Union Budget 2025-26 for The Agriculture Sector

On 1 February 2025, Finance Minister Nirmala Sitharaman proposed the Union Budget for 2025–2026. The agriculture sector saw a lot of positive changes for the Union budget 2025-2026.

Before the union budget, the agriculture industry anticipated that the government would prioritize agri-tech advancement, rural infrastructure development, and the promotion of sustainable practices including water conservation and organic farming. investments in crop insurance and digital connectivity.

Updated On - 05 Sep 2025

Key Highlights of Union Budget 2025-2026 on Agriculture Sector

  1. The government has collaborated with states to implement the ‘Prime Minister Dhan-Dhaanya Krishi Yojana.’ This initiative aims to cover 100 districts with below-average credit criteria, moderate crop intensity, and low production by combining current programs with specific measures.
  1. The scheme focuses on five key objectives: improving agricultural productivity through better farming practices, promoting crop diversification to reduce dependency on a single crop, and encouraging sustainable agriculture techniques that benefit the environment. It also aims to enhance post-harvest storage facilities at the panchayat and block levels, which will reduce losses and improve market access.
  1.  Additionally, the scheme looks to improve irrigation infrastructure to ensure consistent water supply and make both short-term and long-term loans more accessible to farmers. In total, this initiative is expected to benefit around 1.7 crore farmers, improving their overall productivity and financial security.
  1. In collaboration with states, a comprehensive multi-sectoral initiative called ‘Rural Prosperity and Resilience’ will be introduced. With the use of technology, investment, skill development, and boosting the rural economy, this will alleviate underemployment in agriculture. The objective is to create enough possibilities in rural regions so that migration is a choice rather than a requirement.
  1. The program will target marginal and small farmers, landless families, young farmers, and rural women. Annexure A contains details.
  1. Best practices from both domestic and international sources will be integrated, and multilateral development banks will be consulted for the necessary financial and technical support. One hundred developing agri-districts will be covered in Phase 1.

Highlights of Union Budget FY 2024-25 on Agriculture Sector

Budget Provision

  1. Provision of Rs. 1.52 lakh crore for agriculture and allied sectors this year.

Transforming Agriculture Research

  1. A comprehensive review of the agriculture research setup.
  1. Focus on raising productivity and developing climate-resilient varieties.
  1. Funding is provided in challenge mode, including to the private sector.
  1. Oversight by domain experts from both the government and private sector.

Release of New Varieties

  1. Release 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops for farmers.

Natural Farming

  1. Initiate one crore farmers into natural farming over the next two years.
  1. Support through certification and branding.
  1. Implementation by scientific institutions and willing gram panchayats.
  1. Establish 10,000 need-based bio-input resource centres.

Missions for Pulses and Oilseeds

  1. Strengthen production, storage, and marketing of pulses and oilseeds.
  1. Strategy for achieving self-sufficiency ('atmanirbharta') in oilseeds such as mustard, groundnut, sesame, soybean, and sunflower.

Vegetable Production & Supply Chains

  1. Develop large-scale clusters for vegetable production near major consumption centres.
  1. Promote Farmer-Producer Organisations, cooperatives, and start-ups for vegetable supply chains, including collection, storage, and marketing.

Digital Public Infrastructure for Agriculture

  1. Implement Digital Public Infrastructure (DPI) in agriculture in partnership with states.
  1. Cover farmers and their lands within three years.
  1. Conduct a digital crop survey for Kharif in 400 districts this year.
  1. Include details of 6 crore farmers and their lands in farmer and land registries.
  1. Enable issuance of Jan Samarth-based Kisan Credit Cards in five states.

Shrimp Production & Export

  1. Provide financial support for setting up Nucleus Breeding Centres for Shrimp Broodstocks.
  1. Facilitate financing for shrimp farming, processing, and export through NABARD.

National Cooperation Policy

  1. Introduce a National Cooperation Policy for systematic and all-round development of the cooperative sector.
  1. Aim to fast-track rural economic growth and generate large-scale employment opportunities.

Highlights of Interim Union Budget 2024 on Agriculture Sector

  1. The government aims to encourage both private and public investment in post-harvest activities.
  2. The application of Nano-DAP will be extended to cover all agro-climatic zones. A strategic plan under the Atmanirbhar Oilseeds Abhiyaan will be devised to attain self-sufficiency in oilseeds production.
  3. Additionally, a comprehensive program for the development of the dairy sector will be formulated.
  4. Efforts will be intensified to implement the Pradhan Mantri Matsya Sampada Yojana, aimed at enhancing aquaculture productivity, doubling exports, and creating more job opportunities.
  5. There will be an increased allocation of funds for the Blue Revolution, totaling up to Rs.2,352 crore.
  6. Similarly, the allocation for the PM Formalisation of Micro Food Processing Enterprises scheme will be raised to Rs.880 crore.
  7. The Ministry of Agriculture and Farmer's Welfare has been allocated a budget of Rs.1.27 lakh crore.
  8. Direct financial assistance will be provided to 11.8 crore farmers under the PM-KISAN scheme.
  9. Additionally, crop insurance coverage will be extended to 4 crore farmers through the PM Fasal Bima Yojana.
  10. Furthermore, the integration of 1,361 mandis under eNAM will support trading volumes amounting to ₹3 lakh crore.

