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PM Dhan-Dhaanya Krishi Yojana: Objectives & Challenges

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  • Context (TH): Recently, the Union Cabinet approved the Prime Minister Dhan‑Dhaanya Krishi Yojana (PMDDKY), a landmark umbrella initiative designed to boost agricultural productivity and promote self-reliance by integrating 36 central schemes spanning 11 departments.

About Prime Minister Dhan-Dhaanya Krishi Yojana

  • It is a Central Sector Scheme aimed at increasing agricultural productivity with 100% Central funding.
  • Objective: Inspired by the Aspirational Districts Programme (ADP), PMDKY aims to enhance agricultural productivity and self-reliance by targeting low-performing districts through value addition, income generation, rural livelihood promotion, and balanced regional growth.

GS Schemes Prime Minister Dhan Dhaanya Krishi Yojana

Convergence and Funding

  • Merging Schemes: Consolidates 36 schemes from 11 departments for streamlined implementation.
  • Annual Outlay: ₹24,000 crore allocated annually for six years to fund the scheme.
  • Private Partnerships: Collaborations with the private sector will enhance scheme implementation.

Targeted Approach and District Selection

  • ADP: Modelled after the Aspirational Districts Programme, targets 100 underperforming districts.
  • Small Farmers: Prioritises small and marginal farmers to improve productivity and inclusion.
  • Data-Driven: NABARD and the Department of Financial Services will select districts based on low agricultural productivity, low cropping intensity, and low access to institutional credit.

Implementation and Monitoring

  • District Plans: District Dhan Dhaanya Samitis will create plans aligned with national agricultural goals.
  • Committees: Committees at district, state, and national levels will oversee implementation & progress.
  • Monthly Tracking: 117 KPIs will be tracked via a centralised dashboard for monthly progress reviews.
  • Central Nodal Officers: Appointed for each district to ensure smooth execution and tracking.

Technology and Empowerment

  • Tech Integration: Implements GIS mapping, AI advisories, and sensor-based monitoring for efficiency.
  • Credit Access: Expands Kisan Credit Cards (KCC) and strengthens rural banking networks.
  • Farmer Empowerment: Strengthens Krishi Vigyan Kendras (KVKs) and FPOs for market access.

Objectives

  1. Enhancing Agricultural Productivity: Encouraging improved farming techniques and scientific interventions.
  2. Crop Diversification & Sustainable Practices: Promoting climate-resilient crops to reduce dependence on water-intensive crops.
  3. Strengthening Post-Harvest Infrastructure: Establishing storage and processing facilities at Panchayat and Block levels.
  4. Improving Irrigation Facilities: Promoting efficient irrigation techniques such as drip and sprinkler irrigation.
  5. Expanding Credit Access: Ensuring availability of both short-term and long-term credit for farmers.

Agricultural Transformation in India & Its Need

  • Improving Productivity: Despite employing 45% of the workforce, productivity in key sectors like pulses and oilseeds remains low, limiting India’s ability to meet growing food demand.
  • Climate Resilience: Climate change is increasing rainfall variability by 15-20% by 2050, disrupting crop yields and food security.
  • Water Efficiency: With 55% of agriculture rainfed and only 38% water use efficiency, there is a need for better irrigation systems and water conservation.
  • Infrastructure Development: Poor storage and processing lead to 35-40% post-harvest losses, necessitating improvements to reduce wastage and enhance market access.
  • Rural Economic Empowerment: 80% of farmers are smallholders, earning ₹1.2 lakh annually. Transformation is needed to boost income and financial inclusion for small farmers.

Challenges in Agricultural Transformation

  • Timely Fund Allocation: Delays in fund allocation hinder scheme implementation, with 50% of funds often underutilised due to procedural inefficiencies.
  • State-Level Implementation Issues: Variations in execution across states, driven by local governance and resource constraints, lead to delays, as seen in Bihar and Uttarakhand.
  • Climate Change Impact: Increasing weather variability, including 15-20% higher rainfall variability by 2050, disrupts crop yields and agricultural productivity.
  • Limited Financial Literacy Among Farmers: Low financial awareness prevents farmers from accessing credit, insurance, and subsidies, with only 30% of farmers using formal credit systems.
  • Poor Infrastructure: Inadequate storage, transportation, and processing infrastructure leads to 35-40% post-harvest losses in key crops like fruits and vegetables, especially in remote areas.
  • Water Scarcity and Irrigation Challenges: 55% of Indian agriculture is rainfed, making it highly vulnerable to water scarcity, with only 38% water use efficiency in agriculture.

Way Forward for Agricultural Transformation

  • Timely Fund Allocation: Streamline budget allocation with dedicated support to ensure efficient fund utilisation and timely scheme execution.
  • State-Level Implementation: Strengthen coordination with State Agriculture Departments and implement real-time monitoring tools to ensure consistent progress across states.
  • Climate-Resilient Agriculture: Promote climate-resilient crops & water-efficient practices like drip irrigation. E.g., Tamil Nadu’s System of Rice Intensification (SRI), which boosted productivity by 30-35%.
  • Financial Literacy and Inclusion: Expand Digital Kisan Platforms for easy access to credit, subsidies, and insurance, and link them to Kisan Credit Cards (KCC) for faster disbursement.
  • Infrastructure Development: Build storage facilities at the Panchayat level and encourage PPP models to reduce post-harvest losses, which are around 35-40% for perishables.
  • Water Use Efficiency: Promote micro-irrigation systems and utilise PMKSY to increase water use efficiency, which currently stands at just 38%.

The Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY) offers a transformative step toward revitalising India’s agricultural sector. By focusing on enhancing productivity, improving infrastructure, and ensuring financial inclusion, the scheme aims to create a more resilient and sustainable agricultural ecosystem, benefiting 1.7 crore farmers and contributing to India’s rural prosperity.

Reference: The Indian Express

PMF IAS Pathfinder for Mains – Question 81

Q. To achieve food security and rural prosperity, agricultural transformation in India is inevitable. Discuss the challenges and suggest a comprehensive strategy for sustainable agricultural development. (250 Words) (15 Marks)

Approach

  • Introduction: Briefly Introduce the answer by defining the vitality of agriculture in India.
  • Body: Discuss the challenges in Indian agriculture and strategy for sustainable agriculture in India.
  • Conclusion: Write a conclusion highlighting need of agricultural transformation and a holistic approach.

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