India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget for 2025-26 on February 1, 2025, outlining several initiatives aimed at strengthening the agricultural sector and improving its sustainability, productivity and inclusivity. The budget places a clear emphasis on addressing the challenges faced by farmers, enhancing rural prosperity, and adopting innovative agricultural technologies.
The budget for the Department of Agriculture and Farmers Welfare rose from INR 11,915.22 crore in 2008-09 to INR 1,22,528.77 crore in 2024-25, demonstrating a clear commitment to strengthening the agricultural sector. The budget includes specific funds for various missions, such as INR 1,000 crore for a pulse mission, INR 500 crore for vegetables and fruits and INR 100 crore for the establishment of a Makhana Board in Bihar.
Key Initiatives to Boost Agricultural Productivity
The government has introduced several programs to support the agricultural sector, beginning with the Prime Minister Dhan-Dhaanya Krishi Yojana. This initiative will target 100 districts with low productivity and limited credit access. The scheme aims to benefit 1.7 crore farmers by focusing on increasing agricultural productivity through advanced farming techniques, promoting crop diversification, improving irrigation infrastructure and developing post-harvest storage facilities. Furthermore, it will enhance credit availability, making it easier for farmers to access both short-term and long-term financial support.
Technology and Extension Services to Drive Growth
The government has placed a special focus on promoting agricultural extension and the adoption of new technologies. Through the Sub-Mission on Agricultural Extension (SMAE), the aim is to improve farm practices and enhance sustainability by providing farmers with the knowledge needed to increase productivity. Furthermore, digital infrastructure is being integrated into farming practices to facilitate precision agriculture and optimize resource management. The budget also emphasizes the development of climate-resilient crops and the promotion of research in high-yielding seed varieties through the National Mission on High-Yielding Seeds.
Support for Rural Empowerment and Inclusivity
The union budget introduces several programs designed to empower marginalized groups within the agricultural sector. The Rural Prosperity and Resilience Program focuses on addressing underemployment in rural areas through skill development, technological integration and economic investment. Special attention will be given to women, young farmers, and landless families, promoting their active participation in agriculture. The program will also seek to create new opportunities in rural areas, thus reducing the need for migration.
Enhanced Focus on Pulses and Vegetables
The Union Budget also includes a six-year Mission for Aatmanirbharta in Pulses, aimed at improving self-sufficiency in pulses. The mission will focus on developing climate-resilient seeds, improving productivity, and enhancing post-harvest storage. The government is committed to ensuring remunerative prices for pulses such as tur, urad, and masoor, while procurement agencies will be ready to buy pulses from registered farmers. This initiative is expected to provide long-term benefits for pulse growers and increase domestic production.
In a similar vein, a Comprehensive Programme for Vegetables and Fruits will be launched to improve production, supply efficiency, and processing, while ensuring that farmers receive fair prices for their produce. This program will be implemented in partnership with states and supported by farmer producer organizations and cooperatives to strengthen the agricultural value chain. The government has also announced a five-year mission to boost cotton productivity, particularly focusing on extra-long staple varieties.
Institutional Support for Rural Finance
Another major proposal includes the development of a Grameen Credit Score framework by public sector banks. This initiative aims to address the credit needs of self-help group (SHG) members and the rural population, ensuring better financial inclusion for those engaged in agricultural and allied activities.
Continued Support for Agricultural Infrastructure
The Agricultural Infrastructure Fund (AIF), which was launched with an investment target of INR 1 lakh crore, continues to receive strong support. As of December 2024, INR 52,738 crore has been sanctioned for over 87,500 projects aimed at improving post-harvest management infrastructure and community farming assets. This initiative is critical for enhancing agricultural infrastructure and ensuring better storage, processing, and marketing capabilities for farmers. The e-NAM platform now integrates 1,410 mandis, benefiting millions of farmers.
Millet Development and Global R&D Hub
The government has been focusing on promoting millets, considering their nutritional benefits. A Global R&D Hub for Millets was announced, with an allocation of INR 250 crore for the period 2023-2026 in the union budget. As a result, millet production has increased, reaching 175.72 lakh tonnes in 2023-24. The government has also established 25 seed hubs in collaboration with the Indian Council of Agricultural Research (ICAR) to provide high-quality millet seeds. These efforts aim to position India as a global leader in millet production and export.