Highlights of Union Budget 2023-24 in Agriculture Sector

  1. Agri-startups by young entrepreneurs will be supported by the launch of an Agriculture Accelerator Fund.
  2. The agricultural credit will be raised to Rs.20 trillion, with an emphasis on dairy, fisheries, and animal husbandry.
  1. A new sub-scheme of the PM Matsya Sampada Yojana will be introduced with a targeted investment of Rs.6,000 crore to further enable the activities of fish vendors, fishermen, and micro- and small businesses, increase the efficiency of the value chain, and broaden the market.
  2. The Center will empower 10 million farmers to switch to natural farming.
  3. To assist farmers in storing their produce and obtaining fair prices through timely sales, a sizable decentralised storage capacity will be set up.
  4. A Digital Public Infrastructure for Agriculture will be created as an open source, open standard, and interconnected general welfare. It will make it possible for solutions that are inclusive of farmers and help to increase access to farm inputs, market intelligence, and support for startups in the agriculture sector.
  5. To encourage states and Union Territories to use alternative fertilisers, PM PRANAM will also be introduced.
  1. A Rs.2,516 crore investment was made to start computerising 63,000 Primary Agricultural Credit Societies (PACS).
  2. The Indian Institute of Millet Research, Hyderabad, will be supported as the Center of Excellence for Sharing Best Practices, Research, and Technologies at the International Level in order to make India a global hub for "Shree Anna".
Read More Info on  Budget Expectations 2025  

Highlights of Union Budget 2022-23 in Agriculture Sector

  1. Agriculture and rural startups will receive funds from NABARD.
  2. The government will ensure wheat and paddy farmers get assured income by making direct payments of Rs.2.37 lakh crore for minimum support price (MSP) from April 2022 to March 2023.
  3. Oilseed cultivation will be expanded to reduce dependency on imports and production of millet will be encouraged.
  4. Kisan drones will be employed for crop assessments, digitalisation of land records, spraying of pesticides and nutrients.
  5. Chemical-free natural farming will be promoted all over India which will help farmers improve their income as well as sustainable agricultural productivity.
  6. About 9 lakh farmers will benefit from the Ken-Betwa River linking project. A total of Rs.44,000 crore has been earmarked for this project.

In the 2020-21 Union Budget presented by Finance Minister Nirmala Sitharaman, the Ministry of Agriculture and Farmers' Welfare has been allocated Rs.1,31,531 crore. The government has given a clear signal to rural India that it is committed to its their cause.

Highlights of Union Budget 2020-21 as announced by the Finance Minister on 1 February 2021

  1. The government has reduced the excise duty component to compensate for the additional cess.
  2. The target for agricultural credit has been increased to Rs.16.5 lakh crores in order to ensure availability of higher credit to farmers and for sectors like animal husbandry, diary, and fisheries.
  3. Allocation towards rural infrastructure development fund is proposed to be increased to Rs.40,000 crore by 2021-22.
  4. Water conservation commitment stands further enhanced since the Micro Irrigation Fund corpus has been increased to Rs.10,000 crore via NABARD.
  5. SWAMITVA scheme will be extended to all states and union territories
  6. 2 perishable products to be included under 'Operation Green Scheme' and will ensure strengthening these crops' production clusters
  7. 1,000 more mandis to be integrated with e-NAM to help boost transparency in the Agri markets
  8. Setting up a multi-purpose seaweed park in Tamil Nadu proposed to help leverage country's vast ocean resources and R&D capabilities.

Highlights of Union Budget 2019 on Agriculture Sector

  1. Rs.1,30,485 crore has been allocated to the Ministry of Agriculture for the year 2019-20.
  2. Rs.79,996 crore has been allocated to the Fertiliser Subsidy for the year 2019-20.
  3. Budgetary estimate for Agriculture Ministry for FY2019-20 is 140% higher than FY2018-19 at Rs.57,600 crore, due to the Rs.75,000 crore allocation to Pradhan Mantri Kisan Samman Nidhi (PM-Kisan). However, this is Rs.10,000 crore lesser than the estimate in the interim budget.
  4. Union Budget 2019-20 is focused on promoting innovative pilots of 'zero budget farming' across India to bring down fertiliser dependency.
  5. Rs.3,737 crore has been allocated to the Ministry of Fisheries, Animal Husbandry and Dairying. Out of which, Rs.805 crore has been allocated to Pradhan Mantri Matsya Sampada Yojana (PMMSY) for the purpose of addressing important gaps in the value chain which includes production, modernisation, quality control, traceability, infrastructure, post-harvest management, and productivity.
  6. Allocation to Pradhan Mantri Krishi Sinchai Yojana (PMKSY) remains Rs.3,500 crore as proposed in the interim budget. Union Budget FY2019-20 is focused on creating 10,000 new farm producer organisations (FPOs) in the next 5 years to improve economies of scale.
  7. The Budget is focused on setting up 20 technology business incubators (TBIs) and 80 livelihood business incubators (LBIs) to develop 75,000 skilled entrepreneurs in the agro-rural industry sector.

News about Union Budget on Agriculture Sector

Union Budget 2025: Government announces launch of 'Rural Prosperity and Resilience' programme

In the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced the launch of the 'Rural Prosperity and Resilience' programme. This is a collaborative initiative with state governments. This programme aims to enhance agricultural productivity, promote sustainable practices, and improve the livelihoods of rural communities.

The key components of this programme include adopting modern farming techniques, diversifying crops, developing post-harvest storage facilities, improving irrigation infrastructure, and facilitating access to credit for farmers. The initiative is expected to directly benefit 1.7 crore farmers, fostering inclusive growth and strengthening the rural economy.

1 February 2025
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