PM Dhan Dhaanya Krishi Yojana: Agricultural Prosperity Vision from Economic Survey 2025-26
The Prime Minister Dhan Dhaanya Krishi Yojana (PM-DDKY) represents the government's comprehensive vision for agricultural prosperity and doubling farmer incomes. The Economic Survey 2025-26 discusses this initiative as part of its broader analysis of agricultural policy and rural development. This article examines the scheme's objectives, implementation framework, and expected outcomes within the context of India's agricultural transformation agenda.
Context: India's Agricultural Challenges
Understanding PM Dhan Dhaanya Krishi Yojana requires appreciating the challenges facing Indian agriculture. Despite agriculture employing about 42 per cent of India's workforce, its share in GDP has declined to around 18 per cent. This productivity gap between agriculture and other sectors translates into lower incomes for those dependent on farming.
Indian agriculture faces several structural challenges. Farm sizes are small and fragmented, with the average operational holding less than 1.2 hectares. Many farmers lack access to modern inputs, irrigation, and technology. Post-harvest losses remain high due to inadequate storage and processing infrastructure. Market linkages are often weak, leaving farmers dependent on intermediaries who capture a large share of value.
Climate change adds another layer of uncertainty. Erratic monsoons, extreme weather events, and shifting growing conditions affect agricultural productivity and farmer incomes. The Economic Survey 2025-26 notes the importance of building resilience against these climate-related risks.
Against this backdrop, the government has launched multiple initiatives to support farmers, from income support through PM-KISAN to crop insurance through PMFBY. PM Dhan Dhaanya Krishi Yojana represents the next step in this evolution of agricultural policy.
Scheme Objectives and Vision
The name Dhan Dhaanya, meaning wealth and grains in Sanskrit, encapsulates the scheme's dual objective of enhancing agricultural productivity and farmer prosperity. The scheme aims to create a holistic ecosystem for agricultural development rather than addressing individual challenges in isolation.
Key objectives of PM Dhan Dhaanya Krishi Yojana include increasing agricultural productivity through adoption of modern technologies and best practices, ensuring remunerative prices for farmers through better market linkages, reducing input costs to improve farmer profitability, building climate resilience through sustainable agricultural practices, and enhancing post-harvest infrastructure to reduce losses and add value.
The scheme takes an integrated approach, recognizing that agricultural prosperity requires simultaneous action on multiple fronts. A farmer benefits from higher yields only if markets absorb the additional production at reasonable prices. Better prices are sustainable only if productivity improvements reduce unit costs. And all gains are vulnerable if climate shocks wipe out harvests.
Implementation Framework
The Economic Survey 2025-26 discusses the implementation framework for agricultural initiatives, which applies to PM Dhan Dhaanya Krishi Yojana. The scheme operates through a convergence model that brings together various government departments, state agencies, and private sector partners.
At the central level, the Ministry of Agriculture and Farmers Welfare coordinates overall scheme implementation. The scheme integrates with existing central schemes like the National Food Security Mission, PM-KISAN, and Soil Health Card programme to create synergies rather than overlaps.
State governments play a critical implementation role. Agriculture is a state subject under the Indian Constitution, meaning states have primary responsibility for agricultural policy. The scheme provides financial and technical support to states while allowing flexibility in implementation based on local conditions.
District-level implementation involves coordination between district collectors, agricultural officers, and Krishi Vigyan Kendras. These agricultural science centers provide last-mile delivery of technology and training to farmers.
The scheme emphasizes digital governance. The Kisan Rin Portal enables farmers to access credit information and applications. Geotagging of agricultural activities improves monitoring and reduces leakages. Data analytics help target interventions to areas and farmers most in need.
Key Components of the Scheme
PM Dhan Dhaanya Krishi Yojana encompasses several key components that address different aspects of agricultural development.
The productivity enhancement component focuses on seed replacement, soil health management, and integrated pest management. High-quality seeds can increase yields by 15-20 per cent with no additional input costs. Soil health cards help farmers understand nutrient deficiencies and apply balanced fertilization. The Economic Survey 2025-26 discusses the importance of re-orienting fertilizer use towards soil health and crop productivity.
