Government Merges 36 Schemes to Float a Farm Plan

Why in the News? 

The Union Cabinet has approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) to enhance agricultural productivity and promote sustainable practices. Announced in the Union Budget 2025–26, this flagship scheme merges 36 schemes across 11 ministries into a single comprehensive agricultural development framework, with an annual outlay of ₹24,000 crore for six years.

Background

• Indian agriculture continues to face challenges such as fragmented holdings, low productivity, unsustainable practices, and climate vulnerability.
• Despite multiple schemes across ministries, duplication and lack of convergence have led to inefficiencies.
• In this context, PMDDKY is modelled after the Aspirational District Programme, aiming to address underperformance in agriculture through targeted, decentralised, and holistic planning.
• It is an attempt to integrate post-harvest management, irrigation, credit access, natural farming, and value addition into one unified scheme.

Features of the Scheme

Convergence of 36 Schemes:

• From 11 different Ministries/Departments into one umbrella scheme.
  Ensures synergy in implementation and reduces administrative overlap.

Outlay and Duration:

• ₹24,000 crore annually for 6 years starting 2025–26.
  Expected to benefit 1.7 crore farmers.

Geographical Targeting:

• 100 districts selected based on:
• Low agricultural productivity
• Low cropping intensity
• Low credit disbursement
• At least one district from each State/UT.
• Allocation based on Net Cropped Area and operational holdings

District-Level Planning:

• District Dhan Dhaanya Samitis to formulate the District Agriculture and Allied 
• Activities Plans (DAAAP).
• Involvement of progressive farmers for grassroots insights.

Focus Areas:

• Post-harvest storage infrastructure at the panchayat/block levels
• Improved irrigation and water-use efficiency
• Expansion of natural and organic farming
• Encouragement of crop diversification
• Enhancing credit access and financial inclusion
• Monthly monitoring of progress

Public-Private Convergence:

• Encourages local partnerships with the private sector and State schemes for innovation and efficiency.

Significance

• Holistic Rural Development: Moves beyond input subsidies to integrated value-chain support.
• Sustainability: Emphasis on soil health, water conservation, and climate-resilient farming.
• Decentralisation: Customised planning at the district level ensures need-based interventions.
• Alignment with National Priorities: Self-sufficiency, doubling farmer incomes, and Atmanirbhar Bharat goals.

Way Forward

Refinement of District Selection Criteria:

• As per experts, relying on low credit disbursement could misidentify districts.
  Instead, use net agricultural income per hectare as a more appropriate indicator of distress.

Ensure Implementation Capacity:

• District and State-level committees must be equipped with technical and administrative support.
• Prevent delays due to inter-departmental coordination.

Focus on Outcome-Based Monitoring:

• Go beyond financial outlays to track yield improvements, water use efficiency, and income diversification.

Incentivise Innovation and Agro-Industries:

• Use private partnerships to set up agri-processing, storage and logistics chains in targeted districts.

Farmer-Centric Approach:

• Promote capacity building, digital literacy, and awareness about climate-smart practices.

Institutionalise Feedback Loops:

• Regular consultation with local farming communities and stakeholders to refine implementation.

Conclusion

The PM Dhan-Dhaanya Krishi Yojana marks a paradigm shift in India’s farm policy by replacing fragmented schemes with a coordinated, targeted, and sustainable framework. Its success will depend on the granular implementation at the district level, active stakeholder engagement, and outcome-based monitoring. If executed effectively, it can become a template for agriculture-led rural transformation in India.

MAINS PRACTICE QUESTION

Question: Discuss the key objectives and features of the PM Dhan-Dhaanya Krishi Yojana. How can the scheme contribute to enhancing agricultural productivity and sustainability in India?

PRELIMS PRACTICE QUESTION