Prime Minister Dhan-Dhaanya Krishi Yojana

The Union Budget presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduced the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY). This initiative aims to enhance agricultural productivity and improve the livelihoods of farmers in India. It is inspired by the success of the Aspirational Districts Programme (ADP), which focuses on transforming under-developed districts through a collaborative and competitive framework.

Aspirational Districts Programme Overview

• The ADP was launched in January 2018 and targets 112 of India’s most under-developed districts.
• Its framework is based on three key principles – Convergence, Collaboration, and Competition.
• The programme uses a delta ranking system to assess progress across 49 Key Performance Indicators (KPIs) that cover five socio-economic themes – Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development, and Infrastructure.

Key Features of PMDKY

• The PMDKY will focus on 100 districts identified based on three criteria – low agricultural productivity, moderate cropping intensity, and below-average credit access.
• The Ministry of Agriculture and Farmers’ Welfare is currently gathering data to select these districts.
• Cropping intensity is metric in this context, measuring the efficiency of land use by comparing the gross cropped area to the net area sown.

Objectives of PMDKY

The programme has five main objectives:

1. Enhance agricultural productivity.
2. Encourage crop diversification and sustainable practices.
3. Improve post-harvest storage at local levels.
4. Upgrade irrigation facilities.
5. Facilitate access to both long-term and short-term credit for farmers.

These goals aim to support approximately 1.7 crore farmers across the selected districts.

Funding and Implementation

While the Union Budget does not specify a separate allocation for PMDKY, funds will be sourced from existing schemes under the Ministry of Agriculture and Farmers’ Welfare, as well as the Ministry of Fisheries, Animal Husbandry, and Dairying. The government plans to seek formal approval from the Union Cabinet before rolling out the programme.

Impact on Agriculture Sector

The PMDKY is expected to impact the agricultural sector. By focusing on productivity and sustainable practices, the scheme aims to uplift the farming community and contribute to food security. The initiative also seeks to streamline access to credit, which is crucial for farmers to invest in their operations.

Monitoring Progress

The success of PMDKY will be monitored through the same delta ranking system used in the ADP. This will ensure accountability and encourage districts to compete in achieving their developmental goals.

Future Prospects

If successful, PMDKY could serve as a model for agricultural development in other regions. The emphasis on collaboration between state and central governments may encourage a more integrated approach to rural development.

Questions for UPSC:

1. Critically analyse the role of the Aspirational Districts Programme in transforming under-developed areas in India.
2. Explain the significance of cropping intensity in agricultural productivity. What factors influence it?
3. What are the challenges faced by farmers in accessing credit facilities? Discuss with suitable examples.
4. Comment on the importance of sustainable agricultural practices in the context of climate change and food security.

Answer Hints:

1. Critically analyse the role of the Aspirational Districts Programme in transforming under-developed areas in India.

1. Launched in January 2018, the ADP targets 112 under-developed districts to enhance socio-economic conditions.
2. It employs a framework of Convergence, Collaboration, and Competition to drive development.
3. Progress is measured through a delta ranking system based on 49 Key Performance Indicators across five themes.
4. ADP has led to improvements in health, education, infrastructure, and financial inclusion in targeted districts.
5. By focusing on localized challenges, ADP encourages community engagement and ownership in development initiatives.

2. Explain the significance of cropping intensity in agricultural productivity. What factors influence it?

1. Cropping intensity measures the efficiency of land use, indicating how many crops are grown in a year on a given land area.
2. Higher cropping intensity can lead to increased agricultural output and better income for farmers.
3. Factors influencing cropping intensity include climate, soil quality, irrigation facilities, and farming practices.
4. Government policies and support for crop diversification can also enhance cropping intensity.
5. Regional variations in cropping patterns and access to technology further affect cropping intensity levels.

3. What are the challenges faced by farmers in accessing credit facilities? Discuss with suitable examples.

1. Farmers often face a lack of collateral, making it difficult to secure loans from formal financial institutions.
2. High-interest rates and complex loan processes can deter farmers from seeking credit.
3. Limited financial literacy among farmers contributes to low usage of available credit facilities.
4. Examples include smallholder farmers in rural areas who rely on informal lenders, leading to exploitative interest rates.
5. Seasonal income fluctuations can hinder repayment capacity, further complicating access to credit.

4. Comment on the importance of sustainable agricultural practices in the context of climate change and food security.

1. Sustainable practices reduce environmental impact and promote biodiversity, crucial in combating climate change.
2. They enhance soil health and water conservation, ensuring long-term productivity and resilience in agriculture.
3. Adopting sustainable methods can improve food security by increasing crop yields and reducing dependency on chemical inputs.
4. Examples include crop rotation, organic farming, and agroforestry, which mitigate climate risks and enhance livelihoods.
5. Government support and awareness programs are essential to encourage farmers to transition to sustainable practices.