Union Budget 2025: Agricultural Sector Set to Receive a 15% Increment

The Indian government is poised to significantly increase its agricultural spending in the upcoming union budget, allocating approximately $20 billion, a 15% rise. This marks the largest increase in six years and reflects a concerted effort to boost rural incomes and combat rising food prices. The increased funds will be strategically directed towards developing high-yielding seed varieties, enhancing storage and supply chain infrastructure, and bolstering the production of key crops like pulses, oilseeds, vegetables, and dairy products. This move comes as India grapples with high food prices, prompting the government to implement measures such as export restrictions on certain farm products and duty-free imports for specific pulses.

Key Budget Highlights:

* The budget for agriculture and allied activities is likely to increase to 1.75 trillion rupees ($20.2 billion) from 1.52 trillion rupees in the current fiscal year. * Development of high-yielding seed varieties. * Enhancement of storage and supply chain infrastructure. * Boosting production of key crops like pulses, oilseeds, vegetables, and dairy products. * Increased research and development funding. * Increase in the limit for subsidized farm loans from 300,000 rupees to 500,000 rupees per farmer. * Expansion of crop insurance coverage. * Investment of $9 billion in the fisheries sector over the next five years. * Incentives totaling 109 billion rupees for food processing firms through 2027. * Target to boost pulse production to 30 million metric tons by 2030.

Independent farm policy analyst Devinder Sharma believes that while these measures are a step in the right direction, they may not adequately address deeper issues such as low productivity and stagnant farm incomes. He advocates for increased direct transfers to farmers and improved crop procurement mechanisms to stabilize incomes and ensure fair consumer prices.

This significant budget allocation underscores the government's recognition of the critical role of agriculture in the Indian economy and its commitment to ensuring food security and price stability for its citizens.