With the aspiration of Viksit Bharat, the Union Budget for FY 2025-26 aims to revitalize India’s agricultural and allied sectors by addressing key structural challenges and introducing targeted reforms. This budget prioritizes increasing access to affordable credit, expanding crop insurance, promoting Agri-value chains and achieving balanced regional development with the allocation of whopping ₹1.52 trillion. One of the major highlights of the budget is the increase in the limit of subsidized farm loans from ₹3 lakh to ₹5 lakh per farmer, a move aimed at broadening financial inclusion and supporting farm families. Additionally, the government has set an ambitious target of achieving atmanirbharta (self-sufficiency) in pulses by 2030. Further, budget allocated ₹109 billion in incentives for food processing to drive value addition. The fisheries sector has also received a boost with a five-year investment plan of $9 billion to enhance infrastructure and productivity. The government has recognized the critical role of agricultural research and education in driving long-term productivity and innovation. The budget for agricultural research and education in FY 2025-26 is ₹10,466.39 crore, reflecting a modest increase of 3.05%over the previous year. This increase, while positive, could have been more substantial given the rising complexity and capital-intensive nature of modern agricultural research.

First, a significant concern addressed in this budget is food inflation, which has been persistently high, crossing 10% year-on-year in late 2024. To tackle this, the government has extended duty-free imports of pulses and imposed selective export restrictions to maintain price stability. A parity in favour of pulses, however, is essential to be brought through effective implementation of minimum support prices (MSP) and procurement.

Second, Climate change risks, including erratic weather patterns and declining water resources, underscore the need for increased investment in resilient agriculture. The budget outlines measures for irrigation, soil health management, and climate-adaptive technologies to protect farmers from climatic shocks. These interventions reflect a growing recognition of the........

© Kashmir Images