Union Budget 2025 Receives Strong Backing from Agro Industry Leaders

The Union Budget 2025 has been widely lauded by key stakeholders in the agricultural and allied sectors for its comprehensive focus on enhancing productivity, sustainability, and rural prosperity.

Dr. R.G. Agarwal, Chairman Emeritus of Dhanuka Agritech Ltd., praised the government’s initiative to position India as the food grain hub of the world. He highlighted the Dhan Dhanya Krishi Yojana, aimed at benefiting 1.7 crore farmers across 100 low-productivity districts, as a major step towards rural upliftment. Dr. Agarwal also commended the Edible Oil Mission, which will allow farmers to enter procurement agreements with NAFED and NCCF, ensuring price security and boosting domestic oilseed production. Additionally, he welcomed the government’s focus on vegetable production expansion to meet increasing consumption levels.

“This budget is a crucial step in strengthening Make in India in the agricultural sector, fostering a sense of empowerment among farmers,” said Dr. Agarwal. He particularly appreciated initiatives such as the National Mission on High-Yielding Seeds, post-harvest storage facilities, increase in KCC loan limits from ₹3 lakh to ₹5 lakh for 7.7 crore farmers, and the establishment of a Makhana Board in Bihar. He also noted that the six-year mission for self-reliance in pulses, which includes procurement agreements for tur, urad, and masoor, underscores the government’s commitment to strengthening the agricultural sector.

The Indian Sugar and Bio Energy Manufacturer Association (ISMA) also welcomed the budget, stating that the measures introduced will significantly benefit the agricultural sector. Deepak Ballani, Director General of ISMA, emphasized the importance of increasing financial support through Kisan Credit Cards (KCC) and raising the loan cap, which will boost agricultural activities. He also highlighted the government’s commitment to irrigation projects, which will help reduce inefficiencies and enhance economic growth in agriculture, particularly in sugarcane farming. ISMA reaffirmed its support for government initiatives such as the Dhan Dhanya Krishi Yojana, which aims to improve productivity in low-performing districts and ensure fair benefits for all stakeholders in the sector.

Dr. Suhas Buddhe, Adviser, Soluble Fertilizer Industry Association (SFIA), appreciated the budget’s focus on strengthening MSMEs and the agri-input sector, reinforcing a self-reliant agricultural ecosystem. He praised the expansion of credit guarantees for MSMEs and the continued emphasis on Make in India, which he believes will boost domestic manufacturing and reduce import dependency. Additionally, the budget’s emphasis on millet production, sustainable farming, and technology-driven advancements like drones aligns well with India’s long-term agricultural strategy.

However, Dr. Buddhe pointed out key concerns, particularly the lack of import substitution measures for advanced agricultural inputs and the unresolved issue of GST refund disparities for MSME agri-input manufacturers. He noted that the 13% GST differential continues to strain working capital, compelling manufacturers to rely on loans to meet tax obligations. He called for a comprehensive GST refund mechanism to ensure competitiveness against Chinese imports. Furthermore, he stressed the need for specific budgetary provisions for farm schools, which could help train marginal farmers in modern agricultural techniques. The absence of dedicated funding for residue-free and organic farming was also highlighted as a missed opportunity.

Mr. Ankur Aggarwal, Chairman of CropLife India and Managing Director of Crystal Crop Protection Ltd., emphasized that the budget’s sharp focus on enhancing productivity would drive significant growth in the agricultural sector. He praised the government’s vision to prevent rural migration through initiatives prioritizing women and youth, which will encourage the adoption of modern technologies such as drones and precision agriculture.

“It is heartening to witness the inclusion of productivity and resilience in agriculture as one of the key priorities of Union Budget 2025,” said Mr. Aggarwal. He reaffirmed CropLife India’s commitment to partnering with both Central and State Governments to improve agricultural productivity in 100 low-productivity districts. He expressed confidence that targeted interventions and innovative solutions would enhance sustainability and farmer support in these regions.

With strong endorsements from industry leaders and key agricultural organizations, Union Budget 2025 is being viewed as a transformative step towards self-reliance, sustainability, and inclusive growth in Indian agriculture.