Union Budget Agriculture Reforms: How PM Dhan-Dhanya Krishi Yojana Will Benefit 1.7 Crore Farmers

In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman reiterated the government's focus on improving agricultural infrastructure by announcing the Pradhan Mantri Dhan-Dhanya Krishi Yojana (PMDDKY). Under this initiative, 100 selected agrarian districts will be developed in close coordination with state governments to ensure targeted and effective implementation.

The scheme aims to drive growth in these 100 agri-districts through saturation-based convergence of 36 existing Central schemes spread across 11 ministries. With an annual allocation of Rs 24,000 crore, the programme will be implemented over six years starting FY 2025-26.

In addition to Central schemes, state-level programmes and partnerships with the private sector will also be integrated. Instead of launching new initiatives, PMDDKY focuses on streamlining and aligning existing schemes to ensure efficient last-mile delivery, reduce overlap, and maximise benefits for farmers.

Key Features Of The PM Dhan-Dhanya Krishi Yojana

Focused Agricultural Development:

The government has identified 100 districts across the country that face challenges such as low productivity, moderate crop performance, and limited access to institutional credit. The scheme builds on the learnings of the Aspirational District Programme and is projected to provide direct benefits to nearly 1.7 crore farmers.

Sustainable and Climate-Resilient Farming:

PMDDKY encourages climate-appropriate farming practices, improved water management, and precision agriculture to enhance productivity and resilience against climate risks.

Improved Access to Finance:

Both short-term and long-term credit support will be strengthened, enabling farmers to invest in modern machinery, high-quality seeds, and advanced farming methods.

Post-Harvest Infrastructure Development:

To reduce post-harvest losses, the scheme focuses on creating better storage, warehousing, and logistics facilities at the panchayat and block levels.

Expansion of Irrigation Facilities:

The programme seeks to increase irrigation coverage and promote water-efficient technologies, helping improve crop intensity and stabilise yields.

Adoption of Technology:

The initiative promotes the use of innovative agricultural technologies and tools to optimise farm productivity and improve outcomes.

Criteria For District Selection

The 100 districts will be chosen based on:

• Low agricultural productivity
• Low cropping intensity
• Limited flow of agricultural credit

The number of districts selected from each state or Union Territory will depend on their share of net cropped area and operational holdings. However, at least one district from every state will be included to ensure balanced regional representation. Each selected district will serve as a hub for convergence-led agricultural reforms, customised to local agro-climatic conditions and cropping patterns.

Beneficiaries Of The PM Dhan-Dhanya Krishi Yojana

The scheme is expected to benefit:

• Small and marginal farmers seeking financial support and access to modern farming techniques
• Farmer Producer Organisations (FPOs) and agricultural cooperatives aiming to expand markets and secure better prices
• Agri-tech startups developing innovative solutions to improve farm efficiency and productivity
• Women farmers and Self-Help Groups (SHGs) working towards financial independence through technology-driven agriculture
• Rural communities that will gain from improved infrastructure, better credit access, and increased employment opportunities.