New Farm Scheme to Boost 100 Low-Yield Districts

17 Jul 2025 CW Team

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the “Prime Minister Dhan-Dhaanya Krishi Yojana”, a six-year agriculture-focused initiative to be launched from 2025–26. The scheme will target 100 districts across India with low productivity, limited crop intensity, and inadequate credit access.

Inspired by NITI Aayog’s Aspirational District Programme, this is the first scheme of its kind to focus solely on agriculture and allied sectors. It aims to boost agricultural output, encourage crop diversification and sustainable practices, expand post-harvest storage at the block and panchayat levels, improve irrigation, and promote access to both long-term and short-term credit.

Implementation will be through the convergence of 36 existing central schemes across 11 departments, in addition to state schemes and partnerships with the private sector. Districts will be selected based on their share of net cropped area and operational holdings, with at least one district from every state/UT included.

Committees will be formed at the national, state, and district levels for planning, implementation, and monitoring. Each district will prepare a dedicated Agriculture and Allied Activities Plan under the District Dhan-Dhaanya Samiti, which will include progressive farmers.

Plans will align with national goals such as crop diversification, soil and water conservation, natural and organic farming, and agricultural self-sufficiency. Progress will be tracked monthly using 117 key performance indicators via a dedicated dashboard, with oversight from Central Nodal Officers and NITI Aayog.

The scheme is expected to raise productivity, boost value addition, enhance livelihoods, and strengthen India’s self-reliance in agriculture. As outcomes improve in these districts, national indicators are also projected to rise steadily.

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