Budget 2025: FM announces scheme to benefit 1.7 crore farmers

Budget 2025-‘26 has revealed a slew of measures intended to strengthen rural and agri-economy including a new scheme—Prime Minister Dhan-Dhaanya Krishi Yojana—that aims to improve crop productivity and crop intensity in 100 low-productivity districts across India.

The overall budgetary allocation for the Department of Agriculture and Farmers Welfare has increased marginally to ₹1.27 lakh crore for 2025-26 (BE) as compared to ₹1.23 lakh crore 2024-25(BE).

Prime Minister Dhan-Dhaanya Krishi Yojana, to be implemented in partnership with states, is expected to help 1.7 crore farmers enhance agricultural productivity and adopt crop diversification and sustainable agriculture practices, Finance Minister Nirmala Sitharaman said in her Budget Speech. Augmenting post-harvest storage at the panchayat and block level, improving irrigation facilities, and facilitating availability of long-term and short-term credit to farmers are also part of the programme.

The Budget also talks of a multi-sectoral ‘Rural Prosperity and Resilience’ programme to be launched in partnership with states to address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy. “The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. Global and domestic best 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,” the minister said.

The government will also launch a six-year “Mission for Atmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor where central agencies (NAFED and NCCF) will procure the entire produce offered by farmers during the next four years.  A comprehensive programme for vegetables and fruits to promote its production, efficient supplies, processing, and remunerative prices for farmers are also being planned.

“We appreciate the government's initiative to make India the food basket of the world. The Dhan-Dhaanya Krishi Yojana for 1.7 crore farmers in 100 low-productivity districts is a monumental step towards rural prosperity. The Edible Oil Mission, enabling farmers to enter into procurement agreements with agencies like NAFED and NCCF, will provide price security, enhance domestic oilseed production, and enhance India's export strength,” R.G Agarwal, chairman Emeritus, Dhanuka Agritech Limited said.

The other announcements for the agriculture sector include a National Mission on High Yielding Seeds 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. An enabling framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands is another announcement in Budget 2025-26.

A five year ‘Mission for Cotton Productivity’ to facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties and Kisan Credit Cards (KCC) to facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers is another announcement. The Centre will also enhance the loan limit under the Modified Interest Subvention Scheme from ₹3 lakh to ₹5 lakh for loans taken through the KCC.

Balram Singh Yadav, managing director, Godrej Agrovet Limited said the Budget proposals showcase a comprehensive strategy to strengthen India's agricultural sector, positioning it as a key driver in our journey towards Viksit Bharat. “By addressing critical growth levers such as high-yielding, climate-resilient seeds, boosting cotton productivity, and achieving self-sufficiency in pulses, the budget lays a robust foundation for a resilient agri-economy. The enhanced loan limit under the Modified Interest Subvention Scheme—from ₹3 lakh to ₹5 lakh—for Kisan Credit Card loans will provide vital financial support to small fisheries and dairy farmers, empowering them to scale operations,” Yadav said.

Palat Vijayaraghavan, founder & CEO, Lawrencedale Agro Processing India (LEAF) said the government’s budgetary steps offer significant potential for advancing India’s agricultural sector but its success hinges on comprehensive implementation that aligns with the pressing needs of farmers, especially those in marginalised communities. “Ensuring equitable access to resources, technology, and financial support will be key to enabling all farmers to thrive in the face of climate change and evolving agricultural challenges. With the right strategy, these initiatives can provide a foundation for long-term, inclusive growth that not only strengthens the agricultural economy but also ensures greater food security for India’s growing population,” Vijayaraghavan said.