India To Boost Agricultural Spending By 15%, Targeting USD 20 Bn In Budget 2025

ENA Sectors 2025-01-24 13:40:09 New Delhi, Jan 24 (KNN) India is planning a substantial 15 percent increase in agricultural sector spending, targeting approximately USD 20 billion in the upcoming budget, marking the largest investment increment in six years, according to two government sources. The additional funding aims to enhance rural incomes and mitigate inflationary pressures in the agricultural domain. The proposed budget allocation will focus on developing high-yielding seed varieties, improving storage and supply infrastructure, and increasing production of pulse crops, oilseeds, vegetables, and dairy products. Total agricultural and allied activities allocations are expected to rise to 1.75 trillion rupees in the 2025/26 fiscal year, up from 1.52 trillion rupees in the current period. As the world's second-largest producer of rice, wheat, and sugar, India has been addressing high food prices that surged past 10 percent year-on-year in October 2024. The government has previously implemented export restrictions and duty-free import policies to stabilise prices. Finance Minister Nirmala Sitharaman's budget, to be presented on February 1, will prioritise agricultural development with ambitious goals. These include increasing farm exports to USD 80 billion by 2030, up from the current USD 50 billion, and boosting pulse production to 30 million metric tons by 2030. The proposed budget also includes expanding subsidised farm loans, increasing crop insurance coverage, and providing 109 billion rupees in incentives for food processing firms. The government plans significant investments in the fisheries sector, totaling USD 9 billion over the next five years. Despite these initiatives, independent farm policy analyst Devinder Sharma cautions that the proposals may not fully address deeper structural challenges in agriculture, such as low productivity and stagnant farm incomes. He suggests increased direct transfers to farmers and improved crop procurement to stabilise incomes and ensure fair consumer prices. Agriculture remains a critical sector in India, employing nearly 45 percent of the workforce and contributing approximately 15 percent to the USD 3.5 trillion economy. (KNN Bureau) 40771 https://knnindia.co.in/news/newsdetails/sectors/india-to-boost-agricultural-spending-by-15-targeting-usd-20-bn-in-budget-2025 2025-01-24 13:40:09 knnindia.co.in India To Boost Agricultural Spending By 15%, Targeting USD 20 Bn In Budget 2025