Budget 2025-26 gives big boost to agriculture as 'first engine of growth'

Finance Minister Nirmala Sitharaman identified agriculture as "the first engine" for India’s development journey with the announcement of a slew of measures in Budget 2025-26 to raise farm production and increase the incomes of farmers.

She said that a Makhana Board would be set up in Bihar, to improve the production, processing, value addition, and marketing of makhana (fox nut) as well as support the people engaged in these activities to be organised into Farmer Producer Organisations (FPOs). The Board will provide handholding and training support to makhana farmers and also work to ensure they receive the benefits of all relevant government schemes, she added.

The Minister also stated that a National Mission on High Yielding Seeds will be launched with an aim to strengthen the research ecosystem, targeted development and propagation of seeds with high yield, pest resistance and climate resilience, and commercial availability of more than 100 seed varieties released since July 2024.

Under the Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district programme in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The initiative is expected to benefit 1.7 crore farmers.

She further stated that to provide conservation support to both public and private sectors for genetic resources and ensure future food and nutritional security, a second Gene Bank with 10 lakh germplasm lines will be set up.

The Finance Minister also announced that the government will launch a 6-year mission aimed at achieving self-reliance in pulses, with a special focus on tur and masoor. Central agencies such as the NAFED and the NCCF will be prepared to procure these three pulses from farmers who register with the agencies and enter into agreements. This initiative will run over the next four years, ensuring support and guaranteed procurement for farmers.

Announcing the "Mission for Cotton Productivity", FM Sitharaman highlighted that the five-year mission will facilitate significant improvements in the productivity and sustainability of cotton farming, and promote extra-long-staple cotton varieties. She said the mission will benefit lakhs of cotton-growing farmers as the best of science & technology support will be provided to farmers. Aligned with the government’s integrated 5F vision for the textile sector, the Minister remarked that the mission will help increase the incomes of the farmers as well as ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector.

Noting the importance of Kisan Credit Cards (KCC) in facilitating short-term loans for around 7.7 crore farmers, fishermen, and dairy farmers, the Minister announced the enhancement of loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC.

Besides, FM Sitharaman announced the setting up of a urea plant with an annual capacity of 12.7 lakh metric tons at Namrup in Assam. This, she said will further augment urea supply and help to achieve Atmanirbharta in urea production, along with the recently reopened three dormant urea plants in the Eastern region.