Why in the News?

Finance Minister Nirmala Sitharaman while presenting the Union Budget on February 1 announced the launch of the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY).

What’s in Today’s Article?

• Introduction (Context of the Article)
• About PMDKY (Key Objectives, Implementation Strategy, Additional Measures, Impact, Challenges, etc.)

Introduction:

• The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY) is a major agricultural initiative launched under the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman.
• The scheme aims to improve agricultural productivity, irrigation, crop diversification, and financial access for farmers across 100 districts with low productivity, moderate crop intensity, and below-average credit parameters.
• This initiative follows the success of the Aspirational Districts Programme (ADP) and aligns with the government’s goal of strengthening rural prosperity, boosting farm incomes, and enhancing self-sufficiency in food production.

Objectives of PM Dhan-Dhaanya Krishi Yojana:

• Enhancing Agricultural Productivity – Improving farming efficiency through modern technology and better land utilization.
• Promoting Crop Diversification – Encouraging farmers to grow multiple crops for better income stability.
• Strengthening Post-Harvest Infrastructure – Establishing storage and processing units at the Panchayat and Block levels.
• Improving Irrigation Facilities – Expanding irrigation infrastructure to reduce dependence on rainfall.
• Facilitating Credit Access – Providing long-term and short-term agricultural loans to farmers for investment in better farming practices.
• It is expected to benefit 1.7 crore farmers across the selected districts.

Implementation Strategy:

• Selection of 100 Target Districts – The scheme will cover 100 districts based on the following parameters:
  • Low productivity – Areas with below-average agricultural output.
  • Moderate cropping intensity – Regions where farming cycles can be optimized.
  • Limited credit access – Districts with low financial inclusion in agricultural loans.
  • The Ministry of Agriculture & Farmers’ Welfare, in collaboration with NABARD and the Department of Financial Services, will identify these districts based on data analysis of farm credit, cropping intensity, and land productivity.
• Financial Support and Convergence of Existing Schemes
  • PMDKY does not have a standalone budget allocation but will be funded through the convergence of existing agricultural schemes under:
    • Ministry of Agriculture & Farmers’ Welfare
    • Ministry of Fisheries, Animal Husbandry & Dairying
• Rural Prosperity and Resilience Programme
  • To address underemployment in agriculture, the government has introduced a multi-sectoral Rural Prosperity and Resilience Programme. This will focus on:
    • Skilling rural youth & farmers
    • Investments in agricultural infrastructure
    • Technology-driven solutions for higher farm output
    • Encouraging rural entrepreneurship

Additional Measures Under PMDKY:

• Aatmanirbharta in Pulses
  • A new six-year mission for self-sufficiency in pulses will focus on crops like Tur, Urad, and Masoor. Strategies include:
    • Developing climate-resilient seeds
    • Enhancing protein content in pulses
    • Ensuring procurement and remunerative prices
  • NAFED and NCCF will buy pulses from farmers under guaranteed agreements for the next four years.
• Comprehensive Programme for Vegetables & Fruits
  • A new initiative will support increased production, better supply chains, and processing of vegetables and fruits.
  • Focus will be on promoting Shree-Anna (millets) for better nutrition.
  • Farmer Producer Organizations (FPOs) and cooperatives will play a key role.
• Grameen Credit Score for Financial Inclusion
  • Public Sector Banks (PSBs) will introduce a Grameen Credit Score
  • This will help Self-Help Group (SHG) members and rural farmers access affordable loans.

Expected Impact of PMDKY:

• Boosting Agricultural Growth
  • Increased farm output through better crop management and irrigation.
  • Higher income stability for farmers with diversified cropping patterns.
• Strengthening Rural Infrastructure
  • Post-harvest storage units and processing centres to reduce food wastage.
  • Enhanced cold storage and supply chain systems for better price realization.
• Financial Empowerment for Farmers
  • Access to credit for small and marginal farmers.
  • Better financial planning through the Grameen Credit Score system.
• Employment and Rural Livelihoods
  • New job opportunities in agriculture, food processing, and storage.
  • Reduced migration due to better rural employment prospects.

Challenges in Implementation:

• Ensuring Timely Fund Allocation – Convergence of existing schemes may delay fund distribution to farmers.
• Infrastructure Gaps in Remote Areas – Some districts lack cold storage, warehouses, and irrigation systems.
• Farmer Awareness and Participation – Effective implementation requires extensive outreach to educate farmers about scheme benefits.

Conclusion:

PMDKY is a transformative step towards improving India’s agricultural landscape. By focusing on productivity, irrigation, storage, and financial access, the scheme aims to empower 1.7 crore farmers and ensure sustainable rural development.

While challenges remain, effective coordination between central and state governments and timely implementation of initiatives will be key to the scheme’s success. If executed efficiently, PMDKY has the potential to make India’s agricultural sector more resilient, productive, and financially secure.