Govt clears farm scheme with Rs 24k cr annual outlay for 6 yrs, to be implemented from Oct

New Delhi | The Union Cabinet on Wednesday approved 'Prime Minister Dhan-Dhaanya Krishi Yojana' with an annual outlay of Rs 24,000 crore for six years to boost crop yields in 100 districts, benefiting about 1.7 crore farmers.

The scheme, approved in the cabinet meeting headed by Prime Minister Narendra Modi, will kick start from October, during the rabi (winter) season.

The plan is in pursuance of the Budget announcement for 2025-26 to develop 100 districts to enhance agricultural productivity, increase adoption of crop diversification and sustainable agricultural practices.

The scheme will be implemented through the convergence of 36 existing schemes across 11 departments, other state schemes and local partnerships with the private sector, I&B Minister Ashwini Vaishnaw said while briefing reporters about the cabinet decisions.

He said the scheme will benefit about 1.7 crore farmers.

"Preparations for the implementation of the scheme have already begun. ...Training and awareness campaign will start in August," Agriculture Minister Shivraj Singh Chouhan told reporters on the sidelines of an event.

"We will implement the scheme from October, when rabi sowing begins," he said.

Chouhan said there are yield gaps between states and districts despite a sharp increase in the production of foodgrains, horticulture and milk in the last 11 years.

Apart from enhancing the crop yields, the scheme will also focus on the adoption of crop diversification and sustainable agricultural practices, augment post-harvest storage at the panchayat and block levels, improve irrigation facilities and facilitate availability of long-term and short-term credit.

The minister said 100 districts will be identified based on three key indicators of low productivity, low cropping intensity, and less credit disbursement.

The number of districts in each state/UT will be based on the share of net cropped area and operational holdings. However, a minimum of 1 district will be selected from each state.

He further said that committees will be formed at the district, state and national levels for effective planning, implementation and monitoring of the scheme.

A District Agriculture and Allied Activities Plan will be finalised by the District Dhan Dhaanya Samiti, which will also have progressive farmers as members.

The district plans will be aligned with the national goals of crop diversification, conservation of water and soil health, self-sufficiency in agriculture and allied sectors, as well as expansion of natural and organic farming. Progress of the scheme in each Dhan-Dhaanya district will be monitored on 117 key performance indicators through a dashboard on a monthly basis.

Niti will also review and guide the district plans. Besides, Central Nodal Officers appointed for each district will also review the scheme on a regular basis.

"As the targeted outcomes in these 100 districts will improve, the overall average against key performance indicators will rise for the country," an official release said.

The Prime Minister Dhan-Dhaanya Krishi Yojana will result in higher productivity, value addition in agriculture and allied sector, local livelihood creation and hence increase domestic production and achieve self-reliance (Atmanirbhar Bharat), it added.

As the indicators of these 100 districts improve, the national indicators will automatically show an upward trajectory.

Commenting on the scheme, Anish Shah, Group CEO & MD, Mahindra Group, said, "...this initiative has the potential to unlock rural prosperity, drive crop diversification, and accelerate the adoption of sustainable practices".