BizInsight Hub: PM Dhan-Dhaanya Krishi Yojana 2025: 36 Farm Schemes Merged to Boost Sustainable Agriculture in India

PM Dhan-Dhaanya Krishi Yojana 2025: 36 Farm Schemes Merged to Boost Sustainable Agriculture in India

-Dr.Sanjaykumar Pawar

Introduction
What is the PM Dhan-Dhaanya Krishi Yojana?
Why Was There a Need to Merge 36 Schemes?
Objectives of PMDDKY
Key Features and Outlay
Implementation Strategy: National to Local
District Selection Criteria: A Strategic Approach
Expert Opinions and Critical Insights
Potential Challenges and Risks
Data, Numbers, and Visual Analysis
How It Compares with Past Initiatives
Long-Term Impact on Farmers and Rural Economy
Conclusion
FAQs

1. Introduction

In the Union Budget 2025–26, the Government of India unveiled the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY)—a transformative step toward reshaping India’s agricultural landscape. With a substantial annual allocation of ₹24,000 crore over six years, this scheme focuses on streamlining existing agricultural efforts, promoting sustainable farming, and empowering farmers at the grassroots level.

India’s agricultural sector is the backbone of its economy, supporting nearly 12 crore farmers and employing over 40% of the country’s workforce. Yet, farmers continue to face challenges such as low productivity, limited access to irrigation, inadequate credit facilities, and over-reliance on unsustainable methods. Despite the existence of numerous schemes, these structural issues remain largely unresolved.

The PMDDKY aims to bridge these gaps by introducing a district-centric approach, ensuring targeted implementation based on local needs. It also promotes synergy between central and state-level agricultural programs, encouraging better resource allocation and farmer participation.

This visionary initiative is not just about funding—it’s about long-term transformation. By focusing on convergence, sustainability, and localized planning, the PMDDKY is poised to become a cornerstone of India’s mission for inclusive rural development and agricultural self-reliance.

2. What is the PM Dhan-Dhaanya Krishi Yojana?

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is a game-changing, centrally sponsored scheme aimed at enhancing farm productivity and promoting sustainable, climate-resilient agriculture across India. Launched in July 2025, this ambitious initiative consolidates 36 existing schemes from 11 Union Ministries into one streamlined program, making agricultural governance more efficient and impactful.

By focusing on integration and simplification, PMDDKY ensures that farmers receive unified support tailored to their local needs. The scheme specifically targets 100 under-performing districts, identified using key agricultural indicators such as yield, irrigation coverage, and input access. Through this focused strategy, the government plans to directly benefit over 1.7 crore farmers, many of whom are small and marginal landholders.

What sets PMDDKY apart is its commitment to localized agricultural development. District-level implementation plans will align national priorities with regional realities, ensuring that interventions are need-based and results-driven. From improving irrigation infrastructure to encouraging organic and climate-smart practices, the scheme aims to build a resilient and inclusive farming ecosystem.

With climate change threatening agricultural stability, PMDDKY is a timely move toward sustainable farming in India—a unified mission to secure farmers’ livelihoods and food security for future generations.

3. Why Was There a Need to Merge 36 Schemes?

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is a major centrally sponsored scheme launched in July 2025 with the goal of transforming India’s agriculture through sustainable, climate-resilient practices and better resource utilization. This forward-looking initiative consolidates 36 agricultural schemes from 11 Union Ministries into one unified framework, making implementation more efficient and farmer-focused.

what you need to know about PMDDKY:

Purpose: The core objective is to improve farm productivity, promote climate-smart agriculture, and ensure food security through convergence of policies and targeted support.
Simplification and Synergy: By merging multiple schemes, PMDDKY eliminates duplication, improves coordination among departments, and ensures farmers receive comprehensive benefits under a single umbrella.
Target Areas: The scheme focuses on 100 under-performing districts, selected based on low agricultural productivity, irrigation coverage, and access to inputs. This district-centric model ensures that resources are directed where they are most needed.
Direct Impact: Over 1.7 crore farmers, especially small and marginal ones, are expected to benefit directly from better access to inputs, credit, irrigation, training, and technology.
Sustainability Focus: PMDDKY places a strong emphasis on climate-resilient agriculture, organic farming, water-use efficiency, and soil health management to build long-term sustainability.

By encouraging localized planning, strengthening infrastructure, and promoting eco-friendly farming, PMDDKY aims to create a more resilient and inclusive agricultural economy. It’s not just a scheme—it’s a strategic blueprint to safeguard India’s food future and uplift its farmers through smart, sustainable growth.

