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Informist, Monday, Nov. 10, 2025

 

By Priyasmita Dutta

NEW DELHI – Farmer associations and agricultural economists pitched for measures to boost pulses and oilseed production in the Budget for 2026-27 (Apr-Mar), a government official part of the meeting said. At a pre-Budget consultation with the finance minister on Monday, they also batted for higher credit to farmers, the official told Informist on condition of anonymity. 

 

Finance Minister Nirmala Sitharaman began her customary pre-Budget meeting Monday, meeting 14 representatives from farmer organisations and economists. The meeting was also attended by Economic Affairs Secretary Anuradha Thakur and Agriculture and Farmer Welfare Secretary Devesh Chaturvedi. The FY27 Budget is likely to be presented on Feb. 1.

 

The farm sector's pitch for steps to increase production of pulses and oilseeds is not new, as the sector has repeatedly requested support to boost production to lower India's import dependency. In the Budget for FY26, the finance minister announced a six-year "Mission for Aatmanirbharta in Pulses" with a special focus on tur, urad and masoor.

 

The mission seeks to expand the area under pulses by an additional 3.5 million hectares, targeting rice fallow areas and other diversifiable lands, while promoting intercropping and crop diversification. For this, the Cabinet has approved INR 114 billion over six years. Under the mission, the government will also distribute 8.8 million seed kits to farmers free of charge.

 

The government is also implementing the National Mission for Edible Oilseeds to achieve self-reliance in edible oils. Despite these measures, the farm sector associations argued that more needs to be done. 

 

The official cited above also said that a point raised by the majority of participants was the need for higher credit to farmers, given the current economic scenario. They sought more incentives and schemes, as well as easier access to credit, the official said.  

 

To boost credit to the rural sector through effective, hassle-free agriculture credit, the government has been setting annual targets for ground-level agriculture credit, with the National Bank for Agriculture and Rural Development playing a key role in promoting rural and agricultural credit. It is also a nodal agency for credit planning for priority sectors and for disbursements under various government schemes.

 

NABARD Chairman Shaji K.V. had told Informist in July that agriculture credit had surpassed the FY25 target of INR 28 trillion, reaching INR 29 trillion. For FY26, he had said that overall credit to the agriculture sector by commercial banks and regional rural banks is likely to be 10% higher at a record INR 32 trillion.

 

According to government data, over the past decade, agricultural credit disbursements grew at an average annual rate of more than 13%, reflecting increased financial support for the sector. In FY24, agricultural credit disbursement reached INR 25.50 trillion.

 

The government has also been modifying and improving schemes for farmers, including increasing credit limits under the Kisan Credit Card scheme to facilitate short-term loans for 77 million farmers, fishermen, and dairy farmers. In the Budget for FY26, the loan limit under the Modified Interest Subvention Scheme was also enhanced to INR 500,000 from INR 300,000 for loans taken through the KCC.

 

The finance ministry will hold more such pre-Budget consultations in the coming days with experts and industry bodies from different fields.  End

 

Edited by Saji George Titus

 

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