Tamil Nadu Unveils ₹45,661-Crore Agriculture Budget, Focusing on Paddy, Sugarcane and New Initiatives

The Tamil Nadu government has presented its fifth exclusive Agriculture Budget, increasing the total allocation for agriculture and allied sectors by 8% for the financial year 2025-26. The budget has risen to ₹45,661 crore from ₹42,282 crore in the previous year, emphasising farmers' income, crop diversification, organic farming, mechanisation, and new initiatives.

State Agriculture Minister M.R.K. Panneerselvam announced a ₹102 crore special package to increase the paddy area and food grain production in 29 non-Cauvery Delta districts. The package includes subsidies for machine planting and quality seeds. A similar ₹58 crore package has been allocated for Delta districts to enhance food grain production during the Kuruvai season. These measures aim to boost rice production beyond traditional areas.

International Exposure for Farmers
To help farmers adopt the latest technologies, 100 progressive farmers will be taken on an exposure visit to Japan, China, and Vietnam. The government has earmarked ₹2 crore for this initiative.

Incentives for Sugarcane Farmers
The government has announced a special incentive of ₹349 per ton over the central government’s Fair and Remunerative Price (FRP), bringing the total cane price to ₹3,500 per MT. With an allocation of ₹297 crore, this initiative is expected to boost production and benefit 1.3 lakh sugarcane farmers.

₹215 Crore for Agricultural Mechanization
To modernize farming, the government plans to establish 130 custom hiring centers with a ₹10.5 crore subsidy. The Agricultural Mechanization scheme, with an outlay of ₹215.80 crore, will benefit 17,000 farmers. Subsidies for small paddy transplanters and power weeders have been increased to ₹1.7 lakh and ₹85,000, respectively.

1,000 Chief Minister’s Farmers Service Centres
To enhance agricultural advisory services, the state will establish 1,000 Chief Minister’s Farmers Service Centres, each costing ₹10-20 lakh, with a 30% subsidy amounting to ₹3-6 lakh per center. A total of ₹42 crore has been allocated for this initiative, providing farmers with access to seeds, fertilizers, expert guidance, and modern agricultural techniques.

Tamil Nadu Agroforestry Policy
The government will introduce the Tamil Nadu Agroforestry Policy to promote the cultivation of commercially valuable trees such as sandalwood, red sanders, mahogany, and rosewood. The policy aims to simplify procedures for registration, felling, transportation, and marketing of timber while enhancing environmental sustainability.

Support for Hill Farmers
The Malaivazh Uzhavar Munnetra Thittam scheme for hill farmers will be implemented with an allocation of ₹22.80 crore, benefiting 63,000 farmers across 20 districts. The scheme covers millet cultivation, input distribution, vegetable expansion, farm mechanization, value addition, and micro-irrigation. Farmers will also receive Kisan Credit Cards.

Oilseed & Millet Missions

• The Tamil Nadu Oilseed Mission, with a budget of ₹108.06 crore, targets 90,000 farmers growing groundnuts, sesame, and sunflower.
• The Tamil Nadu Millet Mission will promote millet cultivation and processing with an allocation of ₹55.44 crore.
• The Nutrition Farming Mission will receive ₹125 crore to boost the production of vegetables, fruits, pulses, and minor millets, enhancing food security and farmers’ income.

Crop Insurance
The government will implement the Crop Insurance Scheme with an allocation of ₹841 crore as the state’s share of the premium subsidy, covering 35 lakh acres and protecting farmers from income loss due to natural calamities.

Maize Production Enhancement
Maize production will be strengthened with ₹40.27 crore allocated to cover 1.87 lakh acres, benefiting 79,000 farmers.

Natural Farming
A two-year National Mission on Natural Farming will be implemented across 37 districts with an outlay of ₹12 crore, benefiting 7,500 farmers. The program will establish natural farming clusters.

Tamil Nadu Cashew Board
A Tamil Nadu Cashew Board will be established at a cost of ₹10 crore to support cashew-based industries and the welfare of workers in the sector.

Increased Subsidies for SC/ST Farmers
To reduce financial burdens, subsidies for small and marginal farmers from Scheduled Caste (SC) and Scheduled Tribe (ST) communities will be increased to 60-70%, funded by state resources. ₹21 crore has been allocated for high-value schemes, including the Integrated Farming System, polyhouses, solar dryers, and farm equipment.

Agricultural Infrastructure Development
The Kalaignarin All Village Integrated Agricultural Development Programme will continue in 2025-26 with an outlay of ₹269.50 crore, benefiting 2,338 village panchayats.

Seed Processing Units
Seven State Seed Processing Units will be established at an outlay of ₹15.05 crore to ensure the availability of high-quality certified seeds. Around 7,000 metric tonnes of breeder, foundation, and certified seeds will be procured and distributed at subsidized rates. The Tamil Nadu State Seed Development Agency will distribute 39,500 metric tonnes of high-yielding seeds, with ₹250 crore allocated for the initiative.

Alternative Crop Cultivation Scheme
To combat climate change and improve soil fertility, an alternative crop cultivation scheme will promote millets, pulses, and oilseeds, which require less water than paddy. The scheme will cover one lakh acres with an outlay of ₹12.50 crore, benefiting one lakh farmers.

Other Highlights

• Mannuyir Kaathu Mannuyir Kaapom Scheme: ₹142 crore for soil conservation and health initiatives.
• Solar Pumpsets for Farmers: ₹24 crore to install solar pumps for 1,000 farmers, with up to 70% subsidy.
• Mini Dairy Scheme: Supporting 5,000 milk producers with a 4% interest subvention.