India has launched the PM Dhan-Dhaanya Krishi Yojana (2025), a new flagship scheme targeting 100 agriculture-lagging districts for integrated development. As reported by UPSC Study Material, this scheme signals a shift from uniform national schemes to geographically targeted interventions - a key UPSC Current Affairs topic for 2025. The initiative aims to increase productivity, improve post-harvest infrastructure, provide affordable credit, and improve farmer income through district-level convergence of existing schemes.
The agricultural sector has demonstrated steady growth over recent years, with 4.4% annual growth at constant prices over the past five years. As reported by Mint, in Q2FY26 (July-September), the sector recorded 3.5% growth. Over the past decade (FY16-FY25), agriculture grew at 4.45%, with gains driven by livestock (7.1%) and fisheries (8.8%), while crops expanded at a slower 3.5%. The focus now shifts from increasing production to improving output per worker and per acre.
The fertilizer sector faces significant challenges with total fertilizer consumption reaching 32.93 million tonnes in 2024-25 at a fertilizer use intensity of 151 kg/ha. According to Global Agriculture, the average fertilizer consumption ratio of 9.3:3.5:1 is highly skewed towards nitrogen, while around 80% of natural gas used in urea production is imported. The sector remains heavily import-dependent, especially for phosphorus and potassium, leading to high foreign exchange outflows and a substantial subsidy burden that reached ₹1.71 lakh crore in 2024-25. Inefficient fertilizer use further constrains productivity, as crops utilize only 30-50% of nitrogen, 15-25% of phosphorus, and 50-60% of potassium.
Madhya Pradesh exemplifies the new approach with district-level roadmaps focusing on efficient water use, crop diversification, climate-resilient practices, and stronger market linkages. As reported by Mint, these roadmaps are envisaged as data-driven blueprints outlining suitable crops, horticulture varieties, pulses and high-yielding seeds for each region. The PM Dhan-Dhaanya Yojana will handle implementation, coordinating with local agencies and monitoring outcomes, with farmers potentially benefiting from better crop planning, improved input access, and higher yields. The scheme targets districts where average holding size has fallen to 0.74 hectares - too small for economies of scale.
The success of these roadmaps hinges on effective execution, with potential challenges including lack of reliable granular data on soils, water resources and cropping patterns, and funding constraints affecting irrigation and technology adoption rollout. According to Mint, farmer adoption remains a hurdle due to risks and market uncertainties, while weak market linkages including storage and procurement systems could undermine diversification efforts. The approach represents a shift from one-size-fits-all policies to region-specific interventions designed to improve agricultural productivity and rural prosperity. The PM Dhan-Dhaanya Yojana addresses farmer indebtedness, with 52% of rural households currently in debt and average institutional borrowing of ₹32,484 per household.
