Cabinet approves Prime Minister Dhan-Dhaanya Krishi Yojana

PM Narendra Modi-led Union Cabinet on Wednesday approved the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ for a period of six years, beginning with 2025-26 to cover 100 districts.

Prime Minister Dhan-Dhaanya Krishi Yojana draws inspiration from NITI Aayog’s Aspirational District Programme and focuses exclusively on agriculture and allied sectors, the Union Cabinet said in a note.

The scheme aims to enhance agricultural productivity, increase 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 scheme will be implemented through convergence of 36 existing schemes across 11 departments, other state schemes and local partnerships with the private sector.

It follows the Budget announcement for 2025-26 to develop 100 districts under “Prime Minister Dhan-Dhaanya Krishi Yojana”.

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 and union territory (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.

Committees will be formed at district, state and national level 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 government said.

The district plans will be aligned to 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 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, the Union Cabinet said in its note. “The scheme will result in higher productivity, value addition in agriculture and allied sector, local livelihood creation and hence increase domestic production and achieving self-reliance (Atmanirbhar Bharat). As the indicators of these 100 districts improve, the national indicators will automatically show an upward trajectory,” the note said.

Commenting on the scheme, Anish Shah, Group CEO & MD of Mahindra Group , said: “The Prime Minister Dhan-Dhaanya Krishi Yojana is a bold and visionary step toward transforming Indian agriculture at the grassroots level. By focusing on 100 districts with targeted support and convergence across schemes, this initiative has the potential to unlock rural prosperity, drive crop diversification, and accelerate the adoption of sustainable practices.”

“At Mahindra, we remain deeply committed to partnering in this national mission, through our work in farm equipment, agri-tech innovations, and rural financing to help farmers enhance productivity, build resilience, and create value across the agri value chain. This is a significant leap toward self-reliance in agriculture and inclusive rural development,” Shah added.

The initiative, set to be implemented across 100 districts, represents a pioneering effort dedicated exclusively to the advancement of agriculture and allied sectors, said Union minister of road transport and highways Gadkari.