Agriculture Budget 2025-26: Major Boost for Farmers with New Schemes & Investments

1. Introduction

The Agriculture Budget 2025-26 brings big relief for farmers by increasing funding for subsidies, loan waivers, and modern farming techniques. With climate change and rising input costs, the Union Budget for Farmers 2025 focuses on sustainable agriculture, irrigation, and financial support through PM-KISAN Yojana.

The Indian government has increased the total agriculture budget by 11% compared to last year, which will help in strengthening rural infrastructure, modernizing farming techniques, and ensuring better price realization for crops. The Agriculture Budget 2025-26 has allocated ₹1,37,756 crore to the Ministry of Agriculture and Farmers Welfare, accounting for approximately 2.72% of the total government expenditure.

This allocation reflects a 2.9% decrease compared to the previous year’s revised estimate of ₹1.31 lakh crore.

2. Union Budget for Farmers 2025 – Key Highlights

Category	Budget Allocation (₹ Crore)	Impact on Farmers
Total Agriculture Budget	1,37,757	11% increase from last year
PM-KISAN Direct Benefit Transfer	72,000	More financial aid for small farmers
Fertilizer & Seed Subsidy	40,000	Lower cost of production
Irrigation & Water Management	10,000	Better irrigation facilities
Digital Agriculture & AI	2,000	Smart farming & precision agriculture
Post-Harvest Infrastructure	12,000	Cold storage & better crop prices

3. Major Announcements in Union Agriculture Budget 2025

A. Prime Minister Dhan-Dhaanya Krishi Yojana

Targeting 100 districts with low productivity, benefiting 1.7 crore farmers, Key Objectives:

• Boost crop productivity
• Encourage sustainable farming practices
• Enhance post-harvest infrastructure
• Improve market linkages

B. Mission for Aatmanirbharta in Pulses

Targets: Decrease dependency on pulse imports Invest in climate-resilient, high-yield pulse varieties NAFED and NCCF will purchase pulses from farmers Focus Crops: Tur, Urad, and Masoor

C. National Mission on High-Yielding Seeds

• Develop 100+ high-yield seed varieties
• Focus on climate resilience and pest resistance
• Budget Allocation: ₹ 2,500 crore

D. Five-Year Mission for Cotton Productivity

• Improve cotton yield and quality
• Develop Extra-Long Staple Cotton varieties
• Enhance scientific farming techniques
• ₹3,000 crore was allocated for boosting cotton productivity through better seeds and research

E. Establishment of Makhana Board in Bihar

• Strengthen Makhana (Fox Nut) production & processing
• Support Farmer Producer Organizations (FPOs)
• Promote the export potential of Indian Makhana
• ₹1,200 crore allocated for Makhana (Fox Nut) farmers,

4. Government Schemes for Farmers in Budget 2025

PM-KISAN Yojana 2025 Fund Allocation

✅ ₹ 72,000 crore allocated for PM-KISAN Samman Nidhi Yojana
✅ Direct Benefit Transfer (DBT) of ₹ 6,000 per year to small farmers
✅ Over 11 crore farmer’s benefit

Fertilizer & Seed Subsidy Budget 2025

✅ ₹ 40,000 crore allocated for fertilizer subsidy
✅ Special focus on organic & bio-fertilizers
✅ High-yielding variety (HYV) seed distribution

New Agriculture Loan & Crop Insurance Schemes

Agricultural credit has been increased to ₹22 lakh crore to provide easier access to loans for farmers. The Pradhan Mantri Fasal Bima Yojana (PMFBY) receives additional funding to protect farmers against crop loss due to natural disasters.

✅ Interest-free farm loans up to ₹ 3 lakh for small farmers
✅ ₹ 5,000 crore for crop insurance under PM Fasal Bima Yojana
✅ 30% increase in insurance claims for the drought-prone area

5. Comparison with Previous Agriculture Budgets

Total Agriculture Allocation (₹ Cr)	PM-KISAN Fund (₹ Cr)	Fertilizer Subsidy (₹ Cr)	Major Reforms
1,32,513	60,000	1,05,222	Digital agriculture push, organic farming incentives (2022-23)
1,41,032	65,000	1,07,000	Expansion of irrigation projects, AI in farming (2023-24)
1,50,250	70,000	1,10,500	Climate-resilient crops, smart farm mechanization (2024-25)
1,62,000	75,000	1,15,000	Cotton productivity mission, Makhana Board (2025-26)

Compared to the 2024 budget, the 2025 agriculture budget has seen an 11% increase, with more focus on sustainable farming, digital agriculture, and irrigation projects. The PM-KISAN fund allocation remains the same, but fertilizer and irrigation subsidies have increased. The budget has steadily increased over the years to support farmers with better financial aid and subsidies.

6. How Agriculture Budget 2025 Benefits Farmers

✅ Key Benefits for Small Farmers

• Lower input costs with fertilizer and seed subsidies
• Easy loan access with zero-interest farm credit
• Better crop insurance to reduce financial risks
• Higher MSP (Minimum Support Price) for key crops

✅ Higher subsidies reduce farming costs
✅ More cold storage & irrigation facilities improve yields
✅ AI-based smart farming increases efficiency
✅ Loan & insurance support ensures financial stability

7. Digital Agriculture & AI in Farming

The budget has allocated ₹2,000 crore for digital agriculture, focusing on:
✅ AI-based weather predictions
✅ Drones for crop monitoring & spraying
✅ E-NAM market expansion for better price discovery

8. Future Growth of the Indian Agriculture Sector

The 2025-26 budget paves the way for technology-driven agriculture, higher exports, and better productivity. With the right policies in place, India is set to become a global leader in agribusiness. With the new budget allocations, experts predict:
✅ 10% increase in farm mechanization
✅ Boost in organic farming & exports
✅ More climate-resilient farming practices

9. Market Reforms and Export Promotion

The 2025-26 budget includes a ₹7,500 crore allocation for agricultural marketing reforms, focusing on improving agricultural produce market committees (APMCs), e-NAM expansion, and direct farmer-to-consumer sales.

Export Boost for Agricultural Products

The government aims to increase India’s agricultural exports to $100 billion by 2030, providing subsidies for quality improvements, modern processing units, and branding initiatives for key products like spices, tea, rice, and organic foods. Trade agreements and global market access for Indian farmers will be enhanced through bilateral discussions and export incentives.

10. Conclusion

The Agriculture Budget 2025-26 focuses on boosting farmer income, improving productivity, and integrating advanced technology in agriculture. With a significant allocation of ₹1,62,000 crore, the budget supports PM-KISAN, fertilizer subsidies, crop insurance, and smart farming initiatives. Programs like the Cotton Productivity Mission and Makhana Board aim to enhance crop yield and rural livelihoods. The emphasis on AI-driven farming, sustainability, and infrastructure will modernize Indian agriculture, ensuring long-term growth. This budget is a positive step toward a resilient and profitable farming sector, benefiting millions of farmers across the country.

₹1,37,757 crore: This amount is allocated particularly for the Ministry of Agriculture and Farmers’ Welfare for the fiscal year 2025-26. It represents a 2.5% decrease compared to the revised estimate of ₹1,41,352 crore for 2024-25. (source=PRS India)

₹1,62,000 crore: This amount is the combined allocation for agriculture and allied sectors, including ministries such as Fisheries, Animal Husbandry and Dairying, and Food Processing Industries. When these allied sectors combined the total allocation reaches approximately ₹1,62,000 crore.

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