Dhan scheme to benefit 1.7 cr farmers

Coming after a prolonged farmers’ agitation in Punjab, the Union Budget frames agriculture as the first growth engine for the Indian economy with Finance Minister Nirmala Sitharaman announcing major interventions for the sector today.

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Describing agriculture as the first growth engine, Sitharaman announced plans to launch a new scheme — Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme — to benefit 1.7 crore farmers. This will be along the lines of the aspirational district programme which has yielded positive outcomes for development indicators in backward districts and blocks.

A new six-year Mission for Aatmanirbharta in Pulses with focus on tur, urad and masoor; a comprehensive Programme for Vegetables and Fruits; Makhana Board in Bihar; National Missions on High-Yielding Seeds and Cotton Productivity and enhanced Kisan Credit Card loan cap are among the highlights of the Budget interventions to spur agricultural productivity.

Announcing the government’s plans for agri sector, the FM said, “Motivated by the success of the Aspirational Districts Programme, our government will undertake a Prime Minister Dhan-Dhaanya Krishi Yojana in partnership with states. Through the convergence of existing schemes and specialised measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. It aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices, augment post-harvest storage at the panchayat and block level, improve irrigation facilities and facilitate availability of long-term and short-term credit. This programme is likely to help 1.7 crore farmers.”

Under the Self-reliance in Pulses scheme, the FM said that central agencies NAFED and NCCF would be ready to procure tur, urad and masoor as much as offered during the next four years from farmers who register with these agencies and enter into agreements.

Kisan Credit Cards, which facilitate short-term loans for 7.7 crore farmers, fishermen and dairy farmers, will see expansion of credit.

“The loan limit under the Modified Interest Subvention Scheme will be enhanced from Rs 3 lakh to 5 lakh for loans taken through the KCC,” said Sitharaman.

The Budget also speaks of a new Mission for Cotton Productivity — a move that could come to the aid of Punjab’s cotton growers with Malwa, once a hub, witnessing decline in cotton production in recent times. “For the benefit of lakhs of cotton-growing farmers, I am pleased to announce a Mission for Cotton Productivity. This five-year mission will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. The best science and technology support will be provided to farmers. Aligned with our integrated vision for the textile sector, this will help in increasing incomes of the farmers and ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector,” Sitharaman said.

Overall, the agriculture ministry witnessed a rise of 3.8 per cent in the Budget allocation over the previous year. As against Rs 1,22,528 crore allocation in 2024-25 Budget, the outlay has been raised to Rs 1,27,290 crore — a nominal 3.8 per cent rise.

Promoting pvt sector-driven R&D

In a push for innovation, the Union Budget has allocated Rs 20,000 crore to the Department of Science and Technology for a fund aimed at promoting private sector-driven research and development. This follows the establishment of a Rs 1 lakh crore R&D fund announced in July 2024, focusing on deep tech and sunrise sectors.

Ann Yojana gets Rs 2.03 lakh crore

The Budget has allocated Rs 2.03 lakh crore to the Pradhan Mantri Garib Kalyan Ann Yojana. Under the scheme, foodgrains are procured for distribution under the National Food Safety Act and for maintaining the buffer stock. The budgeted allocation will be utilised to procure paddy (775 LMT), wheat (265 LMT) and coarse grains (8.74 LMT).

Backing firms making solar panels

The government will support domestic industries in making solar panels, EV batteries, wind turbines and electrolyzers. To further support local production, basic customs duties have been removed on cobalt powder, lithium-ion battery scrap, lead, zinc and 12 additional critical minerals.

Leader speak

Has the yearning for development

The Budget has the fragrance of faith, the yearning for development... For a poverty-free India, we need poverty-free villages. The Finance Minister has announced the Rural Prosperity and Resilience Programme.

— Shivraj Singh Chouhan, Agriculture Minister

Recognises middle class contribution

The Budget recognises the energies and contribution of the middle class to nation-building. The focus on key engines of agriculture, MSME, investment and export will go a long way in building an atmanirbhar Bharat

— S Jaishankar, minister for external affairs

No funds for diversification

Punjabis were also looking forward to the allocation of funds to make diversification a reality by incentivising farmers to give up paddy cultivation. Sadly, the government failed to do this.

— Sukhbir Singh Badal, sad leader

Welfare measures for poor

The Budget is positive and welcome. Farmers will benefit from increasing the loan limit on Kisan Credit Card from Rs 3 lakh to Rs 5 lakh. Many steps have been taken in the interests of the poor, youth and farmers.

— Nitish Kumar, bihar chief minister

No demand met

Not a single demand we raised in the pre-Budget meeting was fulfilled. Karnataka received nothing. Despite farmers’ protests, the Budget did not even mention MSP, which is a great betrayal to the farming community.

— Siddaramaiah, Karnataka CM

QUICK NOTES

Leather sector stocks surge

Stocks in the footwear and leather sectors surged following the Union Budget’s announcement of a focused product scheme aimed at boosting productivity, quality, and competitiveness. The scheme is expected to create 22 lakh jobs, generate Rs 4 lakh crore in turnover, and drive exports exceeding Rs 1.1 lakh crore.

Cement makers anticipate rise in demand

Key cement manufacturers welcomed the Budget’s focus on large-scale housing and infrastructure projects, anticipating increased demand for construction materials and capacity expansion. The Cement Manufacturers’ Association emphasised the growth opportunities arising from heightened infrastructure investments across states, reinforcing their commitment to national progress.

Local TV production may get a boost

The government’s proposal to double customs duty on touchscreen display TVs and reduce levies on open cell manufacturing inputs is expected to boost local TV production. While large players will benefit, some small manufacturers have raised concerns about an uneven playing field. Additionally, income tax reliefs are expected to spur middle-class consumer spending in the sector.

Minority Affairs Ministry allocation up

The Ministry of Minority Affairs has been allocated Rs 3,350 crore in the Union Budget, marking an increase of Rs 166 crore over the previous year. The allocation reflects the government’s commitment to minority welfare and development initiatives.

Funds for special persons ‘insufficient’

Disability rights organisations have criticised the Union Budget for failing to adequately address the needs of India’s disabled population. Despite a modest increase in funding to Rs 1,275 crore for the Department of Empowerment of Persons with Disabilities, activists argue the allocation remains insufficient.