Budget 2025: A boost for farmers, but GST on inputs needs revision – Dr. R.G. Agarwal

The Union Budget 2025 has introduced a series of significant agricultural reforms aimed at strengthening India’s farming sector, ensuring price stability, and boosting productivity. With initiatives like the Dhan Dhaniya Krishi Yojana, Edible Oil Mission, and the National Mission on High-Yielding Seeds, the government has reinforced its commitment to making India a global agricultural powerhouse.

Dr. R.G. Agarwal, Chairman Emeritus, Dhanuka Agritech Limited, commended the government’s vision, stating, ″We highly appreciate the government’s initiative to make India the food basket of the world. The Dhan Dhaniya Krishi Yojana, benefiting 1.7 crore farmers across 100 low-productivity districts, is a monumental step towards rural prosperity.″

Major Boost for Farmers and Agricultural Growth

One of the key highlights of the budget is the Edible Oil Mission, which enables farmers to enter into procurement agreements with agencies like NAFED and NCCF. This move is expected to ensure price security, increase domestic oilseed production, and strengthen India’s export capacity. Dr. Agarwal praised the initiative, noting, ″Providing farmers with procurement agreements will encourage more oilseed cultivation, reducing our import dependency and boosting exports.″

The budget also focuses on vegetable production, aligning it with rising domestic consumption, ensuring better supply chain management, and improving farmers’ income.

Empowering Farmers Through Financial Support & Infrastructure Development

A significant announcement in the budget is the increase in Kisan Credit Card (KCC) loans from ₹3 lakh to ₹5 lakh, benefiting 7.7 crore farmers. Additionally, the government has introduced measures for post-harvest storage facilities, ensuring better preservation of crops and reducing wastage.

Dr. Agarwal applauded these steps, emphasizing their importance in improving agricultural productivity: ″This budget is a significant step towards a stronger, Make in India agriculture sector. The increased KCC loan limit and storage infrastructure development will provide much-needed financial and logistical support to farmers.″

Another notable move is the creation of the Makhana Board in Bihar, recognizing the region’s potential in Makhana production and ensuring better market access for farmers.

Atmanirbharta in Pulses: A Game-Changing Mission

The government has also introduced a six-year mission for ‘Atmanirbharta’ in pulses, including procurement agreements for toor, urad, and masoor, ensuring better price realization for farmers. This initiative is expected to boost domestic production and reduce India’s reliance on pulse imports.

″The announcement of a long-term mission for pulses is a testament to the government’s commitment to making the agricultural sector stronger and farmers more prosperous,″ Dr. Agarwal remarked.

A Call for GST Reforms in Agriculture

While the budget presents several forward-looking reforms, Dr. Agarwal highlighted one crucial area that needs reconsideration – the GST on agricultural inputs. He urged the government to revisit this taxation structure, stating, ″While many positive initiatives have been introduced, we request the government to reduce GST on essential agricultural inputs to 5%. This would significantly ease the cost burden on farmers and encourage higher adoption of modern farming techniques.″

A Step Towards Aatmanirbhar Krishi

The 2025 Budget has laid out a strong roadmap for self-reliant agriculture, combining financial empowerment, infrastructure development, and policy-driven growth. As India moves towards achieving its vision of a sustainable and prosperous agricultural sector, these initiatives are expected to play a pivotal role.

Expressing gratitude, Dr. Agarwal concluded, ″We thank the government for these forward-looking decisions that will spur agricultural development and accelerate India’s path towards Aatmanirbhar Krishi.″