The irrigation component supports micro-irrigation adoption and water use efficiency. Per Drop More Crop principles are promoted through drip and sprinkler systems that can reduce water consumption by 30-50 per cent while improving yields. Given water scarcity in many agricultural regions, efficient water use is critical for sustainable intensification.
The market linkage component connects farmers with processors, aggregators, and retail chains. Farmer Producer Organizations receive support to aggregate produce and negotiate better prices. E-NAM (Electronic National Agriculture Market) integration enables farmers to access buyers beyond their local mandis.
The value addition component supports on-farm and off-farm processing. Primary processing centers reduce post-harvest losses. Food processing clusters create employment and add value before produce leaves the farm gate. The PM-SAMPADA scheme for agro-processing complements these efforts.
Financial Architecture
The scheme's financial architecture combines central allocation with state contributions and leverages private investment. The Economic Survey 2025-26 discusses the importance of quality fiscal expenditure that creates multiplier effects in the economy.
Central funding supports scheme components with pan-India applicability, such as technology platforms and research. States contribute matching funds for state-specific interventions. This cost-sharing creates ownership and ensures states customize implementation to local needs.
Credit facilitation is a crucial financial component. Kisan Credit Cards provide working capital to farmers at concessional rates. The scheme works to increase credit flow to agriculture, which the survey notes as an ongoing priority. Interest subvention makes agricultural credit more affordable.
Private investment is encouraged through public-private partnerships in areas like cold chain development, food processing, and agricultural technology. The government creates an enabling environment through policy support and risk mitigation while private capital provides implementation capacity.
Crop Diversification Support
The Economic Survey 2025-26 discusses crop diversification as an important objective that PM Dhan Dhaanya Krishi Yojana supports. India's agricultural system has become heavily concentrated in rice and wheat, partly due to procurement policies that guarantee offtake for these crops.
This concentration creates several problems. Nutritionally, it leads to deficits in pulses, oilseeds, and coarse cereals that provide protein and micronutrients. Environmentally, rice-wheat monoculture depletes groundwater and degrades soil health. Economically, farmers miss opportunities to grow higher-value crops that could increase their incomes.
The scheme supports diversification towards pulses and oilseeds to reduce import dependence. India imports significant quantities of pulses and edible oils, draining foreign exchange. Domestic production of these crops would improve nutrition, save foreign exchange, and potentially benefit farmers through better prices.
The survey notes that accelerating yield improvements in pulses and oilseeds would restore their relative profitability compared to cereals. This requires research investment, quality seed multiplication, and procurement support to provide farmers confidence that diversified crops will find markets.
Technology and Innovation
Modern agricultural technology is central to PM Dhan Dhaanya Krishi Yojana's productivity enhancement objective. The scheme promotes technology adoption through demonstration, training, and subsidy support.
Digital agriculture tools include mobile applications for weather forecasting, pest surveillance, and market prices. Farmers can make better decisions with real-time information about weather conditions that affect planting and harvesting, pest outbreaks that require intervention, and prices in different markets that guide selling decisions.
Precision agriculture techniques help farmers apply inputs more efficiently. Variable rate technology enables site-specific application of seeds, fertilizers, and pesticides based on soil and crop conditions. While still nascent in India, these technologies can reduce input costs while improving yields.
Agricultural drones are being promoted for spraying and monitoring. Drones can cover large areas quickly and safely for pesticide application, particularly in crops like cotton where manual spraying exposes workers to chemicals. Drone surveys help identify crop stress and irrigation needs.
Climate Resilience Building
Climate change poses growing risks to Indian agriculture, and PM Dhan Dhaanya Krishi Yojana incorporates climate resilience building. The Economic Survey 2025-26 discusses how favorable weather in FY26 supported agricultural production, implicitly acknowledging that weather variability affects outcomes.
Climate-resilient varieties developed by ICAR and state agricultural universities are promoted under the scheme. These varieties withstand drought, flooding, heat stress, and salinity that climate change is making more frequent. Shorter duration varieties help farmers escape weather risks by completing the crop cycle faster.
Natural farming practices reduce dependence on external inputs while improving soil health. Zero-budget natural farming and organic farming methods promoted under the scheme build soil organic matter that improves water retention and resilience. The survey notes the Natural Farming Certification System that enables farmers to access premium markets.
