Explainer - Pradhan Mantri Dhan Dhaanya Krishi Yojana

Prime Minister Narendra Modi launched ‘Pradhan Mantri Dhan Dhaanya Krishi Yojana’ in a special event at the Indian Agricultural Research Institute (IARI) Pusa campus in New Delhi on October 11.

Highlights of the scheme:

• PM Dhan Dhaanya Krishi Yojana (PMDDKY) is an initiative launched to revolutionise Indian agriculture by making it more productive, sustainable, and financially rewarding for farmers. 

• It was first announced on February 1, 2025 during the Union Budget by Finance Minister Nirmala Sitharaman and approved by the Union Cabinet on July 16.

• PMDDKY targets 100 underperforming districts where farming faces challenges like low crop yields, water scarcity, and limited access to resources. 

• It has an annual budget of Rs 24,000 crore for six years (2025-26 to 2030-31).

• The scheme aims to support 1.7 crore farmers, particularly small and marginal farmers owning less than two hectares of land, who constitute 86 per cent of India’s farming population.

• PMDDKY consolidates 36 existing agricultural schemes across 11 ministries, including PM-KISAN (cash transfers), Pradhan Mantri Fasal Bima Yojana  (crop insurance), Pradhan Mantri Krishi Sinchayee Yojana (irrigation), and Rashtriya Krishi Vikas Yojana (RKVY), into a unified program to streamline efforts and maximise impact. 

• Drawing inspiration from NITI Aayog’s Aspirational Districts Programme (ADP), which transformed 112 underdeveloped districts in health, education, and infrastructure, PMDDKY focuses on regions with low crop yields. 

• By providing irrigation, storage, loans, training, and modern technology support, PMDDKY seeks to boost farmer incomes, and ensure food security. 

• The scheme operates under the Ministry of Agriculture and Farmers’ Welfare, with oversight from a National Steering Committee, state-level nodal committees, and District Dhan Dhaanya Samitis led by district collectors. 

• These bodies ensure tailored implementation based on local needs, monitored through a digital dashboard tracking 117 Key Performance Indicators (KPIs) like crop yields, loan disbursals, and storage usage. 

PMDDKY’s objectives:

i) Increase crop yields by 20-30 per cent through high-quality inputs and technology.

ii) Reduce reliance on monsoons with advanced irrigation systems like drip and sprinkler.

iii) Provide affordable tools and mechanisation to enhance efficiency.

iv) Build storage infrastructure to cut post-harvest losses to under 5 per cent.

v) Offer loans and direct market access to double farmer incomes by 2030, aligning with the government’s extended goal from 2022 due to economic disruptions like COVID-19.

vi) Promote sustainable practices like organic farming to protect soil and water resources.

vii) Support women, youth, and allied sectors (dairy, fisheries, poultry) to diversify income sources.

viii) Achieve self-sufficiency in foodgrains, pulses and oilseeds to reduce India’s dependence on imports.