PM Dhan-Dhaanya Krishi Yojana: Objectives and Key Benefits
Gajendra Singh Godara
Oct 21, 2025
10
mins read
Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is India’s first flagship agricultural transformation scheme, launched in 2025. Inspired by NITI Aayog’s Aspirational Districts Programme, it targets 100 underperforming districts to boost productivity through improved irrigation, storage infrastructure, credit access, and sustainable farming practices.
Announced in the Union Budget 2025–26, PMDDKY spans six years (2025–26 to 2030–31) with an estimated annual outlay of ₹24,000 crore. Rather than a separate allocation, this outlay reflects the convergence of 36 existing schemes from 11 Union ministries into a unified support framework.
The PM Dhan-Dhaanya Krishi Yojana aims to enhance agricultural output through integrated farm development programmes in under-performing regions.
Referring to the wealth of grains, the vision is to enhance crop productivity, and farmer income, as well as the overall agricultural prosperity of the selected districts.
PMDDKY is a comprehensive agricultural initiative that boosts farm productivity, fosters sustainable practices, and improves farmer livelihoods. It integrates 36 existing schemes from 11 Union ministries into a single, unified support framework.
Based on the “saturation approach” to all aspects of agriculture, the programme aims to fully support all districts that fall under the NITI Aayog framework of “aspirational districts”.
Designed to extend over a 6 year period up until 2031, the programme is optimally expected to support agricultural growth in the “aspirational districts”.
It is classified under the agricultural development inclusion schemes alongside rural development, and maintains its significance as part of PM Dhan-Dhaanya Krishi Yojana UPSC when addressing integrated development schemes.
Increase agricultural productivity with quality seeds, modern inputs, and effective integrated farming system practices.
Encourage crop diversification to enhance farmers' income and maintain long-term viability.
Advocate climate-resilient precision farming with planning focused on soil and water resources.
Extend irrigation facilities and improve post-harvest storage systems to minimize losses and enhance market access.
Provide small and marginal farmers with access to agricultural credit, both short-term and long-term.
Encourage income diversification through allied activities like dairy, fisheries, and livestock.
Build warehouses and cold‑storage units at district and block levels to cut post‑harvest losses to below 5 %, improving farmers’ incomes. The scheme is expected to directly benefit 1.7 crore farmers.
Focus on achieving self‑reliance in food grains, pulses, and oilseeds to reduce India’s import dependency and strengthen food security.
In India, a hundred low-performing agricultural districts have been identified. The criteria for the districts are:
Low productivity: Districts lagging behind the state or national yield averages are prioritised.
Moderate or low cropping intensity: Districts with fewer crop cycles per year than the national average (typically below 1.55, i.e., 155% cropping intensity) are chosen.
Less credit disbursement: Districts where a low proportion of farmers have access to institutional credit or Kisan Credit Cards (usually below 30%) are included.
Other Criteria:
Geographical balance: At least one district from every state and Union Territory, to ensure nationwide coverage and fair representation.
Socio-economic vulnerabilities: Some sources mention areas facing higher rural poverty or other vulnerabilities are also given priority.
Net cropped area and operational landholdings: District share is also proportional to their share in net cropped area and number of operational holdings.
Low agri-infrastructure: Districts identified also often show underdeveloped market, storage, or irrigation infrastructure.
Follows a convergence model and combines agricultural and rural development schemes from 11 Central ministries.
In these selected districts, an implementing District Dhan Dhaanya Samiti (DDS) (composed of government officials, agronomists, and progressive farmers) is formed.
National goals of irrigation, crop diversification, and climate change resilience are recorded in the District Agriculture Plan.
Irrigation, credit, and crop yield are some of the 117 Key Performance Indicators (KPIs) used to monitor progress.
Central Nodal Officers are assigned to each district to oversee and coordinate.
NITI Aayog and the Ministry of Agriculture provide policy and strategic oversight.
The Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDDKY) draws significant inspiration from the Aspirational District Programme (ADP), sharing its core principles of convergence, monitoring, and fostering competition among districts to accelerate development.
However, a key distinction lies in their focus areas: while ADP covers a broad spectrum including health, education, and infrastructure, PMDDKY is dedicated exclusively to agricultural advancement and allied sectors.
PMDDKY complements several existing schemes effectively to provide holistic support to farmers:
PM-Kisan: Offers direct income support to small and marginal farmers, ensuring financial stability.
PM Fasal Bima Yojana (PMFBY): Provides comprehensive crop insurance, safeguarding farmers against natural calamities.
Agricultural Infrastructure Fund (AIF): Facilitates low-cost financing for building crucial agri-infrastructure like warehouses and cold storages.
eNAM (Electronic National Agriculture Market): Helps farmers access wider markets digitally, reducing intermediaries and enhancing profitability.
The scheme encourages integrated planning, combining efforts to improve irrigation, post-harvest storage, and market linkages, maximizing the impact of government investments.
Finally, the approach of PMDDKY is designed to be replicable, providing a model for other rural development initiatives aimed at boosting farming productivity and livelihood across India.
Higher Productivity at Village Level: Supports local farmers with quality seeds, balanced nutrients, and mechanized tools, helping close the yield gap between the best and worst districts.
Wider Market Opportunities: Connects farmers to e-trading, local buyers, and food processors using tech—empowering them to choose the right price and buyers for their produce.
Women-Led Rural Progress: Invests in thousands of women farmer groups, providing collective loans, coaching, and access to value chains in dairy, food processing, and organics.
Eco-Friendly Farm Practices: Promotes organic inputs, mulching, and water-saving irrigation to keep soil healthy and conserve resources for future generations.
Affordable Credit and Subsidies: Offers simple access to finance—so that timely loans and upfront subsidies mean farmers aren’t stuck waiting for investments in their fields.
Hands-On Learning and Modern Skills: Regular training for farmers in new techniques, including drone spraying, crop monitoring, and integrated pest management, making rural youth job-ready.
Prelims
Q. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? [2020]
Working capital for maintenance of farm assets
Purchase of combine harvesters, tractors and mini trucks
Consumption requirements of farm households
Post-harvest expenses
Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
1, 2 and 5 only
1, 3 and 4 only
2, 3, 4 and 5 only
1, 2, 3 and 4
Answer: (b)
Mains
Q. Mention core strategies for the transformation of aspirational districts in India and explain the nature of convergence, collaboration and competition for its success (2018)
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)
Prime Minister Dhan-Dhaanya Krishi Yojana is a flagship initiative for Financial Inclusion, Access to Credit, Insurance, and Modern Agri-Tech for small and marginal farmers. The scheme provides Digital Advisory Services, IoT Enabled Irrigation, and AI Monitored Farming. This helps in optimally utilizing resources and increasing productivity.
The initiative strengthens support to allied sectors like dairy, poultry, and fisheries, through convergence with existing agri programs like PM-Kisan and PMFBY. With its focused approach on sustainability and empowerment, PMDDKY plays a key role in realizing the vision of Atmanirbhar Bharat, promoting self-reliance, food security, and inclusive growth for all farmers across India.
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