Top 10 budget highlights for agriculture: ₹5 Lakh KCC Limit, Dhan-Dhanya Krishi Yojana

While presenting the General Budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman announced budget measures in 10 broad areas, keeping in mind GYAN—i.e., the poor, youth, farmers, and women. Special priority has been given to the development of agriculture and rural prosperity. The Finance Minister made several announcements, terming agriculture the first engine of India's development journey.

The Pradhan Mantri Dhan-Dhanya Krishi Yojana will be launched in partnership with states. Through the convergence of existing schemes and specialized measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. It aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices, augment post-harvest storage at the panchayat and block level, improve irrigation facilities, and facilitate the availability of long-term and short-term credit. This program is expected to benefit 1.7 crore farmers. 

The Finance Minister announced an increase in the short loan limit available through the Kisan Credit Card (KCC) from ₹3 lakh to ₹5 lakh. This is a significant budget announcement for farmers. Approximately 7.7 crore farmers, fishermen, and dairy farmers covered under KCC will benefit from this expansion.

A comprehensive multi-sectoral Rural Prosperity and Resilience programme will be launched in partnership with states. This will address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. In Phase-1, 100 developing agri-districts will be covered. 

The Finance Minister also emphasized achieving self-sufficiency in edible oils and pulses. The government will launch a six-year Mission for Aatmanirbharta in Pulses, focusing on tur, urad, and lentils. Central agencies, including NAFED and NCCF, will procure a maximum of three pulses from farmers over the next four years.

A Comprehensive Programme for Vegetables & Fruits has also been announced in the budget. This initiative, implemented in partnership with states, aims to enhance the production, supply, and processing of vegetables and fruits while ensuring remunerative prices for farmers. The participation of farmer-producer organizations (FPOs) and cooperatives will be encouraged.

Announcing the Mission for Cotton Productivity, the Finance Minister stated that this five-year mission will promote cotton productivity and the cultivation of long-staple varieties. The program aims to increase farmers’ income and ensure a steady supply of high-quality cotton for the traditional textile sector.

The National Mission on High Yielding Seeds will be implemented to provide farmers with quality seeds, strengthening the agricultural research ecosystem. More than 100 seed varieties released since July 2024 will be made commercially available through this program.

A Makhana Board will be established in Bihar to enhance the production, processing, and marketing of makhana. This board will offer guidance and training to makhana farmers and facilitate access to government schemes.

To augment urea supply government will set up a plant in Namrup, Assam, with an annual production capacity of 12.7 lakh metric tonnes. Additionally, restarting production at three idle urea plants in the eastern region will help increase the domestic supply of urea.

India Post with 1.5 lakh rural post offices, complemented by the India Post Payment Bank and a vast network of 2.4 lakh Dak Sevaks, will be repositioned to act as a catalyst for the rural economy.