostering economic resilience in rural areas.
What are the Objectives of the Farmers Dhan Dhanya Krishi Yojana?
Below are the objectives of the PM Dhan Dhanya Krishi Yojana:
1. Increasing Agricultural Production: Encouraging better farm management practices and scientific solutions.
2. Cotton and Sustainable Farming Systems: Promoting climate-resilient crops to reduce dependence on water-dependent crops.
3. Developing Post-Harvest Infrastructure: Provide storage and processing levels at the Panchayat and Block levels.
4. Developing Irrigation Facilities: Promoting efficient irrigation technologies (drip and sprinkler).
5. Increasing Availability: Promoting short-term and long-term lending capacity to farmers.
Strategic Plan for Successful Execution of PM Dhan Dhanya Krishi Yojana
1. Selection of Target Districts: 100 districts with low productivity, generally low cropping intensity, and limited access to credit will be identified based on data from Ministry of Agriculture, NABARD, and Department of Financial Services.
2. Integrated Funding: Schemes such as RKVY, PMKSY, NFSM, SMAM will pool resources to achieve more efficient funding and impact.
3. Multi-Tiered Institutional Mechanism: There will be institutional arrangements for implementation and monitoring by Centre, States, and Districts.
4. Technology-based Agriculture: GIS mapping, AI-based advisory, blockchain for tracking the supply chain, micro-irrigation, and sensor-based monitoring will drive efficiency.
5. Improved Access to Credit: Expansion of the Kisan Credit Card (KCC), enabling agri-start-ups, and a stronger regional banking network will encourage inclusion of all farmers in the formal finance sector.
6. Farmers Empowerment: Training for Krishi Vigyan Kendras (KVKs) and Farmers Producer Organisations (FPOs). PMDDKY benefits farmers by enhancing their skills and knowledge delivery, and better market access.
7. Post-Harvest Infrastructure: The establishment of storage facilities, PPP models in agri-logistics, and agro-processing facilities will seek to provide farmers with better access to pre- and post-harvest management to reduce losses and achieve transformation.
8. Robust Monitoring and Evaluation: A Central Dashboard will be established for transparency, accountability, and real-time monitoring, as well as third-party validation and field visits.
Why does India Need Agricultural Reform?
1. Productivity Increase: More than 45% of the workforce is in agriculture, but even key crops like pulses and oilseeds are at relatively low productivity and contribute to India’s inability to increase food production to meet demand.
2. Climate Resilience: Climate change is increasing the variability of rainfall levels by 15-20% by 2050 and is affecting crop yields and food security.
3. Water Efficiency: Agriculture is 55% rain-fed with 38% water use efficiency; sustainable irrigation systems and water conservation are imperative.
4. Infrastructure Development: Inefficient storage and processing cause post-harvest losses of 35-40%, necessitating improvements to reduce loss and improve access to markets.
5. Creating Economic Empowerment in Rural Areas: There are just small farmers; smallholders account for 80% of farmers with an earning of ₹1.2 Lakh pr year. Transformations must occur to improve income and financial inclusion for small farmers.
What are the Challenges Faced in Agricultural Transformation?
The PM Dhan Dhanya Krishi Yojana, aims to address these challenges by promoting inclusive growth and empowering farmers through financial support, access to technology, and skill development. By integrating such initiatives, we can foster a more resilient agricultural framework that not only boosts productivity but also promotes sustainable practices and supports the livelihoods of farmers.
1. Prescribed Fund Allocation in a Timely Manner: Fund allocation prescribed in guidelines often does not happen on time, which leads to delays in implementation, with 50% of the funds constantly not utilised on the basis that there have been procedural delays.
2. State Specificity for Implementation: There are differences in the execution of a scheme between states, usually due to governance and implementation, as shown by the cases of Bihar and Uttarakhand. This leads to delays in implementing schemes by either state instituted norms and rules for implementation.
