In a new move to strengthen India’s agricultural sector, Finance Minister Nirmala Sitharaman announced a series of transformative initiatives in the Union Budget 2025-26. Among the key highlights is a significant enhancement to the Kisan Credit Card (KCC) scheme, aimed at providing greater financial support to farmers across the country.
The loan limit under the KCC scheme has been increased from ₹3 lakh to ₹5 lakh, marking a substantial boost in accessible credit for farmers. This revision is part of the modified interest subvention scheme and is expected to benefit approximately 7.7 crore farmers, including those engaged in fisheries and dairy sectors.
Launched in 1998, the KCC scheme has been instrumental in providing short-term loans to farmers for essential agricultural inputs such as seeds, fertilizers, pesticides, and other production-related expenses. The increased loan ceiling is poised to empower farmers further, enabling them to meet financial requirements for both crop cultivation and allied activities.
Six-Year Program for Pulses and Cotton Production
The budget also introduced a comprehensive six-year program to enhance the production of pulses and cotton. For pulses such as pigeon peas, black matpe, and red lentils, state agencies will procure these crops at guaranteed prices, ensuring stable incomes for farmers and reducing India’s reliance on imports. Notably, India spent a record $5 billion on pulse imports in 2024, underscoring the need for self-sufficiency.
In the cotton sector, the government plans to focus on boosting the production of extra-long staple cotton through research and development initiatives. This move comes in response to declining yields, which have transformed India, the world’s second-largest cotton producer, into a net importer.
National Mission for High-Yielding Seed Varieties
To address the challenges posed by shrinking farmlands and erratic weather patterns, the government announced a new National Mission for High-Yielding Seed Varieties. This initiative aims to develop resilient and high-yielding seed varieties, enhancing crop productivity and ensuring long-term food security.
Increased Subsidized Credit for Farmers
Recognizing the financial struggles faced by farmers, the budget also raised the limit for subsidized farm loans. This measure is expected to provide greater access to affordable credit, enabling farmers to invest in modern farming practices and improve their livelihoods.
New Urea Plant to Ensure Fertilizer Supply
In a bid to address the critical need for crop nutrients, the government announced plans to establish a new urea plant. This initiative aims to ensure a steady supply of fertilizers, thereby supporting agricultural productivity and reducing dependency on imports.
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