Budget Analysis Of Agriculture Sector (2020-2025)

Over the past five years, India's Union Budgets have focused on modernizing the agriculture sector through infrastructure development, financial support, technology adoption, and market reforms. Investments in warehousing, cold chains, and rural connectivity (Kisan Rail, Krishi Udaan) have improved the supply chain for perishables. Credit access has been enhanced via Kisan Credit Cards (KCC) and increased agricultural credit targets. The government has promoted climate-resilient seeds, high-yield crops, and natural farming to ensure sustainability. Initiatives like Atmanirbharta in pulses and edible oils aim for self-sufficiency and food security. Digital reforms, such as expanding e-NAM and integrating e-NWR, have improved market access and storage efficiency. These measures collectively aim to build a resilient, technology-driven, and financially inclusive agricultural sector.

The agriculture sector budgets from 2020 to 2025 have focused on infrastructure, financial support, sustainability, and self-sufficiency. Budget 2020 emphasized solar-powered irrigation (PM-KUSUM), cold chain logistics (Kisan Rail, Krishi Udaan), fishery expansion, and livestock health initiatives. Budget 2021 introduced the Agri Infrastructure Fund, expanded Operation Greens, reformed agricultural marketing laws, and integrated more mandis with e-NAM. Budget 2022 launched PM Dhan-Dhaanya Krishi Yojana to improve low-productivity districts, a Mission for Atmanirbharta in Pulses, and a High-Yielding Seeds Mission. Budget 2023 increased KCC loan limits, launched the Cotton Productivity Mission, promoted natural farming, and established a Makhana Board in Bihar. Budget 2024 introduced 109 climate-resilient crop varieties, mass adoption of natural farming, and a ₹1.52 lakh crore allocation. Budget 2025 continued PM Dhan-Dhaanya Krishi Yojana and the Mission for Atmanirbharta in Pulses, benefiting 1.7 crore farmers across 100 districts.The government's financial commitment to agriculture has significantly increased, with the credit target rising from ₹15 lakh crore in 2020-21 to ₹24-25 lakh crore in 2024-25. Investments in infrastructure, logistics, and natural farming have grown, reflecting a strong push for sustainability and climate resilience in the agriculture sector.In 2024-25, the Ministry of Agriculture has been allocated Rs 1,32,470 crore which is 2.7% of the total budgeted expenditure of the central government. In 2024-25, the Ministry's expenditure is estimated to be 5% higher as compared to the revised estimate of 2023-24 of Rs 1,26,666 crore.

The government has enhanced farmer support through higher credit, subsidies, and direct benefit transfers, improving financial security. Market reforms, including e-NAM expansion and relaxed Essential Commodities Act restrictions, have boosted farmers' market access. The livestock and fisheries sectors have seen significant growth, contributing to rural prosperity. Technology adoption, such as AI, climate-smart agriculture, and digital platforms, has become a key focus.India’s agriculture budget from 2020 to 2025 reflects a progressive shift towards sustainability, technology, and self-reliance.While financial support and infrastructure investments have been significant, long-term success will depend on effective implementation, climate resilience, and rural employment generation.In Budget(2025-2026) The government's new agricultural plans aim to improve farming and support rural communities. Programs like PMDDKY and the High Yielding Seeds Mission will help farmers grow more crops, while the Pulse Mission focuses on producing enough pulses for the country. The Makhana Board in Bihar and the Rural Prosperity Program will create jobs and boost the rural economy. Out of the total ₹1.37 lakh crore budget for agriculture in 2025-26, ₹1.27 lakh crore is for farmers' welfare and agricultural programs. The remaining ₹10,466 crore is for agricultural research and education. A new urea plant in Assam will ensure more fertilizer is available. These efforts will make agriculture stronger, more sustainable, and help farmers earn better incomes.

 

The chart showing the Union Budget Analysis (2020-2025) for the agriculture sector. The bar graph represents the budget allocation in crore rupees, while the line graph shows the credit target (in ₹ lakh crore).

 

(Khemraj Sharma)

(PhD Scholar IIIT Vadodara)