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The Indian Union Budget 2025 has unveiled a series of significant initiatives aimed at revitalizing the agricultural sector, bolstering rural employment, and enhancing access to credit for farmers. The budget's focus on these key areas reflects a strategic commitment to strengthening rural livelihoods and fostering economic growth from the grassroots level. The centerpiece of the agricultural reforms is the introduction of several new schemes designed to address specific challenges facing farmers, particularly in less productive regions. One noteworthy program is the Prime Minister Dhan-Dhaanya Krishi Yojana, targeting 100 underperforming agricultural districts. This initiative promises to benefit a substantial 17 million farmers by focusing on productivity improvements, crop diversification strategies, and the enhancement of post-harvest infrastructure. The collaborative effort between the central government and individual state governments underscores the concerted approach being taken to achieve tangible outcomes. The initiative's success hinges on effective implementation and robust monitoring mechanisms to ensure its impact reaches the intended beneficiaries.
Addressing the persistent issue of rural unemployment, the Budget introduces the Rural Prosperity and Resilience program. This program's significance lies in its proactive approach to creating sustainable employment opportunities within rural communities. By actively fostering employment prospects, the program aims to reduce the compelling need for rural-urban migration. The program specifically targets vulnerable populations, including rural women, young farmers, small and marginal landholders, and landless laborers. By empowering these marginalized groups, the program not only addresses unemployment but also tackles the issue of socio-economic inequality. This holistic approach suggests a commitment to long-term sustainable development within rural communities. Furthermore, the program's focus on sustainable employment emphasizes job creation that is environmentally sound and economically viable in the long run.
The Budget demonstrates a strong commitment to achieving self-sufficiency in pulses production. A six-year mission has been launched to boost the cultivation of tur, urad, and masoor dal. This initiative will involve significant engagement from farmer cooperatives such as Nafed and NCCF, who will be responsible for procuring pulses from registered farmers over a four-year period. The guaranteed procurement at minimum support prices is designed to incentivize farmers and provide them with a stable market. This assurance of stable demand and improved income prospects serves as a powerful tool to encourage greater participation in pulses cultivation and contribute to national food security. The longer-term strategy aims to reduce India's reliance on pulses imports, which currently accounts for approximately 15% of the annual consumption. The initiative acknowledges the challenges of fluctuating global prices and aims to create a more resilient and self-reliant domestic market.
Beyond pulses, the Budget also tackles challenges in other agricultural sectors. A dedicated Makhana Board is being established in Bihar to support the makhana (fox nut) sector, improving production, processing, and marketing. This initiative demonstrates the government's attention to regional specificities and the potential of promoting niche agricultural products. Simultaneously, a comprehensive horticulture development program will enhance the production, processing, and supply chain efficiency of fruits, vegetables, and Shree Anna. The collaborative approach involving states, farmer-producer organizations, and cooperatives aims to improve integration and enhance efficiency across the entire value chain. The emphasis on improved post-harvest storage and credit availability underscores the comprehensive approach to addressing the multiple challenges in the horticulture sector. The aim is not only to increase production but also to ensure farmers receive remunerative prices for their produce.
Another crucial aspect of the budget is its impact on credit access for farmers. The increase in the Kisan Credit Card (KCC) short-term loan limit from ₹3 lakh to ₹5 lakh represents a significant boost for 77 million farmers, including those involved in fisheries and dairy farming. This move is expected to provide much-needed liquidity to small farmers and enhance their overall financial security. Access to credit plays a pivotal role in fostering agricultural development, enabling farmers to invest in improved technologies, inputs, and infrastructure. Improved access to credit is directly linked to increased productivity and better resilience in the face of market fluctuations and climatic challenges. The enhancement of credit facilities signifies a crucial step towards empowering farmers and creating a more equitable agricultural landscape.
To support long-term productivity enhancements, a new Research Ecosystem Mission is being launched to focus on the development of high-yield, pest-resistant, and climate-resilient seed varieties. Over 100 new seed types will be commercially released to improve productivity and climate adaptation. This investment in agricultural research and development recognizes the paramount importance of innovation in achieving sustainable agricultural growth. The mission’s emphasis on climate resilience underscores the need to adapt to the changing climatic conditions and enhance the robustness of agricultural practices. Similarly, a five-year Cotton Mission aims to boost the cultivation of extra-long staple cotton to meet the demands of the textile sector. These strategic investments in research and development demonstrate a long-term commitment to sustainable and innovative agricultural practices.
Furthermore, the budget includes initiatives to address challenges beyond agriculture. The establishment of a new urea plant in Namrup, Assam, signifies efforts to boost domestic fertilizer production. Increased financial support to the National Cooperative Development Corporation (NCDC) aims to expand cooperative lending, providing additional resources for farmers and rural entrepreneurs. The budget also proposes a sustainable fishing framework, addressing the needs of fishing communities. These measures highlight a broader commitment to developing the nation's resources and providing support to various sectors crucial to the economy.
Source: Agriculture, rural employment, credit access get a leg-up