In a decisive move to bolster the country’s agricultural sector and invigorate rural development, Finance Minister Nirmala Sitharaman introduced a series of landmark measures in her eighth budget speech on Saturday. The announcement, which includes six new agricultural schemes and a significant increase in the subsidised Kisan Credit Card loan limit, is set to benefit approximately 7.7 crore farmers, fishermen, and dairy operators nationwide.
Enhanced Financial Support for Farmers
A standout feature of the new policy framework is the raise in the Kisan Credit Card limit from Rs 3 lakh to Rs 5 lakh. This measure is designed to ease access to credit, thereby enabling farmers to invest more confidently in productivity-enhancing inputs. Alongside this, several flagship schemes were introduced to address long-standing issues related to low productivity, crop diversification, and post-harvest infrastructure. Among these, the Pradhan Mantri Dhan-Dhaanya Krishi Yojana stands out, targeting 100 low-productivity districts with the aim of uplifting 1.7 crore farmers through state-level collaboration.
Targeted Investments in Allied Sectors
Despite a 2.75 per cent cut in the overall allocation for the agriculture ministry—set at Rs 1.37 lakh crore—the government has recalibrated its spending by significantly enhancing funds for allied sectors. Fisheries, animal husbandry, and dairying have seen a robust 37 per cent increase, with allocations rising to Rs 7,544 crore, while food processing enjoys a 56 per cent boost to Rs 4,364 crore. These strategic investments are expected to strengthen the agricultural supply chain and enhance value addition across multiple domains.
Sector-Specific Initiatives
In a concentrated effort to promote self-reliance, the government earmarked Rs 1,000 crore for a six-year pulses mission aimed at boosting the production of tur, urad, and masoor. Under this mission, bodies such as Nafed and NCCF will secure pulses production over a four-year period through formal procurement agreements with registered farmers.
Further, the budget introduces targeted programmes across a range of agricultural sub-sectors. A comprehensive horticulture programme, with a Rs 500 crore allocation, will focus on fruits and vegetables, while a five-year cotton mission has been set aside an equal amount to promote extra-long staple varieties. Other notable initiatives include a dedicated Rs 100 crore fund for a new Makhana Board in Bihar and a research ecosystem mission to develop climate-resilient seeds.
Revamping the Seafood and Fisheries Sector
Acknowledging India’s prominent position as the world’s second-largest producer of fish and a major seafood exporter, the budget outlines a sustainable fishing framework for the Indian Exclusive Economic Zone. Special emphasis is placed on safeguarding the fisheries in sensitive regions such as the Andaman & Nicobar and Lakshadweep Islands. Additionally, to bolster the country’s competitiveness in global seafood markets, the government has announced a reduction in basic custom duty—from 30 per cent to 5 per cent on Frozen Fish Paste (Surimi) and from 15 per cent to 5 per cent on fish hydrolysate, which is instrumental in manufacturing fish and shrimp feeds.
Boost to Key Agricultural Schemes
Several key schemes have received significant fiscal boosts in the new budget. The Rashtriya Krishi Vikas Yojana’s allocation has increased by over 41 per cent to Rs 8,500 crore, while the National Mission for Natural Farming sees its funding multiply sixfold, reaching Rs 616.01 crore. Other programmes such as the Krishionnati Yojana and the Namo Drone Didi scheme have also witnessed substantial increases, the latter’s funds doubling to Rs 676.85 crore. Further, the Pradhan Mantri Matsya Sampada Yojana has received a 64.33 per cent uplift to Rs 2,465 crore, and animal husbandry and dairying initiatives have doubled their allocation to Rs 1,050 crore. Micro food processing enterprises under the PM-FME scheme have also benefitted from a 67 per cent increase, with funds raised to Rs 2,000 crore.
A Vision for a Self-Reliant India
Agriculture Minister Shivraj Singh Chouhan praised the budget as “visionary,” remarking that it carries “the fragrance of faith, the yearning for development and the desire to build a developed India.” He highlighted that the revamped policies and increased investments underscore the government’s commitment to ensuring that agriculture and farmers’ welfare remain at the forefront of the national development agenda.
In addition to the agriculture-centric reforms, the budget unveiled plans for a new urea plant in Namrup, Assam, with a proposed annual capacity of 12.7 lakh tonnes. There are also plans to strengthen support for the cooperative sector through enhanced backing for the National Cooperative Development Corporation (NCDC).
As India steps into the new fiscal year with a transformative blueprint for its agricultural and allied sectors, the government’s multifaceted approach appears poised to generate lasting benefits for rural communities and the broader economy alike.
