The Indian Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, is designed to support the agricultural sector and provide a robust framework for farmers’ welfare. Recognizing the centrality of agriculture to the Indian economy and the livelihood of millions of farmers, the budget introduces a wide range of initiatives aimed at improving agricultural productivity, enhancing farmers’ incomes, and addressing the sector’s most pressing challenges.
Agriculture is a cornerstone of India’s economic structure, employing over 50% of the workforce. Despite this, farmers continue to face challenges such as fluctuating crop prices, poor infrastructure, water scarcity, and unpredictable weather patterns. In response to these challenges, the government’s budget for 2025 includes several measures aimed at ensuring long-term sustainability, enhancing the resilience of the farming community, and empowering farmers through technology, finance, and infrastructure development.
Let’s take a closer look at the various benefits and schemes introduced in the Indian Budget 2025 to aid farmers.
1. Increased Agricultural Credit and Financing
Access to affordable and timely credit is one of the major obstacles faced by farmers, particularly smallholders. In the 2025 Budget, the government has committed to providing robust financial support to the agricultural sector, enabling farmers to improve their productivity and financial resilience.
- Agricultural Credit Target Raised: The government has increased the agricultural credit target to ₹20 lakh crore for the year 2025-26, a significant increase from previous years. This enhanced credit target will allow farmers across India, particularly small and marginal farmers, to access loans at lower interest rates. These loans will be available for crop production, infrastructure development, and purchasing agricultural equipment.
- Interest Subvention Scheme: To make credit more affordable, the government has allocated ₹5,000 crore for the interest subvention scheme, which will provide interest subsidies to farmers who take out loans for agricultural activities. This subsidy will ensure that farmers can access credit at lower interest rates, reducing their dependence on informal credit sources that often come with high-interest rates.
- Digital Credit Access: To address the issues of financial exclusion in rural areas, the government has introduced a new digital credit system. This system will provide farmers with access to instant loans through mobile applications, reducing the paperwork and time required to avail credit. The system will also be integrated with Aadhaar for identification and ensure that subsidies and loans are directly transferred to the farmers’ accounts.
2. Support for Crop Diversification and Sustainable Farming
The 2025 Budget also focuses on supporting crop diversification and promoting sustainable farming practices that can improve long-term productivity while reducing the environmental impact of agriculture.
- Crop Diversification Fund: A new 10,000 crore fund has been established to promote crop diversification. The fund will be used to provide financial incentives to farmers who switch from traditional crops like rice and wheat to more sustainable and profitable crops like pulses, oilseeds, and horticulture. The government aims to reduce the over-reliance on a few staple crops and ensure better income for farmers by diversifying their agricultural output.
- Promoting Organic Farming: To encourage sustainable agricultural practices, the government has allocated 3,500 crore for the promotion of organic farming. This will include subsidies for organic inputs like fertilizers and seeds, as well as training programs to help farmers transition to organic farming. The government also plans to increase the number of organic certification agencies, making it easier for farmers to certify their produce for organic markets.
- Micro Irrigation and Water Efficiency: To address water scarcity issues, the budget has introduced a 7,000 crore scheme for micro-irrigation. This scheme will provide farmers with financial assistance to adopt drip irrigation, sprinkler systems, and other water-efficient technologies. The aim is to optimize water usage and reduce wastage, especially in water-scarce regions.
- Sustainable Fertilizer Use: The government has committed to promoting sustainable fertilizer usage by introducing a 4,000 crore scheme aimed at reducing dependency on chemical fertilizers. This initiative will support the use of bio-fertilizers and organic alternatives, improving soil health and reducing environmental pollution caused by overuse of chemical fertilizers.
3. Enhancing Agricultural Infrastructure and Market Access
Developing rural infrastructure is crucial to improving agricultural productivity and enhancing farmers’ access to markets. The government’s budget for 2025 places a strong emphasis on building better infrastructure and linking farmers to national and global markets.
- National Agriculture Market (eNAM) Expansion: The government has allocated ₹3,000 crore for the expansion of the National Agriculture Market (eNAM), a digital platform that connects farmers with buyers across the country. This will enable farmers to sell their produce at better prices by eliminating middlemen, ensuring that they receive fair compensation for their hard work. The expansion will include the addition of new mandis and the integration of more commodities into the platform.
