Chandigarh: With a special focus on improving the income of farmers in low-productivity districts, Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2025-26, announced the launch of the Prime Minister Dhandhaanya Krishi Yojana to support 1.7 crore farmers across 100 low-productivity districts.
According to the Finance Minister, the scheme has been designed to improve agricultural productivity, promote crop diversification, enhance irrigation facilities, and strengthen post-harvest storage at the panchayat and block levels. The scheme will also ensure the availability of both short-term and long-term agricultural credit. The programme will be implemented in collaboration with state governments, the minister said.
The scheme aims to increase crop production, encourage farmers to grow different types of crops using eco-friendly methods, improve storage facilities at the village and block levels, enhance irrigation systems, and provide both short-term and long-term loans to farmers.
With a greater focus on the agriculture sector, the Finance Minister announced an increase in the budget allocation for the agriculture sector to Rs 1,22,528.77 crore in 2024-25.
The minister claimed that financial support has resulted in an increase in foodgrain production, rising from 204.6 million tonnes in 2004-05 to an estimated 332.3 million tonnes in 2023-24. Additionally, she stated that the Minimum Support Price (MSP) for paddy and wheat had risen from Rs 850 and Rs 1,080 per quintal in 2008-09 to Rs 2,300 and Rs 2,425 per quintal in 2023-24, ensuring better incomes for farmers. The total MSP payout for paddy and wheat has also surged, reaching Rs 12.51 lakh crore and Rs 5.44 lakh crore in the last decade.
In the Budget, key farmer-centric initiatives continued to receive strong financial backing.
The PM-KISAN scheme has disbursed Rs 3.46 lakh crore to farmers, while the Pradhan Mantri Fasal Bima Yojana (PMFBY) has settled insurance claims worth Rs 1.65 lakh crore. Over 1,400 mandis have been integrated into the e-NAM platform, providing farmers with better market access. The Agricultural Infrastructure Fund (AIF) has sanctioned Rs 52,738 crore for over 87,500 projects, helping improve post-harvest management, the minister said.
Union Agriculture Minister Shivraj Singh Chouhan praised the Budget, calling it a step toward a self-reliant India.
He highlighted the expansion of the Kisan Credit Card (KCC) loan limit from Rs 3 lakh to Rs 5 lakh, which will provide farmers with greater financial support.
The Union Minister said that to boost fertiliser production, the government has reopened three closed urea plants in eastern India and plans to set up a new plant in Assam with a capacity of 12.7 lakh metric tonnes per year.