3. Climate Change and Climate Variability: Increasing climate change, with projected rain variability going to 15 – 20% higher rainfall variability by 2050, has an adverse effect on crop yields and productivity for agriculture and farmers.
4. Farmers’ Financial Literacy: With poor financial literacy, farmers would not become eligible to access credit, insurance, and even subsidies. When farmers use formal credit facilities or schemes, only 30% of farmers use formal credit.
4. Infrastructure: Lack of infrastructure for storage facilities, transportation, and processing facilities all leads to the loss of yield after harvest. As much as 35-40% of yield from fresh fruits and vegetables can be lost after harvest, especially in more isolated areas.
5. Shortage of Water and Agricultural Water Scarcity: 55% of Indian agriculture is rainfed, and weather conditions lead to predictable shortages of soil, water, and moisture. Irrigation utilisation efficiency is only 38%.
What are India’s Initiatives Promoting Agricultural Productivity in India?
This initiative helps ensure that farmers receive the financial assistance they need to adopt modern practices, invest in better technology, and ultimately contribute to sustainable agricultural growth.
1. Increased Budget Allocation for Agriculture: The agriculture budget surged from Rs 11,915 crore in 2008-09 to Rs 1,22,528 crore in 2024-25, enhancing investments in inputs, research, irrigation, and infrastructure.
2. Agricultural Infrastructure Fund (AIF): Launched in 2020, AIF has supported over 87,500 projects to improve post-harvest infrastructure like warehouses and cold chains, reducing crop losses and promoting high-value crops.
3. Crop Yield Improvements: From 2013-14 to 2023-24, key crop yields increased significantly: rice (19.3%), wheat (13.2%), maize (25.2%), and coarse cereals (71.5%).
4. Minimum Support Price (MSP) Enhancements: MSP revisions guarantee farmers at least 50% profit over production costs, encouraging investment in crop management.
5. e-NAM Integration: The electronic National Agriculture Market (e-NAM), with 1,410 mandis linked, has improved price discovery and encouraged the cultivation of high-yield crops.
6. Pradhan Mantri Fasal Bima Yojana (PMFBY): This crop insurance scheme promotes risk-taking and modern practices by covering crop failure risks.
7. Soil Health Cards: Over 25 crore Soil Health Cards have been issued, guiding farmers on fertiliser use to enhance yields while minimising chemical fertilisers.
8. Fertiliser Subsidies: A substantial allocation of over Rs 1.67 lakh crore in 2025-26 for fertilizer subsidies constitutes nearly 70% of the agriculture budget.
9. Institutional Credit Expansion & Kisan Credit Card (KCC): Short-term agricultural credit grew from Rs 6.4 lakh crore in 2014-15 to Rs 15.07 lakh crore in 2023-24, enhancing farmers’ access to necessary inputs. As of 2024, there are 7.75 crore active KCC accounts, totaling ₹9.81 lakh crore in loans.
Conclusion
The PM Dhan Dhanya Krishi Yojana represents an unprecedented leap in redefining the agricultural landscape of India. The initiative aims to foster sustainability and resiliency through improvements in: productivity, infrastructure, and financial inclusion, which will help lift 1.7 crore farmers and promote India’s rural economy.
Frequently Asked Questions
The hope is that the scheme will generate enhanced productivity, value addition in agriculture and related sectors, local livelihood generation, resulting in more domestic production and self-reliance. This convergence of schemes must be perceived in the context of diminishing public resource allocation to agriculture.
The scheme was approved on July 16, 2025, and focuses on 100 low-performing agri-districts where ₹24,000 crore will be allocated annually for 6 years. and is primarily concerned with improving productivity, encouraging crop diversification, improving irrigation and storage, etc., and access to credit strictly for agriculture and allied activities.
● Approved on July 16, 2025, the scheme will cover 100 underperforming agri-districts with an annual outlay of ₹24,000 crore for 6 years.
● The scheme focuses on enhancing productivity, diversifying crops, improving irrigation and storage, and increasing access to credit.