These steps are likely to increase farmers’ income, which in turn may benefit tractor and farm equipment manufacturers in the country, and also boost 2W and the entry-level car segment.
01 Feb 2025 | 1764 Views | By Darshan Nakhwa
Finance Minister Nirmala Sitharaman announced a host of initiatives to boost the agriculture sector output and rural economy in the Union Budget 2025, presented in the Lok Sabha today. The government announced programmes aimed at improving productivity, providing long and short-term credit to farmers, and increasing employment in the sector. ...
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Finance Minister Nirmala Sitharaman announced a host of initiatives to boost the agriculture sector output and rural economy in the Union Budget 2025, presented in the Lok Sabha today. The government announced programmes aimed at improving productivity, providing long and short-term credit to farmers, and increasing employment in the sector. It also plans to utilise the India Post network to drive the rural economy.
These initiatives are likely to increase farmers’ income, which may drive sales of tractors and farm equipment in the country, as well as those of entry level vehicles. Automakers such as Maruti Suzuki India and Hero MotoCorp, who get large part of their sales from entry-level segment, are also likely to benefit from announcements.
The union will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with the states. The programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters, the finance minister said while presenting the Budget.
“It aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices, augment post-harvest storage at the panchayat and block level, improve irrigation facilities, and facilitate availability of long-term and short-term credit. This programme is likely to help 1.7 crore farmers,” Sitharaman said.
The government will also launch the ‘Rural Prosperity and Resilience’ programme, in partnership with states. The programme will focus on youth, women, landless families, marginal and small farmers from rural areas. The programme, “will address under employment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity,” Sitharaman said.
“Global and domestic best practices will be incorporated and appropriate technical and financial assistance will be sought from multilateral development banks. In Phase-1 (Rural Prosperity and Resilience programme), 100 developing agri-districts will be covered,” she added.
According to the finance minister, the government will also enhance the loan limit under Modified Interest Subvention Scheme to Rs 5 lakh from Rs 3 lakh, for loans taken through Kisan Credit Cards. Kisan Credit Cards facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers.
Further, the government will implement the National Mission for Edible Oilseed to achieve self-sufficiency in edible oils. “The government will now launch a 6-year ‘Mission for Aatmanirbharta in Pulses’ with a special focus on Tur, Urad and Masoor. Central agencies (NAFED and NCCF) will be ready to procure these three pulses, as much as offered during the next four years from farmers who register with these agencies and enter into agreements,” Sitharaman said.
The government will also launch missions for high yielding seeds and cotton productivity. The mission on high yielding seeds will focus on strengthening the research ecosystem, targeted development and propagation of seeds with high yield, pest resistance and climate resilience, and commercial availability of more than 100 seed varieties released since July 2024, the finance minister said.
The ‘Mission for Cotton Productivity’ will be a 5-year mission which will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties, Sitharaman said. “The best of science and technology support will be provided to farmers. Aligned with our integrated 5F vision for the textile sector, this will help in increasing incomes of the farmers, and ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector,” she said.
The government has also announced a comprehensive vegetable and fruits programme to promote production, supplies, processing, and remunerative prices for farmers. Further, a makhana board will be established in Bihar to improve production, processing, value addition, and marketing of makhana. The board will provide training to makhana farmers and will also work to ensure they receive the benefits of all relevant government schemes, the Finance Minister said.