Why in News: The Union Cabinet has approved the PM Dhan-Dhaanya Krishi Yojana, a major agricultural reform initiative set to be launched in October 2025 during the rabi season.
Key Features of PMDDKY:
Objective:
- To enhance agricultural productivity, promote crop diversification, encourage sustainable farming, strengthen post-harvest infrastructure, improve irrigation, and ensure credit availability in targeted districts.
Target Areas: 100 districts identified based on:
- Low agricultural productivity
- Low cropping intensity
- Low agricultural credit disbursement
- Minimum of one district from each state/UT
- Proportion based on Net Cropped Area and operational holdings
Implementation Strategy:
- Convergence of 36 existing schemes across 11 central ministries/departments
- Integration with relevant state schemes and local partnerships with the private sector
- Emphasis on local planning through District Dhan-Dhaanya Samitis involving progressive farmers
- Finalization of a District Agriculture and Allied Activities Plan for each selected district
Core Goals:
- Diversify crops
- Conserve soil and water
- Promote organic and natural farming
- Achieve self-sufficiency in agriculture and allied sectors
Monitoring Mechanism:
- Progress tracked on 117 Key Performance Indicators (KPIs) via a centralized dashboard (monthly)
- Regular review by Central Nodal Officers
- Strategic guidance and review by NITI Aayog
Agricultural Transformation in India & Its Need
India’s agriculture employs 45% of the workforce but contributes under 20% to GDP, reflecting low productivity and inefficiencies that demand urgent reforms.
1. Low Productivity:
- Yields of pulses and oilseeds remain low, increasing reliance on imports and limiting food security.
2. Climate Resilience:
- Rainfall variability may rise by 15–20% by 2050, disrupting crop yields.
- Need for climate-resilient crops and early warning systems.
3. Water Efficiency:
- 55% rainfed farming and only 38% water use efficiency.
- Push for micro-irrigation and watershed management.
4. Infrastructure Gaps:
- 35–40% post-harvest losses due to lack of storage and processing.
- Urgent need for cold chains, warehousing, and rural infrastructure.
5. Small Farmer Empowerment:
- 80% farmers are smallholders with annual income around ₹1.2 lakh.
- Need for credit access, FPOs, market linkages, and financial inclusion.
Challenges in Agricultural Transformation in India
1. Timely Fund Allocation
- 50% of funds underutilised in several schemes.
- Delays due to bureaucratic bottlenecks and procedural inefficiencies.
2. State-Level Implementation Gaps
- Uneven progress across states owing to local governance capacities and resource constraints.
- Example: Delayed implementation in states like Bihar and Uttarakhand.
3. Climate Change Impact
- Rainfall variability projected to increase by 15–20% by 2050, affecting yields.
- Rising frequency of extreme weather events disrupts crop cycles and farm income.
4. Limited Financial Literacy
- Only ~30% of farmers access formal credit systems.
- Lack of awareness hinders access to insurance, subsidies, and agri-fintech platforms.
5. Poor Infrastructure: 35–40% post-harvest losses in perishable goods due to lack of-
- Cold storage
- Processing units
- Efficient transport systems
- Impact worse in remote and backward regions.
6. Water Scarcity & Irrigation Inefficiency
- 55% of agriculture is rainfed, making it vulnerable to monsoon failure.
- Agriculture water use efficiency remains only 38%, needing expansion of micro-irrigation and water-saving technologies.
Way Forward for Agricultural Transformation
- Efficient Fund Utilisation: Ensure timely release and utilisation of funds through digital tracking and decentralised planning.
- Uniform State Implementation: Strengthen Centre-State coordination and use real-time dashboards to monitor progress, reducing regional disparities.
- Climate-Resilient Practices: Promote drought-resistant crops, crop diversification, and practices like Tamil Nadu’s System of Rice Intensification (SRI).
- Financial Inclusion: Boost digital literacy and link farmers to credit via platforms like KCC, PMFBY, and Jan Dhan-Aadhaar-Mobile (JAM) trinity.
- Infrastructure Boost: Expand rural cold chains, warehouses, and logistics under PM SAMPADA and promote PPPs to reduce post-harvest losses.
- Water Efficiency: Scale up micro-irrigation (PMKSY-Per Drop More Crop) and adopt watershed management in rainfed regions.
Upsc Relevance
Agriculture (GS III): Aims to enhance income and productivity of small and marginal farmers.
Nutrition and Food Security (GS II/III): Promotes diversification, climate-resilient crops, and better nutrition.
Governance: Integrates various schemes (PM-KISAN, PMFBY, eNAM) under a unified framework.
Mains Practice Question:
Q. “PM Dhan Dhan Yojana seeks to transform the rural economy by ensuring inclusive and sustainable agricultural growth.” Critically examine its potential and implementation challenges.