Budget 2025: FM Sitharaman announces measures aimed to benefit 1.7 cr farmers of India

In a significant policy shift aimed at boosting agri-productivity and rural prosperity, Finance Minister Nirmala Sitharaman on Saturday announced six new agricultural schemes while increasing the subsidised Kisan Credit Card loan limit to Rs 5 lakh from the existing Rs 3 lakh, benefiting 7.7 crore farmers, fishermen, and dairy farmers.

The announcements came even as the government proposed a 2.75 per cent lower Budget allocation for the agriculture ministry at Rs 1.37 lakh crore for the next fiscal.

However, this reduction was offset by enhanced allocations for allied sectors, with fisheries, animal husbandry and dairying seeing a 37 per cent increase to Rs 7,544 crore, and food processing receiving a 56 per cent boost to Rs 4,364 crore.


The total Budget allocation for agriculture, allied sectors, and food processing is pegged at Rs 1.45 lakh crore for 2025-26, expected to surpass the current year's revised estimate of Rs 1.47 lakh crore once allocations for new schemes are detailed.

Presenting her eighth budget speech, Sitharaman positioned agriculture as "the first engine of growth" and introduced Pradhan Mantri Dhan-Dhaanya Krishi Yojana targeting 100 low-productivity agri-districts.

The scheme, implemented with state governments, aims to benefit 1.7 crore farmers through enhanced productivity, crop diversification, and improved post-harvest infrastructure.

The government will undertake the Prime Minister Krishi Yojana in partnership with states through the convergence of existing schemes and specialized measures, said the FM.

The program will cover 100 districts with low agricultural productivity, said Sitharaman.

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The government plans to moderate crop intensity and below average credit parameters. "It aims to enhance agricultural productivity. So Adopt crop diversification and sustainable agricultural practises."

The government will also augment post harbour storage at the Pancha and block level, said FM.

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"For improved irrigation facilities and to facilitate the availability of both long-term and short-term credit, this program is expected to benefit 1.7 crore farmers. A comprehensive multi-sectoral approach will be implemented to build rural prosperity and resilience."

Kisan credit cards

Kisan Credit Cards facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. Under the modified interest subvention scheme, the loan limit for loans taken through the KCC will be increased from ₹3,000 to ₹5,000.

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Makhana Board in Bihar

Makhana Board in Bihar will be set up. "For this, there is a special opportunity for the people of Bihar. A Makhana Board will be established in the state to improve production, processing, value addition and marketing of Makhana. The people engaged in these activities will be organised into FPOs. The Board will provide hand holding and training support to Makhana farmers and will also work to ensure they receive the benefits all relevant government schemes," announced Sitharaman.

Goal is to create ample opportunities in rural areas

Sitharaman said, "The Rural Prosperity and Resilience Programme will be launched in partnership with the states to address underemployment in agriculture through skilling, investment, technology, and revitalizing the rural economy."

The goal is to create ample opportunities in rural areas, ensuring that migration becomes a choice rather than a necessity, she said. "The program will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families."

"Global and best domestic practices will be incorporated, and appropriate technical and financial assistance will be sought from multilateral development banks. In phase 1, 100 developing agri-districts will be covered."

Oilseed and pulses in focus:

In a major push for self-reliance, a six-year pulses mission received Rs 1,000 crore to boost tur, urad, and masoor production. Under this initiative, Nafed and NCCF will procure pulses for four years from registered farmers through formal agreements.

"Our government is implementing the National Mission for Edible Oilseeds to achieve self-sufficiency in edible oils. Our farmers have the capability to grow enough to meet our needs and more."

Our government will now launch a 6-year mission for 'Atmanirbharta' in pulses, with a special focus on tur and masoor, said FM. "Central agencies such as NAFED and NCCF will be prepared to procure these three pulses in quantities offered by farmers over the next four years, provided they register with these agencies and enter into agreements."

Other announcements:

The Budget allocated Rs 500 crore each for a comprehensive horticulture programme on vegetables/fruits and a five-year cotton mission promoting extra-long staple varieties.

Last year's recap:

The total allocation to agriculture in last year's budget was Rs 1.52 lakh crore.

FM Sitharaman had also announced plans to release 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops for cultivation by farmers.

These measures were aimed at helping solve the issues India has traditionally faced in terms of shortages in production of major foodgrain crops like pulses, wheat, rice, and oilseeds and become import dependent for some of them. The agri-processing industry has also been facing shortages of raw materials like cotton and maize because of declining or stagnant yields and a lack of introduction of new seeds.

India's farm sector continues to be mired in legacy problems. Even though a large percentage of the country's population is still dependent on it for livelihood, agriculture lacks efficiency and remains a low-income profession. Experts say there is a need to create farm employment opportunities and move towards commercialisation and diversification.

In India, agriculture's share in the economy has been declining over time. Currently, it is less than 15%. The high growth rate of the industry and services sectors has contributed majorly to this fall. However, agriculture's importance in India’s economy goes beyond mere numbers, because over 70% of the country's population depends on rural incomes and about 70% of poor people are found in rural areas, data shows.

As per latest data, the majority of India's farmers sustain themselves on marginal and small holdings -- of less than five acres each. Small and marginal farmers with less than two hectares of land account for 86% of the total cultivators in the country. This size of holdings is unviable for meaningful agri activities, which makes governmental/budgetary support and access to institutional credit all the more critical for them.