Union Budget 2025-26 was presented by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman in Parliament on February 1, 2025. Following the budget announcement, leaders from the agricultural sector shared their reactions, offering valuable insights into how the proposed measures may impact the future of farming in India. As the budget details are analyzed, these industry experts weigh in on the potential benefits and challenges posed by the new proposals for the agricultural community.
Union Budget 2025-26: Statements and Reactions
Hemant Sikka, President of the Farm Equipment Sector, Mahindra and Mahindra Ltd. & Co-Chair of FICCI’s National Agriculture Committee
“Budget 2025 is growth-focused, keeping in mind the country's fiscal health while unlocking India's real potential, with a strong emphasis on agriculture as a key engine of India's future. Announcing a slew of measures to support the growth of the sector, the budget introduced several initiatives to drive rural prosperity. This is by encouraging sustainable farming practices, strengthening irrigation, improving storage, increasing credit and enhancing capacity in food processing. These initiatives truly have the potential to make India a food basket of the world while driving resilience of the rural economy.”
Simon Wiebusch, Country Divisional Head, Crop Science Division of Bayer in India, Bangladesh and Sri Lanka
"The 2025 Union Budget outlines a comprehensive strategy for enhancing agricultural productivity and sustainability, aligning with the vision of Viksit Bharat. The Finance Minister’s initiatives, such as the PM Dhan Dhanya Krishi Yojana, which aims to benefit 1.7 crore farmers across 100 districts, are particularly noteworthy.
Under this, the emphasis on improving post-harvest storage, irrigation, and credit availability is expected to empower farmers and push economic growth in rural areas. Additionally, the establishment of large-scale clusters for vegetable production and the support for FPOs and start-ups in promoting vegetable supply chains will help to not only promote rural prosperity, boost horticulture sector but also meet the nutrition needs of the country. The focus on climate-resilient crops, dedicated missions focusing on development and distribution of high yielding seeds and guaranteed procurement, will further enhance food security and self-reliance in key areas like oilseeds and key pulses. Additionally, access to new technology and dedicated support for boosting cotton production will further strengthen the sector.
At Bayer, we are committed to supporting these initiatives that align with our mission to advance sustainable agriculture. We look forward to collaborating with the government and other stakeholders to implement these measures effectively and drive positive change in the agricultural sector."
Ajay S Shriram, Chairman and Sr Managing Director, DCM Shriram Ltd
"The Finance Minister, Nirmila Sitaraman has presented a responsible and balanced budget, which meets the conflicting demands of tax concessions and yet spending for long term benefit. She has resisted profligacy and bettered the target for fiscal deficit. It ticks the boxes on all fronts - exports, rural prosperity, agriculture, and spurring consumption. These augers well for the long term growth of the economy.
From the perspective of agriculture, Finance Minister Nirmala Sitharaman rightly called it the first engine of development. The range of areas identified for attention are all significant, ranging from crop diversification to yield improvement and growth in pulses and increase in irrigation. I am delighted at the importance given to National Mission on High Yielding Seeds and Mission on Cotton Productivity. It is well acknowledged that Agriculture Research gives a much higher return on investment. The full benefit on such an initiative will accrue when there is greater collaboration between public research and private sector research, adoption of uniform policies across States, and a time bound approval of new seeds. This is critical that India is not left behind in the race for advanced technology."
Ayush Gupta, Business Head, India, at KRBL Limited.
"The Union Budget 2025 rightly positions agriculture as the first engine of growth, ensuring holistic rural and economic development. The introduction of the Developing Agri Districts Programme, alongside initiatives for crop diversification, irrigation, and enhanced credit access, will directly benefit 1.7 crore farmers, strengthening India’s agricultural backbone.
For the FMCG sector, this budget reinforces India’s consumption-driven economy, fostering growth through rural development, infrastructure, and job creation. Additionally, a strong push toward food processing, post-harvest storage, and supply chain efficiencies will enhance value creation, benefiting both producers and consumers.
