Union Budget 2025-26: Major Initiatives Announced to Boost Agricultural Growth and Rural Prosperity

New Delhi: The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman in Parliament today, outlined several key initiatives aimed at strengthening India’s agricultural sector and rural economy. Recognizing agriculture as one of the four key engines of development, alongside MSMEs, investment, and exports, the government introduced new programs to enhance productivity, resilience, and farmer welfare.

A major highlight of the budget is the Prime Minister Dhan-Dhaanya Krishi Yojana, which aims to boost agricultural productivity in 100 districts with low yields, moderate crop intensity, and below-average credit access. This initiative, undertaken in partnership with state governments, will integrate existing schemes with specialized interventions to improve irrigation, promote sustainable farming, increase crop diversification, and expand post-harvest storage at the panchayat and block levels. The program is expected to benefit 1.7 crore farmers across the country.

In a broader push to uplift rural India, the government will launch the Rural Prosperity and Resilience Program, focusing on generating employment opportunities in agriculture through skilling, technology, and investment. This initiative is designed to empower rural women, young farmers, small and marginal farmers, and landless families by fostering entrepreneurship, modernizing agriculture, and expanding warehousing facilities. In its first phase, the program will cover 100 developing agri-districts and will incorporate global best practices with technical and financial support from multilateral development banks.

To further strengthen India’s food security, the government announced a six-year Mission for Aatmanirbharta in Pulses, focusing on Tur, Urad, and Masoor. This mission aims to develop climate-resilient seeds, enhance protein content, increase productivity, improve post-harvest storage, and ensure remunerative prices for farmers. To stabilize the market, central agencies NAFED and NCCF will be ready to procure unlimited quantities of these pulses for the next four years from registered farmers who enter into agreements.

Recognizing the growing demand for nutrient-rich foods, the government will also roll out a Comprehensive Program for Vegetables & Fruits in collaboration with state governments. This initiative will strengthen production, supply chains, processing facilities, and price stability, ensuring that farmers receive fair prices while consumers benefit from reliable access to fresh produce. Additionally, institutional mechanisms will be established to support farmer producer organizations (FPOs) and cooperatives in managing this initiative effectively.