Agriculture was in the spotlight in Union Finance Minister Nirmala Sitharaman’s much-awaited Budget speech on February 1, 2025, during which she announced at least nine new missions or programmes focused solely on the sector, while recognising farmers’ role in making the country the “food basket of the world.”
Sitharaman referred to agriculture as the “first engine” of development and began her speech by outlining the government’s priorities for the sector, which has long been the backbone of the rural economy. The announcements were seen as an acknowledgement of the sector’s inextricable link to the livelihoods of millions.
Indeed, agriculture has been one of the few sectors to demonstrate stable growth, playing a key role in driving India’s economic development. However, it has continued to struggle with issues related to farmer welfare and income improvement.
Nevertheless, the Union Ministry of Agriculture and Farmers’ Welfare saw an overall reduction of 2.5 per cent in its total allocation — from Rs 1.41 lakh crore (Rs 1,41,351.56 crore) to Rs 1.37 lakh crore (Rs 1,37,756.55 crore) in the revised estimates (RE) for 2024-25.
Sitharaman proposed nine programmes, which she stated were designed to spur agricultural growth and productivity:
‘Prime Minister Dhan-Dhaanya Krishi Yojana’: This will be implemented in partnership with states through the convergence of existing schemes in 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The programme is expected to benefit 17 million farmers. However, it is not immediately clear from the budget document how much funding will be allocated to this scheme.
‘Mission for Aatmanirbharta in pulses’: A six-year mission with an allocation of Rs 1,000 crore for the financial year 2025-26 with focus on toor (pigeon pea), urad (black gram), and masoor (red lentil). Under this scheme, central agencies such as NAFED (National Agricultural Cooperative Marketing Federation) and National Cooperative Consumers’ Federation will procure these pulses “as much as offered” over the next four years from farmers who register with these agencies and enter into agreements.
Comprehensive programme for vegetables and fruits: This will be launched in partnership with states to promote production, efficient supplies, processing, and remunerative prices for farmers. The mission has been allocated Rs 500 crore for 2025-26.
Mission for cotton productivity: A five-year mission with an allocation of Rs 500 crore for FY 2025-26, focusing on improving the productivity and sustainability of cotton farming while promoting extra-long staple cotton varieties.
National Mission on High-Yielding Seeds: This mission will target the commercial availability, development, and propagation of over 100 high-yielding, pest-resistant, and climate-resilient seed varieties released since July 2024. It has been allocated Rs 100 crore for FY 2025-26.
Makhana board in Bihar: A makhana board will be established in Bihar to improve the production, processing, value addition and marketing of makhana (foxnut). With an allocation of Rs 100 crore for FY 2025-26, the board will provide training and support to makhana farmers, who will be organised into farmer producer organisations (FPO).
‘Rural prosperity and resilience programme’: This initiative will be launched in partnership with states to address underemployment in agriculture through skilling, investment, and technology. It will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.
Fisheries: Sitharaman announced the government’s plan to introduce an enabling framework for the sustainable harnessing of fisheries from India’s Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands. In this regard, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) received a substantial budgetary increase of 64 per cent for 2025-26 compared to the revised estimates for 2024-25.
Urea plant in Assam: A plantwith annual capacity of 1.27 million tonnes will be set up at Namrup, Assam to further augment the supply of urea.