4. Objectives of PMDDKY

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is a landmark initiative designed to transform Indian agriculture by addressing its most pressing challenges. Launched with a vision for sustainable, inclusive, and climate-resilient farming, PMDDKY focuses on long-term growth for farmers and rural communities. Here are the key objectives of PMDDKY, aligned with India’s agri-development goals:

✅ Enhance Crop Productivity and Cropping Intensity

PMDDKY aims to improve overall agricultural output by promoting scientific techniques, high-yield seed varieties, and multi-cropping systems. The goal is to increase both farm income and food security.

✅ Promote Sustainable Practices

The scheme encourages a shift toward organic farming, natural farming, and other eco-friendly methods to reduce dependence on chemical inputs and preserve ecological balance.

✅ Improve Soil Health and Water Use Efficiency

Soil testing, balanced fertilization, and efficient irrigation methods like micro-irrigation are core components. These efforts help maintain soil fertility while conserving precious water resources.

✅ Enable Credit Accessibility and Value Addition

PMDDKY facilitates easier access to agricultural credit and financial support, especially for small and marginal farmers. It also promotes value chain development through processing, branding, and marketing support.

✅ Strengthen Post-Harvest Infrastructure

By building storage units, cold chains, and processing centers at panchayat and block levels, the scheme minimizes post-harvest losses and enhances market access for farmers.

✅ Create Local Employment Opportunities

The scheme boosts rural livelihoods by creating jobs in allied sectors like dairy, poultry, fisheries, and agri-processing units.

Together, these objectives make PMDDKY a comprehensive roadmap for agricultural transformation in India, focusing on productivity, sustainability, and farmer empowerment.

5. Key Features and Outlay

Feature	Details
Annual Outlay	₹24,000 crore
Duration	6 years (2025–2031)
Beneficiaries	1.7 crore farmers
District Coverage	100 across all States/UTs
Ministries Involved	11 (including Agriculture, Water Resources, Rural Development)
Converged Schemes Monitoring	36 existing Schemes Monthly review at 3 levels (District, State, National)

6. Implementation Strategy: National to Local

One of the most impactful aspects of the PM Dhan-Dhaanya Krishi Yojana (PMDDKY) is its bottom-up implementation model, drawing inspiration from the successful Aspirational Districts Programme. This approach ensures that planning and execution are rooted in local realities while being supported by national-level oversight.

🔹 Committees at Three Levels

To guarantee smooth coordination and effective delivery, PMDDKY establishes dedicated committees at all administrative levels:

National Committee: Oversees policy direction, coordinates across 11 ministries, and ensures timely fund allocation and goal alignment.
State Committee: Supports execution, tailors interventions to state-specific priorities, and ensures convergence with state-level schemes.
District Committee (Dhan Dhaanya Samiti): The heart of local planning, these committees include district officials and progressive farmers, ensuring that farmer voices are directly part of the decision-making process.

🔹 Localized District Agriculture Plan

Every district under PMDDKY will craft a customized Agriculture and Allied Activities Plan, focusing on real-time challenges and opportunities. Key areas of intervention include:

Crop Diversification: Promoting region-specific, high-value, and climate-resilient crops.
Allied Sectors: Strengthening dairy, poultry, and fisheries for income diversification and rural employment.
Irrigation and Storage Infrastructure: Expanding micro-irrigation and building cold storage at the panchayat level.
Natural Resource Management: Promoting water conservation, soil health restoration, and sustainable farming techniques.

This ground-up strategy ensures that the PMDDKY implementation is farmer-driven, locally relevant, and results-oriented. By empowering districts to lead planning, the scheme bridges the gap between national vision and grassroots needs—delivering real change where it matters most.

7. District Selection Criteria: A Strategic Approach

A key feature of the PM Dhan-Dhaanya Krishi Yojana (PMDDKY) is its focused, data-driven approach to district selection. The scheme targets 100 under-performing districts across India to ensure that resources are directed where they are needed most. This strategic selection model ensures inclusivity and targeted agricultural support.

🔹 Districts are selected based on the following criteria:

Low Agricultural Productivity
Districts with consistently low crop yields compared to the national average are prioritized to boost overall farm output.
Low Cropping Intensity
Areas where multiple cropping is limited due to lack of irrigation or resources are included to promote intensive and efficient land use.
Low Agricultural Credit Disbursement
Regions where farmers have limited access to formal credit systems are considered, with the aim of improving financial inclusion and access to institutional support.

Additionally, at least one district from every State and Union Territory will be included, ensuring national coverage and equity.

🔹 Calls for Refinement

While the current metrics offer a strong starting point, experts believe the selection process could be improved.
Abhishek Jain from CEEW (Council on Energy, Environment and Water) recommends using net agricultural income per hectare instead of credit disbursement as a key metric.

