India is preparing to significantly boost its agricultural budget, with an anticipated increase of 15%, totaling approximately $20 billion in the 2025/26 fiscal year. This represents the largest increase in agricultural spending in six years, aiming to address key issues such as rural income growth, inflation control, and agricultural productivity.
The government intends to allocate funds to enhance crop yields by developing high-yielding seed varieties and expanding storage and supply chain infrastructure. Efforts will also focus on increasing the production of pulses, oilseeds, vegetables, and dairy products. The budget will also address research funding to support the development of new crop varieties, with a particular emphasis on improving agricultural productivity.
India, the world's second-largest producer of key crops such as rice, wheat, and sugar, has struggled with rising food prices. In an attempt to manage inflation, the government has implemented export restrictions on certain crops like wheat and introduced a duty-free import policy for pulses.
The government’s long-term goal is to boost agricultural exports, aiming for $80 billion in farm exports by 2030, up from the current $50 billion. Additionally, the budget is expected to increase the limit for subsidized farm loans and expand crop insurance to benefit more farmers. Investments in the fisheries sector and incentives for food processing firms are also expected.
However, experts argue that while the increase in funding is positive, deeper issues such as low productivity and stagnant incomes need to be addressed through direct transfers to farmers and improved crop procurement systems.