At KRBL Limited, we welcome these progressive steps, particularly those empowering farmers and boosting agri-innovation. As India’s leading basmati rice brand, we remain committed to driving quality, sustainability, and technological advancements to align with this growth vision. This Budget paves the way for a resilient, self-reliant agricultural economy, ensuring long-term prosperity for both farmers and consumers."
Haresh Karamchandani, MD & Group CEO, HyFun Foods
"The Union Budget 2025-26 solidifies the commitment of the government toward food processing, agriculture, MSMEs, and exports—the very strong pillars of the economy. Under 'Prime Minister Dhan-Dhaanya Krishi Yojana,' there will be efforts toward enhanced agricultural productivity, improved post-harvest storage, and credit availability to farmers. It would lead to a more resilient supply chain for food processing industries like ours. The 'National Mission on High Yielding Seeds' will improve yield, quality and climate resilience further, which improves the raw material base for this food processing segment.
The government is continuing to push farm exports to a new level, with a strategic goal of reaching $80 billion by 2030. This is also in line with India's aspiration to be a global food powerhouse. Improved cold chain infrastructure and streamlined export logistics will empower Indian food brands to expand their global footprint. The MSME sector, which forms the backbone of India's food industry, has received a much-needed boost with enhanced credit guarantees, allowing businesses to invest in advanced technology and expand production. The increase in the Kisan Credit Card loan limit from ₹3 lakh to ₹5 lakh will also strengthen the farming ecosystem.
The National Institute of Food Technology in Bihar will further accelerate the innovation in food processing and extend value addition, which will further enhance India's competitiveness in the global market. Combined with the Export Promotion Mission and BharatTradeNet for seamless trade facilitation, these measures will make it easier for food processors like HyFun Foods to scale and access international markets with ease. These transformative initiatives will well establish the budgetary foundation for a thriving food ecosystem. At HyFun Foods, we look forward to utilizing these opportunities and contributing to India's economic growth.”
Ankur Aggarwal, Chairman - CropLife India and Managing Director of Crystal Crop Protection Ltd.
“The precise focus on enhancing productivity in the Union Budget 2025-26 is expected to foster significant growth in the agricultural sector, benefiting farmers and promoting sustainable farming practices. The Government’s well-defined vision to prevent migration from rural areas, coupled with the scheme that prioritizes women and youth, is a welcome and forward-thinking step. This initiative is set to drive greater adoption of modern technologies, including drones and precision agriculture, thereby providing a much-needed boost to innovation and efficiency in the sector.
It is heartening to witness the inclusion of productivity and resilience in agriculture as one of the key priorities of the Union Budget 2025. The crop protection industry looks forward to partnering with both the Centre and State Governments to focus on the 100 districts with low productivity. Together, we aim to enhance agricultural output, improve sustainability, and support farmers in these regions through targeted interventions and innovative solutions”.
CropLife India and its members have been urging the Government to consider the following measures:
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Provide a 200% weighted deduction on R&D expenses for pesticide companies.
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Retain a uniform basic customs duty of 10% for both technical raw materials and formulations.
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Reduce the GST on agrochemicals from the current 18% to 12%.
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Allocate Funds in Budget to Strengthen the Extension Mechanism
These measures would have directly benefited the farmers, further empowering them and enhancing the agricultural sector as a whole.”
Raghavan Sampathkumar, Executive Director, Federation of Seed Industry of India (FSII)
“The Union Budget 2025-26 demonstrates a strong commitment to agricultural growth and farmer welfare. Finance Minister Nirmala Sitharaman has presented a comprehensive and forward-looking budget that prioritizes rural prosperity, self-sufficiency, and technological advancement in the agricultural sector.
National Mission on High-Yielding Seeds: This new initiative, along with the Cotton Productivity Mission, demonstrates India's investment in cutting-edge agricultural research and the promotion of climate-resilient, high-yield seed varieties. Restoration of 200% income tax deduction on R&D expenditures would certainly help the industry contribute significantly to this mission and we are hopeful that the Government will consider it positively.
