While rural consumption has been on a road to recovery in the past year, the agriculture sector is hoping that the upcoming Budget of 2025 will announce measures that will further bolster rural infrastructure and improve farmer incomes.
An improvement in roads, irrigation facilities and better warehousing infrastructure can improve supply chain efficiency and cap post-harvest losses for farmers, thereby lift the rural economy further.
"Agriculture is equally important and remains central to India’s economic fabric. Initiatives such as One District, One Warehouse, can minimise post-harvest losses and improve supply chain efficiency, resulting in an increase in farmer incomes," said Sanjaya Mariwala, President of IMC Chamber of Commerce and Industry.
Rapid climate change has long been a pain point for the agriculture sector and the industry is hoping for the government to announce a robust crop insurance mechanism, which is vital to deal with the damage caused due to extreme fluctuations in weather conditions.
"By rationalising GST, reforming labour laws and incentivising green technologies, India can address the burgeoning issue of climate change while fostering resilience. These interconnected efforts, backed by public-private collaboration, can transform India into a future-ready, globally competitive economy,” Mariwala said.
Vishal Sharma, Cofounder & CEO of ICICI and NABARD-backed Fintech, AdvaRisk also expects the government to hike the limit on Kisan credit card loans. "We are looking for the government to increase Kisan Credit Card loan limit from Rs 3 lakh currently. The limit has not been revised for several years even as costs of farming have increased substantially. This will spur production growth for agri sector and will support in increasing farming income. Any increase in farmers’ income not just improves their lifestyle but also decreases the risks for banking system as farmers are able to pay back loans on time.," Sharma said.
In addition, farmers are also calling for a review of the MSP regime, a doubling of PM-Kisan income support, access to cheaper long-term credit, and the removal of GST on various agricultural inputs. Ahead of the Budget, the agriculture minister has engaged in discussions with farmer representatives and held a review meeting with state agricultural ministers.
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Agriculture Minister Shivaraj Singh Chouhan, during a virtual review meeting, announced the government's six-point strategy to strengthen the farm sector. This includes boosting per-hectare production through ICAR-led research and introducing new seed varieties.
The strategy also focuses on reducing production costs, promoting micro-irrigation, advancing farm mechanisation, adopting new technologies, and implementing innovative agricultural methods.
In addition, Chouhan highlighted progress in flagship schemes such as PM-KISAN, Pradhan Mantri Fasal Bima Yojana, the DAP fertilizer subsidy, Kisan Credit Card initiative, and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASA).
In 2024-25, the government allocated Rs 65,529 crore towards agricultural schemes, excluding PM-KISAN. Since 2019-20, the agriculture budget has grown at a compounded annual growth rate (CAGR) of 5.4 percent, with non-PM-KISAN spending rising by 6.5 percent annually.
Key contributors to this spending include the crop insurance and modified interest subvention schemes, which together account for more than half of the expenditure on agricultural programmes outside of PM-KISAN.
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