The Union Finance Minister in her straight eighth Union Budget, has rightly reiterated that agriculture is the first growth engine of the economy and the Budget is a celebration of how India can become the ‘food basket of the the world’. Each of her proposals is aimed at strengthening the farm sector and has short, medium, and long-term objectives and goals that will benefit farmers, consumers, and the entire nation.

A key, immediate impact of this Budget is the increase in disposable income for the middle class. As middle class consumers enhance their expenditure on consumption, particularly in the fast-moving consumer goods (FMCG) sector, companies within this segment — previously strained by low consumption levels — will be better positioned to extend benefits to farmers.

No doubt, it is a visionary budget that looks at strengthening the federal structure of India, which is critical for agriculture. The proposed ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states will certainly enhance agricultural productivity and inter-state cooperation on factors impacting the farm sector.

It will motivate the adoption of crop diversification and sustainable agriculture practices, which are essential, considering the dramatic climate changes, consumption patterns, and market demands. Farmers have been struggling with transportation and storage losses, resulting in lower prices for their produce. By aiming to augment post-harvest storage at the panchayat and block level, the Finance Minister has created an opportunity for entrepreneurs to explore the backend of the agriculture sector, which required immediate attention.

The government is also going to make long-term and short-term credit available to the farmers under the programme, which will directly benefit farmers and those helping build the backend. The latest addition of ₹10,000 crore to fund of funds can help startups in the agriculture sector build hi-tech storage facilities and transportation systems.

Improved irrigation facilities will help farmers in multiple cropping and crop rotation. The finance minister aims to benefit 1.7 crore farmers through this programme. However, it has the potential for a ripple effect and can benefit many indirectly associated with the agri sector.

The focus on making India self-reliant on pulses will help with price fluctuations and reduce imports. The launch of a six-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor is a step in the right direction. Along with it, the proposed National Mission on High Yielding Seeds aims to strengthen the research ecosystem, targeted development and propagation of seeds with high yield, pest resistance and climate resilience, and commercial availability of more than 100 seed varieties released since July 2024.

The combined efforts of the proposed programme will reduce Indian farmers’ dependence on pesticides and also ensure better yield, resulting in higher income.The Finance Minister has responded positively to the changing consumption pattern of the major population, which is increasingly becoming aware of their nutritional needs. She is correct in stating that it is a sign of a society becoming healthier.

It has a direct correlation to the increase in the consumption of vegetables, fruits, and shree-anna or millets. The population, with rising income levels, is increasingly adopting healthy food habits and products.

The Finance Minister’s support for Food Processing in the Budget 2025 is highly commendable. The decision to establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar will provide a strong fillip to food processing activities in the entire Eastern region. The private sector should also be encouraged to set up such NIFTs across the country.

(The views expressed are personal)