PM Dhan Dhanya Krishi Yojana: This transformative initiative will target 100 low-productivity districts, improving crop intensity, credit access, irrigation, and post-harvest storage at the Panchayat level. The program is expected to benefit 1.7 crore farmers, leading to higher yields, better market access, and increased rural employment opportunities
Self-Reliance Mission for Pulses and Oilseeds: I especially welcome the six-year mission focusing on tur, urad, and masoor. It will strengthen domestic food security and reduce import dependency. This initiative aims to create a stable and predictable pricing framework for farmers
Emphasis on Fruit and Vegetable Production: The government's focus on horticulture aligns with changing consumer habits, potentially improving nutrition, food security, and farmer incomes simultaneously
This Budget sets a strong foundation for a prosperous agricultural sector, benefiting millions of farmers while driving India towards food self-sufficiency and economic resilience. The focus on technological advancements, sustainable practices, and targeted interventions demonstrates the government's commitment to transforming Indian agriculture.”
Dr. R.G Agarwal, Chairman Emeritus, Dhanuka Agritech Limited
"We highly appreciate the government's initiative to make India the food basket of the world. The Dhan Dhaniya Krishi Yojana for 1.7 crore farmers in 100 low-productivity districts is a monumental step towards rural prosperity. The Edible Oil Mission, enabling farmers to enter into procurement agreements with agencies like NAFED and NCCF, will provide price security, enhance domestic oilseed production, and enhance India's export strength. The government's move to enhance vegetable production to match growing consumption is also commendable.
This budget is a significant step towards a stronger, Make in India agriculture sector boost spirit of farmers. The National Mission on High Yielding Seeds, storage facilities after production, KCC loans for 7.7 crore farmers increased from Rs 3 Lacs to Rs 5 Lacs and the creation of the Makhana Board in Bihar are commendable initiatives, they are important steps to improve agricultural productivity and support farmers. Also, the announcement of a 6-year mission for 'Atmanirbharta' in pulses, including procurement agreements for toor, urad, and masoor, is a testament to the government's commitment to making the agricultural sector stronger and the farmers prosperous.
While many positive initiatives have been put before us we asked the government to revisit and make it 5% GST on essential agricultural inputs. These initiatives are in line with our vision of a self-reliant, prosperous, and sustainable agricultural future. We thank the government for these forward-looking decisions that will spur agricultural development and boost India's path towards Aatmanirbhar Krishi."
Chirag Sharma, CEO, Drone Destination
"We welcome an extremely positive and forward-looking budget. The government’s commitment to boosting agriculture, MSMEs, and women’s empowerment aligns perfectly with our vision for drone technology to create real impact in sectors like agriculture and skill development. The announcement of support for MSMEs, including expanded investment and turnover limits, is a great boost for our industry.
The push for self-reliance in sectors like edible oil and pulses, along with the emphasis on rural development, presents significant opportunities for drones to enhance efficiency in agriculture and logistics, especially for women-led initiatives like Drone Didi. Moreover, India’s import of 1.14 MT of Tur Dal last year highlights the urgent need for local production of pulses. By utilizing drones, we can improve the cultivation of pulses like Tur Dal, which grow above 5 feet, by ensuring better care and monitoring throughout their growth cycle.
Additionally, the focus on strengthening domestic production and scaling up 'Make in India' initiatives aligns with our goal to develop affordable drone solutions for both urban and rural masses. The government's vision for a national mission to improve farmers' livelihoods and increase women’s participation through initiatives like Drone Didi is truly inspiring and will provide immense growth opportunities for the drone industry in India."
Sneha Singh, Managing Director, The Good Food Institute India.
“This Union Budget recognizes agriculture as the foundation of building a sustainable and resilient food system in India. The Developing Agri Districts Programme and the push for crop diversification as well as the six-year mission for pulses offer a huge promise to diversify the raw materials for the global alternative protein sector with India capturing a significant share of the supply chain. A commitment to a smart protein economy can solidify innovative and efficient value chains for climate resilient and indigenous crops, invite private sector investment, secure farmer incomes and improve agricultural resilience, while protecting our natural resources and offering the Indian people nutrition security.”
