In the Annual Budget, the Finance Minister allocated Rs.1.37 lakh crore to the Ministry of Agriculture and Farmers’ Welfare, compared to Rs.1.32 lakh crore in the previous budget. While this represents a nominal increase of 4%, in real terms, the allocation has decreased.
Among the key announcements are the Prime Minister Dhan-Dhaanya Krishi Yojna (PMD-DKY), a program focused on vegetables and fruits, the establishment of a Makhana Board in Bihar, and a national mission on high-yielding seeds.
PMD-DKY and Agricultural Initiatives
The PMD-DKY will be implemented in partnership with states and will align with the existing Aspirational District Programme. It aims to cover 100 districts characterized by low productivity, moderate crop intensity, and below-average credit availability. According to the Finance Minister, the scheme seeks to boost agricultural productivity, encourage crop diversification and sustainable farming, enhance post-harvest storage, improve irrigation facilities, and expand credit access. It is expected to benefit 1.7 crore farmers. However, no specific budget allocation has been announced for this initiative.
Additionally, a program has been introduced to address underemployment in agriculture through skill development, investment, and technology-driven interventions aimed at revitalizing rural economies. If successful, this could help curb migration from rural areas, as per the Finance Minister.
Key Budget Allocations
Significant allocations in the budget include:
lRs.1,000 crore for the mission on pulses
Given India’s heavy dependence on imported edible oils and pulses, the Finance Minister announced a six-year mission to achieve self-sufficiency in pulses such as tur (arhar), urad, and masoor.
New Agricultural Missions
Two additional missions have been introduced. The National Mission on High-Yielding Seeds will focus on research and development of high-yield, pest-resistant, and climate-resilient seeds, with over 100 new seed varieties expected to be developed. Several new seed varieties have already been released since 2024 and are commercially available.
India has a comparative advantage in cotton production and textile manufacturing. To enhance cotton productivity, a five-year integrated mission has been launched, promoting high-yield cotton farming and extra-long staple cotton varieties. Advanced scientific techniques will be made available to farmers to improve sustainability and productivity.
The Department of Fisheries and Animal Husbandry will receive an additional `1,500 crore compared to the revised estimates. To enhance global competitiveness, the Finance Minister proposed reducing the basic customs duty (BCD) on frozen fish paste (used in manufacturing and exports) from 30% to 5%, and on fish hydrolysate (used in fish and shrimp feeds) from 15% to 5%.
Agriculture Growth as per Economic Survey 2025
According to Economic Survey 2025, the agriculture sector grew at an average rate of 5% annually between FY17 and FY23. In the second quarter of FY25, it recorded 3.5% growth, recovering from the previous four quarters where growth ranged between 0.4% and 2%.
The Survey attributes this improvement to assured remu-nerative prices, better access to institutional credit, crop diversification, support for sustainable practices, and increased productivity.
However, some analysts argue that rural incomes have stagnated due to stagnant real wages over several years, and rising inflation has worsened the situation. They emphasize the need for government intervention to address these challenges.
Concerns over Budget Allocation
Despite the Finance Minister’s assertion that agriculture is the “engine of growth,” the allocation for the Department of Agriculture and Farmers’ Welfare has been reduced by Rs.3,905 crore compared to the revised estimate for 2024-25
(as reported by The Hindu on February 2). The primary reduction is in the allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY), which has been cut by ` 3,621 crore. Additionally, a reduction in the budget for the Fertilizer Department may impact fertilizer subsidies.
The Samyukt Kisan Morcha criticized the budget, calling it an attack on farmers and workers. The organization statedthat the budget ignored demands for legalizing Minimum Support Prices (MSP) as per the M.S. Swaminathan formula and failed to introduce a comprehensive farm loan waiver scheme.
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