The Union Budget 2025-26 has introduced several key initiatives to boost agricultural productivity and strengthen rural resilience. Among the most significant announcements is the launch of the ‘Prime Minister Dhan-Dhaanya Krishi Yojana,’ aimed at improving agricultural performance in 100 low-productivity districts. Union Finance Minister Nirmala Sitharaman, while presenting the budget in Parliament today on February 1, 2025, emphasized the importance of agriculture as one of the four engines of economic growth alongside MSMEs, investment, and exports.
The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ seeks to enhance crop yields, promote sustainable farming practices, and strengthen post-harvest storage facilities at the local level. By converging existing agricultural schemes and implementing specialized measures, the programme aims to address challenges in districts with moderate crop intensity and below-average credit access. Additionally, the initiative will facilitate both long-term and short-term credit availability, benefiting approximately 1.7 crore farmers across the country.
In a broader effort to develop rural India, the government also announced a ‘Rural Prosperity and Resilience’ programme. This initiative, undertaken in partnership with state governments, aims to address underemployment in agriculture through skill development, technological advancements, and economic investments. The programme intends to create ample rural employment opportunities, making migration an option rather than a necessity.
The initiative will focus on empowering rural women, young farmers, marginal and small-scale farmers, and landless families by fostering entrepreneurship and financial independence. The first phase will cover 100 developing agricultural districts, incorporating global best practices and seeking assistance from multilateral development banks.
Aiming for self-sufficiency in pulses, the government will launch a six-year ‘Mission for Aatmanirbharta in Pulses’ with a special focus on Tur, Urad, and Masoor. India has made significant steps in pulse production, with cultivated areas expanding by 50% due to government support and remunerative prices.
As demand for pulses continues to rise with increasing incomes and nutritional awareness, the new mission will focus on developing climate-resilient seeds, improving protein content, enhancing productivity, and strengthening post-harvest management. To ensure stability in pulse procurement, central agencies such as NAFED and NCCF will be ready to procure these three pulses from registered farmers over the next four years.
Recognizing the growing consumption of vegetables, fruits, and Shree-Anna due to rising health consciousness, the government has also introduced a comprehensive programme to boost their production, supply chains, and processing.
This initiative, launched in partnership with state governments, aims to ensure fair prices for farmers while promoting nutritional security for consumers. Institutional mechanisms, including farmer producer organizations and cooperatives, will play a crucial role in implementing this programme effectively.
Additionally, to address the credit needs of rural communities, the government has directed public sector banks to develop a ‘Grameen Credit Score’ framework. This system will help facilitate loans for members of self-help groups and individuals in rural areas, enabling them to access financial resources with greater ease.
