Summary

Introduction

On March 19, 2025, the Union Cabinet took two key decisions to further the development of agriculture, dairying and animal husbandry in India. Agriculture, animal husbandry, and dairying are the cornerstone of India's economy. These sectors play a crucial role in ensuring rural employment and economic stability.

The Union Cabinet approved the Revised National Program for Dairy Development (NPDD), a Central Sector Scheme, with an additional budget of ₹1,000 crore, bringing the total to ₹2,790 crore for the 15th Finance Commission period (2021-22 to 2025-26).

Key Objectives of the Revised NPDD:

• Improved milk procurement, processing capacity, and quality control.
• Enhanced market access for farmers and better pricing through value addition.
• Strengthening of the dairy supply chain to increase rural income and development.

Components of the Revised NPDD:

1. Component A: Focuses on improving dairy infrastructure.
2. Component B: Dairying through Cooperatives (DTC) in partnership with Japan International Cooperation Agency (JICA).

Expected Outcomes of Revised NPDD:

• Establishment of 10,000 new Dairy Cooperative Societies.
• Additional 3.2 lakh employment opportunities, 70% benefiting women.

The Union Cabinet has also approved the Revised Rashtriya Gokul Mission (RGM) to boost the livestock sector, with an additional outlay of ₹1,000 crore, bringing the total budget to ₹3,400 crore for the 15th Finance Commission period (2021-22 to 2025-26).

Key Additions to the Revised RGM:

1. Heifer Rearing Centres: One-time assistance of 35% of capital cost for setting up 30 housing facilities for 15,000 heifers.
2. Support for High Genetic Merit (HGM) Heifers: 3% interest subvention on loans taken by farmers to purchase HGM IVF heifers from milk unions/financial institutions.

Ongoing Activities under RGM:

• Strengthening of semen stations and Artificial Insemination (AI) network.
• Bull production and breed improvement using sex-sorted semen.
• Skill development and farmer awareness programs.
• Establishment of Centres of Excellence and strengthening of Central Cattle Breeding Farms.

Expected Outcomes of Revised RGM:

• Increased incomes for 8.5 crore farmers engaged in dairying.
• Scientific conservation of indigenous bovine breeds.

India is the world's largest producer of milk and the second-largest producer of fruits and vegetables. With a rising global demand for organic produce, value-added dairy products, and sustainable farming practices, the government has placed renewed emphasis on enhancing productivity, infrastructure, and market access for farmers. In the past six months, the Union Government has introduced key policy decisions aimed at modernizing these sectors. Through targeted investments, regulatory support, and infrastructure development, the government seeks to improve farmer incomes, ensure disease control in livestock, and bolster cooperative movements to benefit small and marginal farmers. A crucial component of this vision is the Union Budget 2024-25, which has made substantial allocations to agriculture, animal health, and rural development.

Agriculture, Animal Husbandry, and Dairying Provisions in Union Budget 2024-25

The Union Budget 2025-26 has emphasized agriculture as the foremost engine of India's development, focusing on improving productivity, farmer incomes, rural infrastructure, and self-sufficiency in key commodities. The provisions also extend to animal husbandry, dairying, and fisheries, ensuring holistic growth in the primary sector.

1. Agriculture Sector Provisions

1.1 Prime Minister Dhan-Dhaanya Krishi Yojana

• A new scheme targeting 100 low-productivity districts.
• Focus on enhancing agricultural productivity, crop diversification, sustainable practices, irrigation, and post-harvest storage.
• Likely to benefit 1.7 crore farmers.

1.2 Rural Prosperity and Resilience Programme

• A multi-sectoral initiative to address underemployment in agriculture.
• Focus on skilling, investment, and technology-driven transformation.
• Phase-1 to cover 100 agricultural districts.

1.3 Mission for Aatmanirbharta in Pulses

• A six-year mission with a focus on Tur, Urad, and Masoor.
• Development of climate-resilient seeds and protein enhancement.
• Assurance of remunerative prices through procurement by NAFED and NCCF for four years.

1.4 Comprehensive Programme for Vegetables and Fruits

• Promotion of vegetable and fruit production with efficient supply chains.
• Focus on value addition, processing, and ensuring better market prices.
• Implementation in partnership with states and farmer producer organizations.

1.5 National Mission on High Yielding Seeds

• Strengthening research for high-yield, pest-resistant, and climate-resilient seeds.
• Commercial availability of over 100 seed varieties released since July 2024.

1.6 Cotton Productivity Mission

• A five-year mission to improve cotton yield and sustainability.
• Promotion of extra-long staple cotton to benefit cotton-growing farmers.
• Alignment with the 5F vision for textile sector growth.

1.7 Kisan Credit Card (KCC) Loan Limit Enhancement

• The loan limit under the Modified Interest Subvention Scheme raised from ₹3 lakh to ₹5 lakh.
• Expected to benefit 7.7 crore farmers, fishermen, and dairy farmers.

1.8 Urea Plant in Assam

• A new urea plant with an annual capacity of 12.7 lakh metric tons at Namrup, Assam.
• Expected to enhance self-sufficiency in urea production.

