Cabinet Approves PM Dhan Dhanya Krishi Yojana to Transform 100 Agri-Districts

On July 16, 2025, the Union Cabinet chaired by Prime Minister Narendra Modi gave its formal approval to the Pradhan Mantri Dhan Dhanya Krishi Yojana (PM-DDKY)—a flagship agricultural reform programme first announced by Finance Minister Nirmala Sitharaman in her record 8th Union Budget presentation on February 1, 2025.

This landmark programme, also known as the Developing Agri-Districts Programme, is inspired by the success of the Aspirational Districts Programme (ADP) launched in 2018 to fast-track the development of 112 under-developed districts across India. The PM-DDKY draws from that model but is the first of its kind to focus exclusively on agriculture and allied sectors.

What Was Announced in the Union Budget 2025-26

While presenting the Union Budget on February 1, 2025, the Finance Minister described agriculture as one of the “four engines of development,” alongside MSMEs, investments, and exports. She unveiled the PM-DDKY as a new national mission targeting 100 backward agricultural districts. These districts were to be identified based on low agricultural productivity, moderate cropping intensity, and below-average credit flow.

The programme’s key aims were outlined as:

1. Enhancing agricultural productivity

2. Encouraging crop diversification and sustainable agricultural practices

3. Expanding post-harvest storage infrastructure at panchayat and block levels

4. Improving irrigation facilities

5. Facilitating access to long- and short-term agricultural credit

The Finance Minister stated that this effort could positively impact 1.7 crore farmers across the country and would be undertaken in partnership with states through convergence of existing schemes.

The Cabinet approval now gives official shape and funding to the scheme, setting it up for rollout beginning FY 2025–26 for a six-year period. The implementation plan involves convergence of 36 existing schemes across 11 Union Ministries/Departments, complemented by State government schemes and public-private partnerships.

Each of the 100 target districts will be selected based on a composite score of:

• Low productivity

• Low cropping intensity

• Low credit disbursement

Importantly, every state and Union Territory will have at least one district included, based on their share of Net Cropped Area and operational holdings.

Governance & Monitoring Structure

To ensure effective execution, a three-tier committee structure will be established:

• District-level Dhan Dhanya Samitis will include progressive farmers and finalize local plans.

• State-level Committees will provide coordination and support.

• National-level oversight will ensure alignment with broader policy goals.

Each district will prepare a District Agriculture and Allied Activities Plan, aligning with national objectives like:

• Crop diversification

• Water and soil conservation

• Self-sufficiency in agriculture

• Expansion of organic and natural farming

Progress will be monitored monthly using a digital dashboard with 117 Key Performance Indicators (KPIs). Additionally, NITI Aayog will review and guide district-level planning, while Central Nodal Officers will conduct regular inspections.

Expected Impact and Vision

The scheme is expected to raise the national agricultural average by targeting improvements in underperforming districts. As key indicators improve in these 100 districts, they will lift the overall performance of Indian agriculture. The goals include:

• Boosting agricultural productivity and diversification

• Creating local livelihoods

• Enhancing value addition and domestic food security

• Driving Atmanirbhar Bharat (self-reliant India) in the agricultural sector

Related Rural and Agri-Reforms Announced in Budget 2025-26

🔹 Rural Prosperity and Resilience Programme

Also announced in the Budget, this programme targets under-employment in rural India, especially in agriculture. It focuses on skilling, technology adoption, and investment, with special emphasis on:

• Rural women

• Young and marginal farmers

• Landless families

Phase 1 will begin in the same 100 agri-districts, using multilateral development bank support and global best practices.

🔹 Mission for Aatmanirbharta in Pulses

To achieve self-reliance in Tur, Urad, and Masoor, a 6-year mission has been launched. Key objectives include:

• Developing climate-resilient, high-protein seeds

• Expanding storage and post-harvest management

• Ensuring remunerative prices via guaranteed procurement by NAFED and NCCF

  
  

🔹 Comprehensive Fruits & Vegetables Programme

Acknowledging India’s rising nutrition awareness, a new programme will focus on:

• Boosting production and supply chains

• Supporting processing infrastructure

• Ensuring fair prices via FPOs and cooperatives

  
  

🔹 Grameen Credit Score Framework

To support rural credit access, Public Sector Banks will launch a Grameen Credit Score system. This framework will help evaluate and serve the credit needs of Self-Help Group (SHG) members and rural borrowers, who often lack formal credit histories.

From budget announcement in February to Cabinet approval in July, the PM Dhan Dhanya Krishi Yojana is now ready for execution. Backed by comprehensive planning, district-level ownership, and real-time monitoring, the scheme holds potential to transform Indian agriculture from the roots up—addressing productivity, resilience, infrastructure, and rural income generation in one unified push.

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