Why in the News?

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) was recently approved by the Union Cabinet as a major reform initiative in the agriculture sector. It aims to converge 36 existing schemes across 11 departments to address regional disparities in agricultural productivity.

What are the aims of PMDDKY (Prime Minister Dhan-Dhaanya Krishi Yojana)?

Address productivity disparities: The scheme aims to reduce inter-State and intra-State disparities in agricultural productivity.
Improve productivity & self-reliance: Focus on higher agricultural productivity, value addition, local livelihood creation, and increased domestic production to ensure self-sufficiency.
Holistic development: Enhance outcomes in agriculture and allied sectors through targeted intervention and convergence of schemes.
Private participation: Encourage local public-private partnerships for enhanced implementation and innovation.

Why is scheme convergence under PMDDKY needed?

Eliminates Fragmentation of Efforts: Earlier, agricultural schemes like PM-KISAN, PMFBY, and Soil Health Card Scheme operated in silos. Eg: A farmer receiving income support under PM-KISAN might not be covered under insurance if PMFBY was poorly implemented in that region. Convergence ensures coordinated benefits.

Targets Low Productivity Districts: PMDDKY identifies 100 low-productivity districts using criteria like cropping intensity, credit flow, and yield gaps. Eg: A district with only 70% of national average yield can be provided tailored interventions by combining schemes like RKVY and Micro-Irrigation Fund.

Improves Resource Efficiency: Unified schemes allow for better fund utilisation, avoiding duplication of services or spending. Eg: Instead of running separate capacity-building programs under different departments, single training programs can be run using pooled funds from both Extension Services and Digital Agriculture Initiatives.

Ensures Uniform Implementation Standards: PMDDKY seeks national uniformity while allowing local customization. Eg: While standards for soil health management may be set centrally, implementation can be adapted to local conditions using district-specific plans.

Compensates for Declining Budget Share: Public investment in agriculture is falling (from 3.53% in 2021-22 to 2.51% in 2025-26 of the Central Plan outlay). Eg: Convergence helps make the most of limited resources by integrating multiple schemes under a single implementation umbrella.

How do ‘District Plans’ aid agricultural reform?

Localized Problem Solving: District Plans allow for the identification of region-specific challenges such as water scarcity, pest outbreaks, or poor seed quality. Eg: In Latur district (Maharashtra), which faces frequent droughts, the district plan prioritized micro-irrigation and watershed development, leading to improved water-use efficiency.

Customised Crop Diversification: District-level planning helps align cropping patterns with agro-climatic conditions and market demand, reducing monoculture dependency. Eg: In Koraput district (Odisha), known for tribal farming, the plan introduced millet promotion and value chain linkages, increasing income and nutritional security.

Efficient Use of Resources and Schemes: Integration of multiple schemes under district plans ensures better fund allocation, resource convergence, and monitoring. Eg: In Barabanki district (Uttar Pradesh), convergence of Soil Health Card, PM-KUSUM, and FPO promotion led to more sustainable and solar-powered farming practices.

What challenges may hinder PMDDKY?

Administrative Coordination Across Departments: With 36 schemes under 11 departments converging, bureaucratic silos and lack of inter-departmental coordination can delay execution. Eg: In Jharkhand, similar convergence under NRLM and agriculture failed initially due to poor communication between the Rural Development and Agriculture departments.

Data Gaps and Poor Baseline Assessment: District-level planning requires granular, updated data on land use, cropping patterns, and farmer needs — often missing or outdated. Eg: In Dantewada (Chhattisgarh), poor digital records led to misallocation of subsidies under earlier agri-reform efforts.

Weak Local Institutions: PACS (Primary Agriculture Cooperative Societies) and local self-governments may lack the capacity to implement and monitor complex plans. Eg: In Banda district (U.P.), PACS struggled to handle seed distribution due to lack of trained staff and digital infrastructure.

Limited Private Sector Engagement in Remote Areas: Private partners may hesitate to invest in low-productivity districts due to poor infrastructure or lack of assured returns. Eg: In Kiphire (Nagaland), agri-businesses withdrew from a millet-processing initiative due to transport and power issues.

Farmer Awareness and Participation: Without sustained IEC (Information, Education, Communication) campaigns, farmers may not understand how to benefit from the converged schemes. Eg: In Barmer (Rajasthan), uptake of soil health and credit-linked schemes remained low due to lack of farmer outreach in vernacular languages.

Way forward:

Ensure Adequate and Sustained Funding: Increase the budgetary allocation for agriculture to reverse the current decline (only 2.51% of Central Plan outlay in 2023-24). Sufficient and stable funding will support better implementation of integrated District Plans.
Leverage Technology and Real-Time Monitoring: Implement digital dashboards for tracking the 117 indicators under PMDDKY and promote data-driven decision-making. This will help improve accountability, efficiency, and timely course corrections.

Mains PYQ:

[UPSC 2016] Considering the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY).

Linkage: The article explicitly states that the PMDDKY will subsume existing Central schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY). Therefore, a question about PMFBY is directly relevant to understanding a key component of this new “one umbrella scheme” approach.

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