Agriculture Budget 2025-26

Introduction

• While public focus was on middle-class tax relief, the Budget also introduced key agricultural reforms.
• Measures aim to increase productivity, enhance crop diversification, and improve credit access for farmers.

Prime Minister Dhan-Dhanya Krishi Yojana

• The Aspirational Districts Programme is an inspiration to this program.
• This focuses on the 100 low-productivity districts with a focus on increasing crop productivity, crop diversification, and access to both long- and short-term credit.
• This will help around 17 million farmers who belong to the poorer end of the income scale.

Six-Year Mission for Pulse Self-Sufficiency

• Targets tur (pigeon pea), masoor (lentil), and urad (black gram).
• Central agencies to procure farmers’ produce for four years, ensuring price stability.
• Aims to reduce dependence on wheat-paddy cycles, especially in Punjab and Haryana.

High-Yielding Seeds and Cotton Productivity Missions

• Focus on developing high-yield seeds to improve productivity.
• Cotton mission aims at enhancing cotton yield and quality to enhance farm incomes.

New Initiatives in Horticulture and Fisheries

• Fruit & Vegetable Programme to address the changing pattern of consumer preference.
• Makhana Board in Bihar to boost production and exports.
• Fisheries sector framework to promote sustainability and export opportunities.

Increasing the Loan Limit of Kisan Credit Card (KCC)

• Loan limit is *increased from ₹3 lakh to ₹5 lakh under the modified interest-subvention scheme. Nearly 77 million farmers benefit from KCC to access cheaper credit.

Rural Prosperity and Resilience Programme

• State partnerships for rural development via: Skill development Technology adoption.

Budget Distribution and Economic Output

• The Agriculture sector will account for a significant 22% increase up to ₹1.71 trillion.
• The economy will also find agriculture one among the four most significant engines driving economic growth.
• As Half of the work force depends upon agriculture productivity increase will, thereby, boost the rural income and enhance the overall consumer demand in the market.
• Affordable food prices

Challenges & Areas for Improvement

• Shifting the workforce out of agriculture remains a more supra policy challenge.
• Food inflation still worries RBI’s monetary policy.
• Weather-related risks threaten productivity. More investment in R&D is essential.
• Only a marginal increase in funding of agricultural research is a missed opportunity for long-term innovating.