India’s Union Budget 2025-26 fails to address the critical issues facing agriculture, with reduced allocations to key schemes and programs, leaving farmers’ challenges unaddressed.
The Union Budget 2025-26 has failed to address the pressing concerns of India’s agricultural sector, with reduced allocations to key schemes and programs. Despite the claims made in the Economic Survey 2024-25, which projected a positive outlook for Indian agriculture, experts argue that the sector continues to struggle with low productivity, shrinking profitability, and falling real incomes.
The Ministry of Agriculture and Farmers’ Welfare, responsible for implementing central agricultural policies, has faced criticism for budgetary cuts that could hinder growth. While the Economic Survey credited the resilience of Indian agriculture to increased productivity and diversification, a deeper analysis suggests otherwise. Data indicates that productivity growth in food grain and non-food grain crops between 2014-15 and 2022-23 was lower than in the preceding decade. Additionally, crop diversification has been limited, with only marginal shifts towards pulses in a few states, while the livestock and fisheries sectors remain underdeveloped.
Declining Budget Allocations for Agriculture
The budgetary allocation for agricultural research, a crucial factor in improving productivity and climate resilience, has seen only a minor increase of ₹21 crore between 2023-24 and 2025-26. In contrast, the National Mission on Natural Farming, which lacks scientific backing, has received ₹616 crore, reflecting misplaced priorities.
Spending on crop husbandry, which includes various schemes and institutions, has been cut by ₹5,195 crore. Similarly, the Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s flagship crop insurance scheme, has suffered a drastic reduction of ₹3,622 crore, further weakening the safety net for farmers.
New crop-based missions announced in the budget, such as the Cotton Technology Mission (₹500 crore), the Mission for Pulses (₹1,000 crore), and the National Mission on Hybrid Seeds (₹100 crore), have received insufficient funding. Additionally, commodity boards that support specific agricultural sectors remain underfunded. For example, the allocation for the Coffee Board has remained stagnant, the Rubber Board received only ₹40 crore more, and the Spices Board saw an increase of just ₹24 crore. The Coconut Development Board’s budget has even been cut from ₹39 crore in 2023-24 to ₹35 crore in 2025-26.
Livestock and Fisheries Also Overlooked
Despite claims of increased diversification into livestock and fisheries, these sectors have been fiscally neglected. The total expenditure on fisheries will rise by only ₹87 crore, while animal husbandry’s budget has been slashed by ₹407 crore. The dairy sector, a major contributor to rural employment, will see only a modest increase of ₹321 crore, further highlighting the lack of substantial investment.
The newly announced Prime Minister Dhan-Dhaanya Krishi Yojana aims to target 100 districts with low productivity and below-average credit access, similar to the Aspirational Districts Programme. However, agriculture remains a state subject, and concerns remain about the implementation model. While the budget speech mentioned a “partnership with states,” experts fear excessive centralization could burden state governments financially.
Missed Opportunity for Agricultural Growth
The rural electorate, which delivered a shock defeat to the ruling party in several states during the June 2024 elections, had hoped for a more favorable budget. However, the latest financial plan offers little relief. The budget speech emphasized agriculture multiple times, but the actual allocations fail to support these claims. Key schemes remain underfunded, and the real challenges facing farmers—low yields, falling real incomes, and stagnant rural wages—remain unaddressed.
As the agricultural sector continues to struggle, experts argue that a more significant policy shift is needed to ensure sustainable growth and support for millions of farmers across India.
