Budget 2025 has the potential to serve as a turning point in aligning India’s agricultural practices with long-term sustainability goals

With India’s agriculture sector evolving rapidly, Budget 2025 presents a significant opportunity to champion policies that promote sustainable practices, particularly natural farming. By offering incentives, certification subsidies, and improved market access for organic growers, agri industry can drive a meaningful shift toward healthier and more environmentally conscious farming methods. A gradual transition from chemical-based conventional farming to natural farming is essential, and this shift must be supported through comprehensive policies and financial assistance

The agriculture sector in India faced several challenges in 2024, from unpredictable weather patterns and supply chain disruptions to growing sustainability pressures. However, there has also been significant progress, particularly in agri-tech innovations and the government’s commitment to farmer welfare. Looking ahead to Budget 2025, there’s a valuable opportunity to build on this momentum. For the agrochemical sector, the focus should be on incentivizing research into eco-friendly and latest new age solutions and PLI. Supporting small-scale farmers with better access to technologies and crop protection solutions will be crucial to increasing yields and reducing losses.

Encouraging urban farming and creating opportunities for people to grow fresh produce at home can also play a crucial role in enhancing food security, fostering self-sufficient and resilient communities. This initiative could additionally help mitigate air pollution in major cities. Furthermore, allocating dedicated budgetary resources for farmers’ education and skilling will be pivotal in equipping them with the knowledge and tools necessary for sustainable agriculture. Building smart villages—rather than focusing solely on smart cities—can foster a more inclusive rural development model, integrating technology, sustainability, and a strong sense of community.

One key expectation for budget 2025 is the increase in the Kisan Credit Card (KCC) limit to Rs 5 lakh. This change would provide farmers with much-needed liquidity to manage input costs and unforeseen expenses, particularly during critical phases like the sowing and harvesting periods. With the government’s existing interest subvention and repayment incentives, raising the credit limit would go a long way in enhancing farmers’ access to affordable credit, helping them bridge the gap between expenses and earnings. The industry also expects raising investment in agricultural R&D to at least 1 per cent of Agri-GDP that can build state-of-the-art technologies to not only enhance supply-chain efficiency and streamline SOPs of Post-harvest management but also help reduce food waste, improve farmers’ incomes, and ensure food security. Another pressing need is the introduction of a zero-premium crop insurance scheme, which would shield farmers from weather-related risks without burdening them with high upfront costs. This would offer a safety net for farmers who are vulnerable to climate uncertainties.

Approaching the Union Budget 2025, the agriculture sector is therefore optimistic about its potential to catalyze growth and transformation in India’s agriculture sector. Contributing over 15 per cent to the GDP and employing more than 45 per cent of the population, agriculture has grown at an average annual rate of 4.18 per cent over the past five years. The industry anticipates focused allocations toward driving technology adoption, enhancing productivity, and strengthening storage and supply chain infrastructure. These measures would not only empower farmers, the true ‘Annadatas,’ but also benefit agricultural machinery owners and OEMs. The Budget will prioritize improving infrastructure to support rural communities. Expanding access to digital tools and technologies will empower farmers to make data-driven decisions, enhancing productivity and food security. Additionally, increased budget allocation for R&D will drive the development of novel products and solutions, enabling organizations to better meet the evolving needs of the sector.

With India’s agriculture sector evolving rapidly, Budget