Long-Term Agricultural Growth and Support for Farmers
In the last decade, the agricultural sector has seen significant growth, with food grain production rising from 204.6 million tonnes in 2004-05 to an estimated 332.3 million tonnes in 2023-24. The government in this union budget has also ensured better Minimum Support Prices (MSP) for key crops, such as paddy and wheat, which have seen substantial increases over the years. Additionally, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) income support scheme has provided INR 3.46 lakh crore to over 11 crore farmers since its launch in 2019.
Institutional Credit and Insurance Schemes for Farmers
The union budget also includes provisions to strengthen institutional credit for farmers. The Kisan Credit Card (KCC) scheme has been expanded and agricultural loans have increased, benefiting small and marginal farmers. The loan limit under the Kisan Credit Card scheme will be increased from INR 3 lakh to INR 5 lakh, providing farmers with enhanced access to credit for agricultural needs. Furthermore, the Pradhan Mantri Fasal Bima Yojana (PMFBY), a crop insurance scheme, has seen significant participation, with over INR 1.65 lakh crore in claims paid to farmers since its inception.
Union Budget’s Sustainable Agriculture
The government’s union budget for 2025-26 emphasizes agriculture as a key driver of economic development. A National Mission on High Yielding Seeds will be launched to focus on developing pest-resistant, climate-resilient seeds. Furthermore, the establishment of a second gene bank with 10 lakh germplasm lines will support conservation and ensure food security.
Sustainable Fisheries Development
The fisheries sector will also receive attention with a special focus on the Andaman & Nicobar Islands and Lakshadweep. The government will create a framework for sustainable fisheries harnessing, which is expected to boost marine production and ensure the sector’s long-term viability.
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Key Nutrition Schemes Enhancing Food Security
Public Distribution System (PDS)
The Public Distribution System (PDS) was established to manage food scarcity by distributing food grains at affordable prices. Over time, it has become a key part of the Government’s food economy management strategy. Key achievements include the 100% digitization of ration cards and beneficiaries’ data under the National Food Security Act (NFSA) in all States and UTs, ensuring transparency for over 20.5 crore ration cards and around 80.5 crore beneficiaries.
Additionally, more than 99.8% of ration cards have been Aadhaar-seeded, and nearly 99.6% of Fair Price Shops (FPSs) have been automated with electronic Point of Sale (ePoS) devices for transparent food grain distribution. More than 97% of food grain transactions are Aadhaar-authenticated.
PM POSHAN Scheme
The PM POSHAN Scheme, formerly known as the Mid-Day Meal Scheme, aims to improve school enrollment and retention by providing nutritional support to school children. The scheme, now expanded to include upper primary classes, has a substantial budget of ₹1,30,794.90 crore over five years. This funding includes contributions from the Central Government, State Governments, and additional support for food grains.
PM Formalization of Micro Food Processing Enterprises Scheme (PMFME)
The PMFME Scheme offers financial and technical support for upgrading micro food processing enterprises and establishing new units. The scheme has led to an increase in the number of food processing units and job creation, with over 54,700 units established and nearly 1.89 lakh jobs generated.
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)
Launched in 2020 during the COVID-19 pandemic, PMGKAY provides free food grains to 81.35 crore NFSA beneficiaries. This scheme continues to offer 5 kg of rice or wheat per person per month for the next five years.
POSHAN Abhiyaan
POSHAN Abhiyaan, launched in 2018, seeks to improve the nutritional status of children, adolescent girls, and women. By 2024, the program reached over 10.12 crore beneficiaries. India has also launched initiatives such as the “Shree Anna” branding of millets, marking a significant milestone in food and nutrition security. These schemes collectively contribute to enhancing food security, nutrition, and economic opportunities across the nation.
The Union Budget 2025-26 aims to foster long-term growth in agriculture by focusing on productivity, sustainability, and inclusivity. With strategic investments in infrastructure, technology, and financial support, the government seeks to enhance the livelihoods of farmers while ensuring food security and improving the rural economy.