According to government sources, India intends to increase its agriculture budget by more than 15%, to almost $20 billion, in the fiscal year 2025-26. This is the greatest rise in six years, and it aims to raise rural earnings while keeping inflation under control.
The increased money will go towards producing high-yielding seed varieties, boosting storage infrastructure, and increasing the output of pulses, oilseeds, vegetables, and dairy products. The finance and agriculture ministries have yet to comment on the situation.
India, the world’s second-largest producer of rice, wheat, and sugar, continues to experience high food prices. While inflation in October 2024 exceeded 10% year on year, it has averaged more than 6% for the previous decade.
The 2019 budget would increase total allocations to agriculture and related industries to 1.75 trillion rupees, up from 1.52 trillion rupees this year. A share will also go towards research and development, which now receives 99.41 billion rupees.
Finance Minister Nirmala Sitharaman is scheduled to introduce the budget on February 1. The government also intends to increase pulse production to 30 million metric tonnes by 2030, enhance crop insurance, and provide subsidies to food processors.