Union Budget 2025: What to expect for farmers and agriculture

30 Jan, 2025

This article will provide live updates of the Indian Budget 2025 to be presented on February 1, 2025, by Hon'ble Finance Minister Smt. Nirmala Sitharaman. Prior to that, we are providing some of the expectations from the Budget 2025 for the Indian farmers and farming sector. 

Finance Minister Smt Nirmala Sitharaman will announce the Union Budget for the FY 2024-25 on 1 February 2025. But before that, Agriculture Minister Shivraj Singh Chouhan had discussions with farmers and other agriculture stakeholders where they discussed several challenges of farming.

The Ministry of Agriculture and Farmers Welfare conveyed the details of these discussions to the Finance Ministry so that the problems occurring in the agriculture sector can be resolved and maximum benefit can be provided to the farmers. Hence, it is estimated that the Budget 2025 can bring a big gift for Indian farmers and the agriculture sector.

Prospects for Indian Farmers and Farming in Budget 2025

Agriculture has an important contribution to the economy of India. A large part of the country's population is dependent on agriculture. Therefore, many important steps are likely to be taken in the Agriculture Budget 2025, keeping in mind the interests of the farmers. A few of them will be:

1. Increase in Minimum Support Price:

The government can increase the Minimum Support Price (MSP) of major crops so that farmers get a fair price for their crops. The increase in MSP will also increase the income of farmers and make them financially strong to buy advanced agricultural equipment like tractors, rotavators, etc. 

2. Reduction in Interest Rates on Agricultural Loans:

The government can reduce the interest rates on agricultural loans so that low interest rate loans can be made available to farmers. Low interest rates will reduce the cost and increase the income of farmers. The government has already launched several schemes to reduce interest rates on agricultural loans.

3. Increase in the Limit of Kisan Credit Card:

The government gives agricultural loans for buying seeds, tractors, or other needs through banks using a Kisan Credit Card (KCC). The government can increase the limit of agricultural loans available on Kisan Credit Card from Rs 3 lakh to Rs 5 lakh in the upcoming budget. 

4. Promotion of Agriculture-Based Industries:

The government can give incentives to promote agriculture-based industries. It will increase the demand for agricultural products and increase the income of farmers. Currently, India exports agri products worth $50 billion. The government wants to increase it to $80 billion by 2030.

5. Relief to Farmers on GST:

Farmers have to pay taxes on products like fertilizers, pesticides, seeds, etc. In this budget, the government can provide relief from GST on seeds, pesticides and more, thus relieving farmers a lot. 

6. Focus on Agricultural Research and Development:

The government can also focus on agricultural research and development. It will lead to the development of new techniques and increase productivity.

7. Increasing the Installments of Kisan Samman Nidhi:

With the new budget, the government can increase the amount received in Kisan Samman Nidhi. Currently, under this scheme, Rs 6,000 is transferred to the accounts of all farmers through DBT. The Standing Committee of Parliament on Agriculture, Animal Husbandry and Food Processing had recommended in the Lok Sabha to increase it to 12,000. 

8. Strengthening Agricultural Insurance Scheme:

The government can strengthen agricultural insurance schemes so that farmers can be protected from losses caused by natural disasters. It will provide financial security to the farmers. It has been suggested that farmers with agricultural land up to 2 hectares should also get the facility of the Universal Crop Insurance Scheme.

9. Development of Basic Agricultural Infrastructure:

The government can also focus on the development of farming infrastructure such as storage houses etc. It will make transportation and storage of agricultural products easier, and farmers will get better prices for their crops.

Conclusion

The Government of India is considering increasing the investment in the agriculture sector by about $20 billion in the budget of February 2025. Its objective is to increase the income of farmers and control inflation. This investment will be used for the development of HYV seeds, improvement in storage and supply infrastructure, and an increase in the production of oil seeds, vegetables, and dairy products.

Many more important steps are likely to be taken in the Agriculture Budget 2025, keeping in mind the interests of farmers. These efforts will increase the income of farmers and make them financially strong. It will also strengthen the agricultural economy of the country.

Stay connected with TractorGyan for more information related to the Indian Budget 2025. And don’t forget to join us live on 1st February 2025 for all the updates related to the Union Budget 2025 and what it brings for the Indian farmers. Stay tuned!