- Cold Storage and Warehousing Facilities: The budget also introduces a ₹6,000 crore fund for the development of cold storage and warehousing facilities. These facilities will help farmers store perishable crops like fruits, vegetables, and dairy products, reducing post-harvest losses and enabling them to sell their produce when prices are more favorable. This will also encourage farmers to produce high-value crops without the fear of wastage.
- Transportation Infrastructure: The government has allocated 15,000 crore to improve rural transportation infrastructure, including roads, bridges, and railways. The goal is to improve connectivity between rural areas and urban markets, ensuring that farmers can easily transport their produce to larger markets for sale. This will help reduce transportation costs and enhance the competitiveness of Indian agriculture in the global market.
4. Support for Small and Marginal Farmers
Small and marginal farmers, who often face the greatest challenges in terms of access to resources, are a key focus of the 2025 budget.
- Income Support Scheme (PM-KISAN): The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, which provides income support to small and marginal farmers, has been expanded in the 2025 budget. The government has increased the amount of direct cash transfers under the scheme from ₹6,000 per year to 10,000 per year. This increase will help alleviate the financial stress faced by small farmers, especially during periods of low crop prices or natural calamities.
- Farmers’ Pension Scheme: A new initiative called the Farmers’ Pension Scheme has been introduced, which will provide pension benefits to farmers above the age of 60. Under this scheme, farmers will contribute a small amount every year, and upon retirement, they will receive a monthly pension to ensure financial security in their old age. The government has allocated 2,000 crore for the implementation of this scheme.
- Kisan Credit Cards (KCC) for Dairy Farmers: The government has extended the Kisan Credit Card (KCC) scheme to dairy farmers, providing them with access to credit for purchasing livestock, fodder, and other necessary equipment. This move will help improve the livelihoods of dairy farmers and provide them with a reliable source of income.
5. Disaster Relief and Risk Mitigation
Natural disasters such as floods, droughts, and cyclones often devastate the agricultural sector, leading to crop failures and financial loss for farmers. The 2025 Budget includes several measures to mitigate these risks and provide timely relief to affected farmers.
- National Disaster Relief Fund (NDRF) for Farmers: The government has allocated 5,000 crore to the National Disaster Relief Fund (NDRF) to provide immediate financial relief to farmers in the event of crop loss due to natural calamities. This fund will be used to compensate farmers for their losses, provide financial support for replanting, and help them recover from disasters quickly.
- Crop Insurance Scheme: The Pradhan Mantri Fasal Bima Yojana (PMFBY) has been further strengthened with an additional 7,000 crore allocation for crop insurance coverage. This scheme provides insurance to farmers against crop failure due to natural disasters, pests, and diseases, ensuring that they receive compensation for their losses. The government has also expanded the coverage to include more crops, especially those grown in drought-prone areas.
- Climate Resilience Program: The government has launched a 10,000 crore climate resilience program aimed at helping farmers adapt to the challenges posed by climate change. This program will include funding for research on climate-resistant crop varieties, training programs for farmers on climate-smart farming techniques, and the establishment of weather stations to provide accurate forecasting.
6. Promotion of Farmer Producer Organizations (FPOs)
The budget has recognized the importance of Farmer Producer Organizations (FPOs) in increasing farmers’ bargaining power, improving access to markets, and enhancing collective farming practices.
- FPO Development Fund: A ₹5,000 crore fund has been set aside for the development of FPOs, which will help farmers come together to share resources, access credit, and negotiate better prices for their produce. The government aims to form 10,000 new FPOs in the next five years, thereby providing farmers with a platform to voice their concerns and secure better deals in the market.
Conclusion
The Indian Budget 2025 reflects a comprehensive approach to addressing the challenges faced by farmers and the agricultural sector. The government has introduced a range of initiatives to increase credit access, promote sustainable farming practices, enhance infrastructure, and provide timely relief during natural disasters. By focusing on small and marginal farmers, the government aims to improve the financial security and livelihoods of those who are most vulnerable in the agricultural sector.
The Budget’s focus on agricultural credit, crop diversification, market access, and farmer welfare is expected to improve the overall productivity of the sector and support the vision of doubling farmers’ incomes in the coming years. By addressing the specific needs of farmers and promoting innovation, the Indian government is taking significant steps towards ensuring the long-term sustainability of agriculture and improving the lives of millions of farmers across the country.
