@ RK, I think you may add manure to soil to increase water and nutrient holding capacity as well as increase in organic matter content.

Dr J C Tarafdar thank you for your contribution to the discussion

For holding capacity of water in the soil to add organic matter (compost, manures, or other stable organic materials) enhances your soil's ability to absorb water. Other than this some additive is also important, these additives include sphagnum peat moss, ordinary compost, manure, grass clippings, wood chips, coconut coir, and straw. Clays can absorb and hold onto large amounts of water because of their sheet structure and large surface area.

Dr Prem Baboo thank you for your contribution to the discussion

Increased soil organic matter enhances your soil's ability to absorb water, leading to less water stress during both dry and wet periods. This can be achieved by: Incorporate compost, manures, or other stable organic materials. Grow and incorporate a high biomass cover crop. The water holding capacity for sand is low. Soil organic matter (SOM) is another factor that can help increase water holding capacity. Soil organic matter has a natural magnetism to water. If the farm increases the percentage of soil organic matter, the soil water holding capacity will increase. Increased soil organic matter enhances your soil's ability to absorb water, leading to less water stress during both dry and wet periods. This can be achieved by: Incorporate compost, manures, or other stable organic materials. Grow and incorporate a high biomass cover crop. Because the total and available moisture storage capacities are linked to porosity, the particle sizes (texture) and the arrangement of particles (structure) are the critical factors. Organic matter and carbonate levels and stone content also affect moisture storage. The addition of organic matter to the soil usually increases the water holding capacity of the soil. This is because the addition of organic matter increases the number of micro-pores and macro-pores in the soil either by “gluing” soil particles together or by creating favorable living conditions for soil organisms. Soil organic matter, its stable components and its transient components can strongly improve nutrient availability and acquisition by higher plants. Soil organic matter also strongly affects nutrient storage and its availability in soils. Organic manure application enhances organic matter content, and better soil structures retain more water, improving soil water retention capacity. Organic matter causes soil particles to bind and form stable soil aggregates, which improves soil structure. With better soil structure, water infiltration through the soil increases and improves the soil's ability to absorb and hold water as well as reduces the potential for surface crusting of the soil.