The Ministry of Agriculture and Farmers’ Welfare has two departments: (i) Department of Agriculture and Farmers’ Welfare, which implements policies related to farmer welfare and manages agricultural inputs, and (ii) Department of Agricultural Research and Education, which coordinates and promotes agricultural research and education.

This note examines the proposed budget allocation to the Ministry of Agriculture and Farmers’ Welfare and discusses some key issues in the agriculture sector.

Overview of Finances

Allocation in 2025-26

In 2025-26, Rs 1,37,757 crore has been allocated to the Ministry (2.7% of the union budget).[i]^,[ii]  The allocation towards the Ministry is estimated to decrease by 2.5% over the revised estimates of 2024-25.  According to the revised estimates of 2024-25, the expenditure of the Ministry has increased by 6.8% over the budget estimate.

Table 1: Allocation towards the Ministry of Agriculture and Farmers’ Welfare (in Rs crore)

	2023-24 Actuals	2024-25 RE	2025-26 BE	% change RE 2024-25 to BE 2025-26
Agriculture and Farmers’ Welfare	1,08,356	1,31,195	1,27,290	-3.0%
Agricultural Research and Education	9,791	10,156	10,466	3.1%
Total	1,18,147	1,41,352	1,37,757	-2.5%

Note: BE- Budget Estimates; RE- Revised Estimates.
Sources: Expenditure Budget, Ministry of Agriculture and Farmers Welfare, Union Budget 2025-26; PRS.

Key Expenditure Heads

Out of the total allocation to the Ministry, 92% is estimated to be spent by the Department of Agriculture and Farmers’ Welfare while the remaining is estimated to be spent by the Department of Agricultural Research and Education.

The Department of Agriculture and Farmers’ Welfare spends 77% of its budget on three major schemes: (i) PM-Kisan Samman Nidhi (direct cash transfer of Rs 6,000 per year per farmer family), (ii) Modified Interest Subvention Scheme, and (iii) Crop Insurance Scheme (see Table 2).

Table 2: Allocation towards key schemes under the Ministry (in Rs crore)

Scheme	2023-24 Actuals	2024-25 RE	2025-26 BE	% change RE 2024-25 to BE 2025-26
PM-KISAN	61,441	63,500	63,500	0%
MISS	14,252	22,600	22,600	0%
Crop Insurance Scheme	12,949	15,864	12,242	-23%
RKVY	5,693	6,000	8,500	42%
Krishionnati Yojana	5,736	7,106	8,000	13%
PM - AASHA	2,200	6,438	6,941	8%
Others	6,039	9,687	5,507	-43%
Total	1,08,356	1,31,195	1,27,290

Note: MISS is Modified Interest Subvention Scheme, RKVY is Rashtriya Krishi Vikas Yojana, and PM AASHA is PM Annadata Aay Sanrakshan Abhiyan 
Sources: Expenditure Budget, Ministry of Agriculture and Farmers Welfare, Union Budget 2025-26; PRS.

Key Announcements in Budget Speech 2025-26[iii] PM Dhan Dhaanya Krishi Yojana: The scheme will be launched in partnership with states and estimates to cover 1.7 crore farmers.  The scheme will target 100 districts with low productivity, moderate crop intensity, and below average credit access.  National Mission on High Yielding Seeds: The mission will focus on: (i) ensuring commercial availability of more than 100 seed varieties, (ii) development and propagation of climate and pest resilient high yielding seeds, and (iii) strengthening research on high yielding seed varieties.  Rs 100 crore has been allocated for 2025-26 under the mission. Enhanced credit limit under Kisan Credit Card: Loan limit under the Modified Interest Subvention Scheme will be increased from three lakh rupees to five lakh rupees. Focus on Horticulture: A comprehensive programme for the promotion of production, efficient supply, processing, and remunerative prices for fruits and vegetables will be launched.  The programme has been allocated Rs 500 crore for 2025-26.  It will target formation and participation of Farmer Producer Organisations and Cooperatives across states. Self-sufficiency in pulses: A new Mission for Aatmanirbharta in Pulses will be launched for a period of six years.  The Mission will aim at achieving self-sufficiency in pulses production through procurement of Tur, Urad, and Masoor.  An allocation of Rs 1,000 crore has been made for this scheme for 2025-26. A new urea plant will be established in Assam with an annual capacity of 12.7 lakh tonne.

Read more..