“Instead of low credit, using annual net agricultural income per hectare would be a better metric. Over-reliance on credit is not ideal for resilience.”

This suggestion underscores the need for outcome-based metrics over input-based ones, focusing on farmer income and sustainability rather than loan availability.

By blending data-driven planning with expert insight, PMDDKY aims to create a smarter, more impactful agricultural transformation across India.

8. Expert Opinions and Critical Insights

The PM Dhan-Dhaanya Krishi Yojana (PMDDKY) has generated wide interest among policymakers, agricultural experts, and development analysts. Its ambitious scope and convergence-driven model are being praised, while some also offer constructive critiques for improved implementation. Here's what key experts are saying:
✅ Ashwini Vaishnaw (Union Minister)
“This first-of-its-kind initiative will transform India’s agricultural economy.”
The Union Minister highlights PMDDKY as a historic and transformative step in Indian agriculture. With its holistic, district-focused model and emphasis on sustainability, the scheme promises to modernize farming practices and empower rural communities.
✅ Abhishek Jain (Council on Energy, Environment and Water - CEEW)
“The scheme smartly targets productivity and resilience, but district selection should rely on income data, not credit usage.”
Jain commends the scheme’s focus on productivity and climate resilience, but advises refining the district selection criteria. He suggests using net agricultural income per hectare as a more meaningful metric, arguing that over-reliance on credit may not reflect true vulnerability or resilience.
✅ Policy Watch India
“Integrating schemes under one umbrella boosts administrative efficacy and ensures convergence—a long-standing challenge in Indian agriculture.”
Policy experts appreciate PMDDKY’s effort to converge 36 schemes from 11 ministries. This integration reduces duplication, enhances coordination, and delivers better outcomes for farmers—a critical step in overcoming past implementation inefficiencies.
🔍 Key Takeaway:
Experts widely agree that PMDDKY is a timely and strategic intervention. Its success will depend on fine-tuning its execution, using data-driven approaches, and maintaining farmer-centric planning at every level. If implemented effectively, it could redefine the path toward sustainable agriculture and rural prosperity in India.

9. Potential Challenges and Risks

While the PM Dhan-Dhaanya Krishi Yojana (PMDDKY) is a groundbreaking step toward transforming Indian agriculture, its success will depend on overcoming several implementation challenges and systemic risks. Identifying these early is crucial to ensuring the scheme delivers on its promise of sustainable, inclusive growth.

🔹 Key Challenges:

Bureaucratic Delays at District Levels
Local governance often suffers from slow file movement, staff shortages, and procedural bottlenecks. These could delay the preparation and rollout of district-level agricultural plans.
Monitoring Fatigue
Monthly reviews at district, state, and national levels are essential for accountability but may lead to reporting fatigue among officials, compromising the quality of data and follow-up actions.
State-Level Capacity Variations
Not all states have equal administrative strength or technical expertise. This can lead to uneven implementation and disparity in outcomes.
Farmer Adoption of New Practices
Shifting to natural or climate-resilient farming methods requires mindset change, training, and confidence. Resistance from traditional farmers may hinder adoption.
Politicization of District Selection
There is a risk that district selection may be influenced by political interests rather than objective criteria, which could dilute the scheme’s impact.

🔹 Mitigation Strategies:

To address these issues, experts recommend:

Digital Dashboards for real-time progress tracking
Performance-linked fund disbursement to reward effective execution
Transparency Portals, similar to the Aspirational Districts ranking, to publicly monitor results

By proactively managing these risks, PMDDKY can become not just a policy on paper, but a true catalyst for agricultural transformation—ensuring productivity, equity, and climate resilience across India’s farmlands.

10. Data, Numbers, and Visual Analysis

📊 Data Highlights

Metric	Current Avg	PMDDKY Target
Crop Productivity (kg/ha)	2,750	3,500+
Cropping Intensity (%)	140%	160%
Farmers with Credit Access (%)	~42%	65%
Area under Sustainable Farming (%)	7%	20%

📍 Geographic Spread (Targeted Districts by Zone)

North: Punjab, Haryana, UP – Crop diversification
East: Bihar, Jharkhand – Storage and irrigation
West: Rajasthan, Gujarat – Soil and water conservation
South: Karnataka, Tamil Nadu – Organic Farming

11. How It Compares with Past Initiatives

The PM Dhan-Dhaanya Krishi Yojana (PMDDKY) stands out as a comprehensive, convergence-based agricultural reform that aims to address the long-standing gaps left by earlier schemes. While previous initiatives tackled specific issues in Indian agriculture, PMDDKY brings a holistic, district-driven, and sustainable approach that integrates them under one umbrella.

