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Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDKY)
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Finance Minister Nirmala Sitharaman announced the launch of the Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDKY) during the Union Budget presentation on February 1, 2025.
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- The scheme aims to boost agricultural productivity, enhance credit availability, and improve irrigation and storage infrastructure in selected districts.
- The scheme is inspired by the Aspirational Districts Programme (ADP).
The Aspirational Districts Programme
- PMDKY is modelled after the ADP, which was launched by Prime Minister Narendra Modi in January 2018.
- ADP focused on transforming 112 of the most under-developed districts based on three principles:
- Convergence (aligning Central and State schemes)
- Collaboration (coordinated efforts of nodal officers and district collectors)
- Competition (district rankings based on progress in key indicators)
- The ranking under ADP was based on 49 Key Performance Indicators (KPIs) across five broad socio-economic themes: Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development, and Infrastructure.
Coverage: District Selection Criteria
- PMDKY will cover 100 districts, selected based on three key parameters:
- Low agricultural productivity
- Moderate cropping intensity
- Below-average farm credit availability
- The Ministry of Agriculture and Farmers’ Welfare is analysing data to finalise the districts.
- Cropping intensity, a measure of land use efficiency, will be a key factor in district selection.
- India’s average cropping intensity was 155% in 2021-22 (up from 111% in 1950-51).
- This indicator varies across states, influencing selection for PMDKY.
- The Ministry has also sought district-wise farm credit data from the Department of Financial Services and NABARD.
Objectives of PMDKY
- The scheme aims to support 1.7 crore farmers and focuses on five key objectives:
- Enhancing Agricultural Productivity: Focus on increasing the efficiency of agricultural output.
- Adopting Crop Diversification & Sustainable Practices: Encouraging farmers to diversify crops and embrace sustainable agricultural methods.
- Augmenting Post-Harvest Storage: Improving storage facilities at the panchayat and block levels to reduce post-harvest losses.
- Improving Irrigation Facilities: Enhancing irrigation infrastructure to ensure better water availability for crops.
- Facilitating Availability of Credit: Ensuring that farmers have access to both long-term and short-term credit.
Funding & Implementation
- No separate budget allocation has been made for PMDKY in the Union Budget.
- Instead, existing funds from multiple agricultural and allied sector schemes will be pooled.
- These schemes include programs from the Ministry of Agriculture and Farmers’ Welfare and the Ministry of Fisheries, Animal Husbandry, and Dairying.
- A dedicated allocation may be made once the Union Cabinet formally approves the scheme, paving the way for its on-ground implementation.