Balram Singh Yadav, Managing Director, Godrej Agrovet Limited
"The budget proposals showcase a comprehensive strategy to strengthen India's agricultural sector, positioning it as a key driver in our journey towards Viksit Bharat. By addressing critical growth levers such as high-yielding, climate-resilient seeds, boosting cotton productivity, and achieving self-sufficiency in pulses, the budget lays a robust foundation for a resilient agri-economy.
The enhanced loan limit under the Modified Interest Subvention Scheme—from Rs 3 lakh to Rs 5 lakh—for Kisan Credit Card loans will provide vital financial support to small fisheries and dairy farmers, empowering them to scale operations. India’s position as the second-largest global producer of fish and aquaculture is further bolstered by the reduction in basic customs duty on a key input material for feed, strengthening competitiveness and sustainability in the sector.
The budget’s strategic push for self-reliance in pulses and edible oils, coupled with the new integrated program for fruits and vegetables, ensures both nutritional security and agricultural sustainability. With targeted initiatives like crop diversification and sustainable marine sector development, these measures not only enhance productivity but also reinforce the central role of farmers in driving India’s growth story."
Rajavelu N.K. CEO - Crop Protection Business, Godrej Agrovet Limited & Co-Chairman of the FICCI Committee on Crop Protection Chemicals
"The government’s enhanced focus on crop productivity and protection is a promising step toward uplifting Indian farming families. The Mission for Cotton Productivity, integrating science and technology with extra-long staple cotton varieties, addresses declining cotton acreage while helping farmers boost yields and profits.
Proposals to reopen dormant urea plants and involve FPOs in vegetable and fruit initiatives are commendable, addressing both input and output challenges. However, awareness of urea's excessive use and effective implementation will be critical.
The Prime Minister Dhan Dhanya Krishi Yojana, targeting 1.7 crore farmers across 100 districts, aims to enhance output, promote crop diversification, and improve post-harvest storage—key to driving rural prosperity and resilience.
As we progress toward self-reliance, integrating crop protection, sustainable farming, and robust post-harvest infrastructure will be essential to increasing farmers' incomes, ensuring food security, and strengthening India’s global agricultural leadership."
Dr. Gyanendra Shukla, MD and CEO of Rallis India Limited
"Firstly, I would like to extend my heartfelt congratulations to Finance Minister Nirmala Sitharaman on presenting her eighth consecutive budget. The Union Budget 2025 adopts a forward-looking approach to strengthen Indian agriculture with a focus on self-reliance, sustainability, and rural empowerment. Prioritizing agriculture, MSMEs, and exports lays a strong foundation for long-term resilience.
The PM Dhan Dhanya Krishi Yojana will transform 100 agri districts by enhancing productivity, irrigation, storage, and credit access for 1.7 crore farmers. The National Mission on High-Yielding Seeds, targeting 100+ climate-resilient varieties, will boost yields and incomes. A renewed push for Atmanirbharta in edible oilseeds and the Mission for Cotton Productivity will further support farmers and reduce import dependence.
By advancing rural prosperity, crop diversification, and scientific innovation, this budget reinforces the government’s commitment to self-sufficient agriculture. At Rallis India, we remain dedicated to empowering farmers with sustainable crop protection and sustainable farming solutions, aligning with the government’s vision for a more resilient and prosperous agricultural sector."
Ranjit Barthakur, Founder of Balipara Foundation
“The Union Budget 2025 signals a strategic shift with central agencies set to procure everyday use pulses over the next four years. While we can expect stability in procurement which can offer relief to farmers, the true test would lie in fair pricing, efficient distribution mechanisms and long-term sustainability. Will this move empower the farmers or merely manage the supply chains? The answer is yet to be discovered.
For the Northeast especially, where pulse cultivation is still evolving, this move presents both opportunities and challenges. With the right support in infrastructure, market access and fair procurement mechanisms, this could encourage pulse farming in the region, strengthening local economies and food security. The question is: will this truly reach the farmers of the Northeast?”