🔹 Comparison with Key Past Schemes:

Scheme	Focus	Drawbacks
PM-KISAN	Direct income support	No focus on long-term reforms or productivity improvements
RKVY	State-led agricultural growth	Uneven results across states, limited convergence
PMFBY	Crop insurance	Operational and claim settlement issues
PMDDKY	Convergence + Sustainability + District Planning	Yet to be tested at scale

🔹 What Sets PMDDKY Apart:

First-of-its-kind Convergence
PMDDKY merges 36 schemes from 11 ministries, something no earlier initiative attempted. This reduces duplication, improves coordination, and maximizes impact.
Localized, District-Centric Model
Unlike previous top-down schemes, PMDDKY empowers district-level planning through the Dhan Dhaanya Samitis, with input from local stakeholders including farmers.
Sustainability at the Core
The scheme emphasizes climate-resilient agriculture, natural farming, soil health, and water-use efficiency—key to long-term productivity and food security.

PMDDKY is India’s first serious attempt to integrate structural reform, local planning, and environmental sustainability into one framework. While it remains to be fully implemented and tested, its design reflects a major policy shift—from short-term relief to long-term agricultural transformation.

12. Long-Term Impact on Farmers and Rural Economy

If implemented effectively, the PM Dhan-Dhaanya Krishi Yojana (PMDDKY) has the potential to reshape the future of Indian agriculture. Designed to be farmer-centric, climate-resilient, and economically sustainable, this ambitious initiative goes beyond subsidy distribution—laying the foundation for real structural change.

🔹 If executed well, PMDDKY can:

Double Farm Incomes in Target Districts
By improving productivity, promoting value addition, and expanding access to credit and infrastructure, the scheme can significantly boost farmer incomes, especially in under-performing regions.
Promote Climate-Smart Agriculture
PMDDKY emphasizes natural farming, soil health, and water-use efficiency—all critical for sustainable farming in the face of climate change.
Build Resilient Rural Economies
By supporting allied sectors like dairy, poultry, and fisheries, the scheme can diversify income sources and reduce the economic vulnerability of rural households.
Reduce Dependency on Subsidies
Through better infrastructure, credit access, and resource efficiency, PMDDKY empowers farmers to become self-sufficient, reducing long-term reliance on government support.
Create Replicable Models for Other Districts
States can use successful PMDDKY implementations to design customized models that can be scaled across other regions.

🔹 The Role of Innovation & Partnerships

For PMDDKY to reach its full potential, collaboration with private sector players, agri-tech startups, and farmer cooperatives is essential. These partners can bring in technology, market access, and innovation to make farming more profitable and future-ready.

PMDDKY is more than a scheme—it’s a vision for inclusive, modern agriculture. With the right execution, it can become a game-changer for India’s farming communities and rural economy.

13. Conclusion

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) represents a significant paradigm shift in India’s agricultural policy. Unlike previous piecemeal approaches, PMDDKY brings together 36 fragmented schemes under one unified framework, focusing on sustainability, local empowerment, and climate-smart agriculture.

By targeting 100 under-performing districts, the scheme aims to tackle core challenges such as low productivity, weak infrastructure, and lack of credit access. Its district-centric model, involving local committees and farmer participation, ensures that solutions are tailored to regional needs—not imposed from the top down.

More importantly, PMDDKY emphasizes natural farming, soil health, water-use efficiency, and value chain development. This shift toward long-term resilience is critical in an era of rising climate risks and depleting resources.

However, the real test lies in execution. Without strong monitoring systems, digital dashboards, and transparent feedback loops, the scheme could fall prey to the same pitfalls as earlier initiatives. Collaboration with agri-tech startups, cooperatives, and the private sector will be key to ensuring innovation and last-mile delivery.

If implemented effectively, PMDDKY could redefine the future of Indian agriculture—delivering on the long-awaited promise of doubling farmer incomes and building a self-reliant rural economy.

14. FAQs

1. What is the PM Dhan-Dhaanya Krishi Yojana?

It’s a new farm scheme launched in Budget 2025–26 to improve productivity, sustainability, and value addition in agriculture by merging 36 existing schemes.

2. How many farmers will benefit from this scheme?

Over 1.7 crore farmers across 100 districts in India.

3. What is the budget allocation for PMDDKY?

₹24,000 crore per year for 6 years, totaling ₹1.44 lakh crore.

4. How are districts selected under PMDDKY?

Based on low productivity, cropping intensity, and low agricultural credit.

5. Will the scheme support organic farming?

Yes, promoting natural and organic farming is one of the core components.

6. How will progress be tracked?

Through monthly reviews by committees at the district, State, and national levels.

PM Dhan-Dhaanya Krishi Yojana 2025: 36 Farm Schemes Merged to Boost Sustainable Agriculture in India

Table of Contents