The PM Dhan Dhaanya Krishi Yojana aims to enhance agricultural productivity and farmer welfare through scheme consolidation, targeted support, technology, and infrastructure development over six years, benefiting small farmers.

Why in the News?

The Prime Minister launched The Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDDKY) initiative to revolutionize Indian agriculture by making it more productive, sustainable, and financially rewarding for farmers.

About PM Dhan Dhaanya Krishi Yojana (PMDDKY)

It was announced during the Union Budget 2025-26 and draws inspiration from NITI Aayog's Aspirational District Programme.

List of key objectives of the PMDDKY scheme

It consolidates 36 existing agricultural schemes across 11 ministries, including PM-KISAN (cash transfers), PMFBY (crop insurance), PMKSY (irrigation), with multiple benefits (refer table).
- The convergence will also include state schemes and local partnerships with the private sector.
Aim: To support 1.7 crore farmers, particularly small and marginal farmers owning less than 2 hectares of land, who constitute 86% of India's farming population (Economic Survey 2024-25).
Ministry: Ministry of Agriculture and Farmers' Welfare.
Duration: 6 Years (2025-26 to 2030-31).
Financial Outlay: Annual budget of ₹24,000 crore for 6 years, totaling ₹1.44 lakh crore.
- 40% for subsidies, 30% for infrastructure (storage, irrigation), 20% for loans, and 10% for training and market support.
Coverage: 100 underperforming districts with low crop yields, water scarcity, and limited access to resources. (minimum of 1 district from each state).
- Uttar Pradesh to have maximum 12 districts in scheme.
Focus: On regions with low crop yields (e.g., wheat yields below 3.5 tonnes/hectare national average), moderate cropping intensity (fewer than 1.55 crop cycles per year), and limited access to credit.
Beneficiaries: Small and Marginal Farmers, Women Farmers, Young Farmers adopting modern farming techniques/starting agribusinesses/value-added product ventures, Farmers in Low-Productivity Areas, Farmer Producer Organizations (FPOs), Allied Sector Workers.
Significance of Consolidation of agricultural schemes under PMDDKY: It will resolve Duplication & inefficiency.
- 45% of capital expenditure in agriculture is actually utilized for asset formation, indicating low expenditure efficiency.
- Sectors like water supply, transport, etc., allocate more than 75% of capital towards asset formation.

Key Benefits and their impacts
Aspect	Benefit	Impact
Crop Yields	50-80% discounts on high-yielding seeds, bio-fertilizers, and equipment like drip irrigation systems	20-30% more output
Financial aid	Short Term Loans: ₹50,000–₹1 lakh at 4-7% interest through Kisan Credit Cards for immediate needs like seeds, fertilizers, or pesticides	20-40% profit increase Affordable inputs, investment
Financial aid	Long Term loans: ₹1–10 lakh for capital investments such as tractors, storage units etc.	20-40% profit increase Affordable inputs, investment
Storage	Free or low-cost use of village and block-level warehouses and cold storage	Saves 20% of crops
Irrigation	Subsidized drip and sprinkler systems	Saves 30-50% water
Market Access	Free access to digital platforms like e-NAM or new PMDDKY apps for direct sales to buyers	Higher prices, no middlemen
Modern skills, global exposure	Free workshops by KVKs, agricultural universities, and private partners on organic farming, mechanization, and allied activities. Fully funded international trips for 500 farmers to learn advanced techniques in countries like Israel (drip irrigation), Japan (precision farming), etc.	Modern skills, global exposure

Structural Design and Institutional Mechanism of the scheme

National level: Oversight from a National Steering Committee
- Two teams to be formed at the central level: One under Union Ministers and another under Secretaries and department officers.
State level: Nodal committees
District level: District Dhan Dhaanya Samitis led by District Collectors.
- District-level plans will be prepared by district collectors with support from agricultural universities and NITI Aayog.
- Use of digital dashboard, farmer app, and district ranking system (117 Key Performance Indicators (KPIs)) to ensure transparency.
- Central Nodal Officers appointed for each district to conduct regular field visits, monitor progress, and coordinate with local teams.

Conclusion

The PM Dhan Dhaanya Krishi Yojana ensures scheme convergence, data-driven planning, and resource optimisation, fostering integrated agricultural growth, productivity enhancement, and farmer welfare through holistic, sustainable, and technology-enabled rural transformation.