VMPL
New Delhi [India], February 3: The recently introduced Union Budget for the financial year 2025-26 has placed a significant emphasis on revitalizing the agricultural sector, which has always been the backbone of India's economy. Agriculture is not just a means of livelihood for millions; it plays a crucial role in ensuring food security and sustaining rural communities. With approximately 58% of the Indian population relying on agriculture for their livelihoods, its importance cannot be overstated. This sector provides essential raw materials for industries, contributes to national income, and supports the vast rural economy that forms the foundation of India's socio-economic fabric.
Let us discuss the key takeaways from this budget with Dr. PS Gahlaut, Managing Director of Indian Potash Limited.
In the recently unveiled Union Budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman made significant strides in revitalizing the agricultural sector, emphasizing its critical role in India's economic landscape.
One of the flagship initiatives is the Pradhan Mantri Dhan-Dhanya Krishi Yojana, aimed at enhancing agricultural productivity in 100 districts identified for their low productivity and below-average credit parameters. This program focuses on crop diversification, sustainable practices, improved irrigation facilities, and post-harvest storage solutions, with an expected benefit for approximately 1.7 crore farmers.
Additionally, the budget announced an increase in the Kisan Credit Card (KCC) loan limit from Rs3 lakh to Rs5 lakh. This change is designed to enhance financial accessibility for around 7.7 crore farmers, fishermen, and dairy farmers currently utilizing the KCC scheme. By providing greater financial flexibility, this initiative aims to empower farmers to invest in essential agricultural inputs and modern practices.
Furthermore, a comprehensive Rural Prosperity and Resilience Program will be launched to tackle under-employment in agriculture through skill development and investment in technology. This initiative seeks to create ample opportunities in rural areas, ensuring that migration becomes a choice rather than a necessity, particularly for women, young farmers, marginal farmers, and landless families. Collectively, these measures reflect a robust commitment to revitalizing agriculture and fostering sustainable rural development in India.
Dr. PS Gahlaut of Indian Potash Limited says, "As Union Finance Minister Nirmala Sitharaman put it, "The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity." It sounds great, who wouldn't want to stay in their village instead of moving to the big city for work? Many farmers are living away from their families in difficult conditions just for livelihood"
"This initiative aims to empower local communities with the tools and resources they need to thrive right where they are. By focusing on enterprise development and financial independence for rural women, the plan is to uplift entire communities and make them less reliant on urban migration." He adds.
Another significant initiative is the Mission for Aatmanirbharta in Pulses, which seeks to achieve self-sufficiency in edible oils and pulses over the next six years. This mission will focus on key crops such as tur, urad, and lentils, with central agencies like NAFED and NCCF set to procure pulses from farmers over the next four years to stabilize prices and support production.
Additionally, a Comprehensive Programme for Vegetables & Fruits will be implemented to enhance production, streamline supply chains, and improve processing methods for these essential crops. This initiative aims to ensure that farmers receive remunerative prices while actively involving farmer-producer organizations (FPOs) and cooperatives in the process.
The Mission for Cotton Productivity has been announced as a five-year initiative designed to boost cotton production and promote the cultivation of long-staple varieties. This mission aims to increase farmers' incomes while ensuring a steady supply of high-quality cotton for India's textile industry.
Finally, the National Mission on High Yielding Seeds will strengthen agricultural research by providing farmers access to quality seeds. Over 100 new seed varieties released since July 2024 will be made commercially available through this initiative. Collectively, these measures reflect a robust commitment to revitalizing agriculture and fostering sustainable rural development in India.
"Quality seeds are the foundation of successful farming--without them, all the hard work and dedication of farmers can end up being just a lot of wishful thinking! With the National Mission on High Yielding Seeds set to provide access to over 100 new varieties, it's clear that we're finally ready to turn those dreams into bountiful realities. After all, you can't expect a bumper harvest from a handful of hope!" opines Dr. PS Gahlaut.
There will also be a notable focus on the establishment of a Makhana Board in Bihar. This dedicated board is designed to enhance the production, processing, and marketing of Makhana, also known as fox nuts, which is a significant agricultural product for the state, accounting for approximately 90% of India's total production. Recognizing the challenges faced by Makhana farmers--such as low productivity, inadequate food processing infrastructure, and inefficient marketing systems--the Makhana Board will provide essential guidance and training to farmers while facilitating access to various government schemes. With an allocated budget of Rs100 crore, this initiative aims to improve production techniques by promoting high-yield seed varieties and modern farming practices.
Dr. PS Gahlaut states, "I believe this is one of the best decisions as fox nuts are becoming highly popular in diets not only in India but internationally as well." Forming a Makhana Board will undoubtedly help streamline and organize the production and marketing of this increasingly sought-after superfood. After all, with Bihar producing about 90% of India's makhana, it's about time we put on our thinking caps and turned this humble snack into a global sensation!"
In addition to the Makhana Board, the budget outlines plan for urea supply augmentation, including the establishment of a new urea plant in Namrup, Assam, with an annual production capacity of 12.7 lakh metric tonnes. The government also intends to restart production at three idle urea plants in the eastern region to further enhance domestic supply.
Furthermore, the budget highlights the potential of leveraging India Post for rural development. With a vast network of 1.5 lakh rural post offices and support from 2.4 lakh Dak Sevaks, India Post is set to play a pivotal role in fostering rural economic growth. This initiative aims to reposition India Post as a catalyst for development in rural areas, ensuring that farmers and local communities can access essential services and support.
These initiatives reflect a holistic approach toward strengthening India's agricultural sector while addressing the needs of its diverse farming community. By prioritizing sustainable practices and financial support for farmers, this budget aims not only to uplift agrarian productivity but also to ensure long-term rural prosperity across the nation.
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