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Budget 2025: FM Sitharaman Announces Policies To Help India's 1.7 Crore Farmers

Modified On Feb 04, 2025 07:19 PMBy Shristi Nagar

Through the Prime Minister Krishi Yojana, which aims to improve agricultural development, Finance Minister Nirmala Sitharaman announced measures to benefit 1.75 crore farmers. Read here to know more.

Budget

Key Highlights

  • ₹5 Lakh Kisan Credit Card Loan Limit: Increased from ₹3 lakh, benefiting 7.7 crore farmers, fishers & dairy farmers.

  • ₹10,000 Crore National Mission for Edible Oilseeds to boost self-sufficiency in oilseed production.

  • PM Dhan Dhaanya Krishi Yojana: Targets 100 low-productivity districts with better storage, irrigation & credit access.

On Saturday, Finance Minister Nirmala Sitharaman announced six new agricultural schemes and raised the subsidised Kisan Credit Card loan limit from Rs 3 lakh to Rs 5 lakh, which will benefit 7.7 crore farmers, fishermen, and dairy farmers. This is a major policy change intended to increase agri-productivity and rural prosperity.

The statements were made concurrently with the government's proposal to reduce the agriculture ministry's budget allocation by 2.75 percent, to Rs 1.37 lakh crore for the upcoming fiscal year.

Increased funding for related industries, including as food processing (up 56 percent to Rs 4,364 crore) and fisheries, animal husbandry, and dairying (up 37 percent to Rs 7,544 crore), more than made up for this cut.

The First Development Engine Was Agriculture.

One of the nation's four development engines, according to the Union Budget 2025, is the agricultural industry. (Image source: Canva)

The government, in collaboration with the states, launched the "Prime Minister Dhan Dhaanya Krishi Yojana" due to the Aspirational Districts Program's success. This program, which many have called a transformative effort to improve the agriculture sector, will reach 100 districts that suffer from below-average credit parameters, moderate crop intensity, and low production. 

In addition to increasing post-harvest storage, enhancing irrigation systems, and making long-term and short-term finance more accessible, its goals include assisting farmers in implementing crop diversity and sustainable farming methods. An estimated 1.7 crore families will be impacted by this initiative. 

Multi-Sectoral Program For Rural Resilience And Prosperity

This initiative, which will be started in collaboration with the states, will use technology, investment, skill development, and boosting the rural economy to combat underemployment in agriculture. The goal is to reduce migration rates by creating more possibilities in rural areas. The program will target marginal and small farmers, landless families, young farmers, and rural women.

Development Banks' Financial And Technical Support

In addition to the technical and financial support requested from multilateral development banks, development banks will continue to be tapped with both domestic and international best practices. One hundred emerging agri-districts will be covered in the first phase. 

The Goal Of Cotton Productivity

Higher productivity and sustainable cotton cultivation will be made possible via a five-year cotton productivity mission. Farmers will also receive support in science and technology. Farmers stand to gain from higher incomes in line with an integrated 5F vision for the textile industry.  

Credit Cards Issued By Kisan (KCC)

For 7.7 crore farmers, fishers, and dairy farmers, these cards will make short-term borrowing easier. For loans obtained through the KCC, the Modified Interest Subvention Scheme would be increased from Rs 3 lakh to Rs 5 lakh.

Independence In The Production Of Oilseeds

At the moment, about half of India's annual edible oil needs are imported. The government would be implementing the National Mission for Edible Oilseed, investing over Rs 10,000 crore to boost oilseed production and help India become more self-sufficient. 

Atmanirbharta's (self-reliance) Mission In Pulses

Pulses like Tur, Urad, and Masoor will be the main focus of this six-year endeavour. These pulses will be purchased from farmers who register with organisations such as NAFED and NCCF.

In Bihar, a Makhana board will be established. The board will assist in enhancing makhana (foxnut) production, processing, value addition, and marketing. Participants in these activities will be grouped into farmer-producer organisations, or FPOs. Makhana farmers will receive assistance and training from the board.

High-Yielding Seed Mission

Strengthening the research environment, targeted development, pest resistance, climate resilience, and commercial availability of more than 100 seed varieties published starting in July 2024 are the goals of a national mission on high-yielding seeds. 

Facilitating The Sustainable Utilisation Of Fisheries 

India is the world's second-largest producer of fish and aquaculture. The government will develop an enabling framework for the sustainable exploitation of fisheries to further explore this potential, with a particular emphasis on the islands of Andaman & Nicobar and Lakshadweep. 

Reforms In India Post

India Post will become a major public logistics company that serves MSMEs, women, self-help groups, and new business owners. To stimulate the rural economy, the 1.5 lakh rural post offices will be moved. 

No Increase In MGNREGA

The Pradhan Mantri Awas Yojana holds the largest share of the Union Rural Development Ministry's budget, which has been boosted by over Rs 14000 crore. But there was no boost for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The largest portion of the rural development department's overall funding goes into this program, which helped safeguard the rural economy during the COVID-19 lockdown. 

A Bright Future For The Rural Economy?

Given the improved returns from rabi harvests, high commodity prices, and favourable rainfall circumstances, rural demand is anticipated to be strong during this fiscal year. A positive outlook for the agricultural sector may affect the rural economy as a whole, as farming contributes significantly to household income in rural areas. 

Rural consumption may benefit more from higher agricultural income, which is partly due to the Union Budget 2025–2026's provisions and a lower rate of food inflation. 

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