Crop insurance through Pradhan Mantri Fasal Bima Yojana provides a safety net when climate shocks cause crop losses. The scheme works to increase insurance coverage and improve claim settlement processes so farmers receive timely compensation.
Farmer Producer Organizations
Farmer Producer Organizations (FPOs) are a key institutional innovation that PM Dhan Dhaanya Krishi Yojana supports. The Economic Survey 2025-26 mentions Farmer Producer Organizations as vehicles for collective action by small farmers.
FPOs aggregate small farmers to achieve economies of scale in input purchase, output marketing, and technology access. A single farmer with one hectare cannot negotiate with large buyers or access institutional finance. An FPO representing 500 such farmers has collective market power.
The scheme supports FPO formation, capacity building, and initial operating expenses. Professional management training helps FPO leaders operate these organizations effectively. Equity grants provide working capital until the FPO becomes self-sustaining.
FPOs also serve as delivery channels for scheme benefits. Rather than reaching individual farmers separately for each intervention, scheme components can be channeled through FPOs that aggregate demand and provide collective delivery.
Integration with Existing Schemes
PM Dhan Dhaanya Krishi Yojana is designed to integrate with and enhance existing agricultural schemes rather than replace them. This convergence approach maximizes impact by coordinating multiple interventions.
PM-KISAN provides income support of Rs 6,000 per year to farmer families. This direct benefit transfer provides immediate relief but does not by itself transform agricultural productivity. PM Dhan Dhaanya Krishi Yojana complements this income support with productivity enhancement that raises farmer earnings sustainably.
The Soil Health Card scheme provides farmers information about their soil's nutrient status. PM Dhan Dhaanya Krishi Yojana builds on this information by supporting balanced fertilization and soil amelioration based on soil test recommendations.
The National Food Security Mission supports production of specific crops like rice, wheat, and pulses. PM Dhan Dhaanya Krishi Yojana coordinates with NFSM to avoid duplication while ensuring coverage of areas and crops not addressed by NFSM.
UPSC Relevance: Agricultural Policy
Agricultural policy and farmer welfare are important UPSC topics:
- GS-III: Agricultural marketing, food security, farm income
- Economy Optional: Agricultural economics, rural development
- Current Affairs: Government schemes, budget announcements
Practice MCQs on PM Dhan Dhaanya Krishi Yojana - Economic Survey 2025-26
Q1. PM Dhan Dhaanya Krishi Yojana is primarily aimed at:
(a) Urban food distribution
(b) Agricultural productivity and farmer prosperity
(c) Industrial development
(d) Export promotion
Answer: (b) Agricultural productivity and farmer prosperity
Q2. Which of the following is NOT a component of PM Dhan Dhaanya Krishi Yojana?
(a) Productivity enhancement
(b) Micro-irrigation support
(c) Heavy industry subsidy
(d) Market linkage
Answer: (c) Heavy industry subsidy
Q3. Farmer Producer Organizations (FPOs) help small farmers by:
(a) Providing free land
(b) Aggregating for economies of scale in marketing
(c) Guaranteeing minimum support prices
(d) Offering direct cash transfers
Answer: (b) Aggregating for economies of scale in marketing
Q4. The Economic Survey 2025-26 emphasizes crop diversification towards:
(a) Rice and wheat
(b) Pulses and oilseeds
(c) Cash crops only
(d) Export crops only
Answer: (b) Pulses and oilseeds to reduce import dependence
Q5. Climate resilience under the scheme includes:
(a) Building dams only
(b) Climate-resilient crop varieties and natural farming
(c) Banning agriculture in drought-prone areas
(d) Only crop insurance
Answer: (b) Climate-resilient crop varieties and natural farming practices
Conclusion
PM Dhan Dhaanya Krishi Yojana represents a comprehensive approach to agricultural transformation in India, as discussed in the Economic Survey 2025-26. By addressing productivity, markets, inputs, and resilience simultaneously, the scheme aims to create sustainable improvements in farmer welfare rather than one-time benefits. The integration with existing schemes, emphasis on technology adoption, and support for farmer organizations provide an implementation framework that can deliver results at scale. For UPSC aspirants, understanding this scheme and its place in India's agricultural policy architecture is essential for both current affairs and core subject preparation.