2. Animal Husbandry and Dairying

2.1 Makhana Board in Bihar

• Establishment of a dedicated board to support makhana production, processing, and marketing.
• Organization of makhana farmers into Farmer Producer Organizations (FPOs).

2.2 Fisheries Development Framework

• Special focus on Andaman & Nicobar and Lakshadweep Islands.
• Sustainable harnessing of fisheries from the Exclusive Economic Zone and High Seas.
• Expected to boost marine sector potential and increase exports.

3. Credit and Financial Inclusion

3.1 Grameen Credit Score

• Public Sector Banks to develop a framework for SHG members and rural credit needs.

3.2 Expansion of Credit for Micro Enterprises

• Introduction of customized credit cards with a ₹5 lakh limit for micro-enterprises registered on the Udyam portal.
• 10 lakh cards to be issued in the first year.

4. Research and Infrastructure Development

4.1 Gene Bank for Crops Germplasm

• A second gene bank with 10 lakh germplasm lines for future food security.

4.2 Research and Development in Agriculture

• Enhanced support for private-sector-driven R&D.

The Union Budget 2025-26 provisions for agriculture, animal husbandry, and dairying reflect the government's commitment to boosting agricultural productivity, ensuring financial stability for farmers, and strengthening allied sectors.

Overview of Cabinet Decisions Since October 2024

1. Continuation of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS)

On January 1, 2025, the Union Cabinet approved continuation of the Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of Rs.69,515.71 crore from 2021-22 to 2025-26. The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country.

In addition to the same, for large scale technology infusion in implementation of the scheme leading to increasing transparency and claim calculation and settlement, the Union Cabinet has also approved creation of Fund for Innovation and Technology (FIAT) with a corpus of Rs.824.77 crore.

2. Extension of One-time Special Package on Di-Ammonium Phosphate (DAP)

On January 1, 2025, the Union Cabinet approved the proposal of the Department of Fertilizers for extension of One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy @ Rs 3,500 per MT for the period from 01.01.2025 till further orders to ensure sustainable availability of DAP at affordable prices to the farmers. The tentative budgetary requirement for above would be approximately up to Rs. 3,850 crore.

3. Increase in Minimum Support Price (MSP) for Copra for 2025 season

The Cabinet Committee on Economic Affairs, on December 20, 2024, has given its approval for the Minimum Support Price (MSP) for copra for 2025 season. The government has increased MSP for milling copra and ball copra from Rs. 5250 per quintal and Rs. 5500 per quintal for the marketing season 2014 to Rs. 11582 per quintal and Rs. 12100 per quintal for the marketing season 2025, registering a growth of 121% and 120%, respectively. A higher MSP will not only ensure better remunerative returns to the coconut growers but also incentivize farmers to expand copra production to meet the growing demand for coconut products both domestically and internationally.

4. Launch of National Mission on Natural Farming

The Union Cabinet, on November 25, 2024, approved the launching of the National Mission on Natural Farming (NMNF) as a standalone Centrally Sponsored Scheme under the Ministry of Agriculture & Farmers' Welfare. The scheme has a total outlay of Rs.2481 crore (Government of India share – Rs.1584 crore; State share – Rs.897 crore) till the 15th Finance Commission (2025-26).

• National Mission on Natural Farming (NMNF) promotes NF to ensure safe, nutritious food and reduce farmers' dependency on external inputs. It aims to enhance soil health, biodiversity, climate resilience, and sustainable agriculture.
• Natural Farming (NF) is a chemical-free farming method based on traditional knowledge, local agro-ecological principles, and diversified cropping systems.
• NF reduces input costs, soil degradation, and health risks from fertilizers and pesticides, ensuring nutritious food and climate resilience.

5. Launch of PM Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY)

On October 3, 2024, the Union Cabinet approved the proposal of the Department of Agriculture & Farmers Welfare (DA&FW) for rationalization of all Centrally Sponsored Schemes (CSS) operating under Ministry of Agriculture and Farmer’s into two-umbrella Schemes viz. Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY), and Krishonnati Yojana (KY).  

PM-RKVY will promote sustainable agriculture, while KY will address food security & agricultural self-sufficiency. The PM-RKVY and KY are being implemented with total proposed expenditure of Rs.1,01,321.61 crore. These Schemes are implemented through the State Governments. Out of the total proposed expenditure of Rs.1,01,321.61 crore the projected expenditure towards central share of DA&FW is Rs.69,088.98 crore and states share is Rs.32,232.63 crore. This includes Rs.57,074.72 crore for RKVY and Rs.44,246.89 crore for KY.

6. Approval of National Mission on Edible Oils – Oilseeds

On October 3, 2024, the Union Cabinet approved the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), a landmark initiative aimed at boosting domestic oilseed production and achieving self-reliance in edible oils. The Mission will be implemented over a seven-year period, from 2024-25 to 2030-31, with a financial outlay of Rs 10,103 crore.

The mission aims to increase primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Together with NMEO-OP (Oil Palm), the Mission targets to increase domestic edible oil production to 25.45 million tonnes by 2030-31 meeting around 72% of our projected domestic requirement.

Welfare Schemes for Agriculture, Dairying and Animal Husbandry by the Indian Government

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Launch of PM-KISAN in 2019 an income support scheme providing Rs. 6000 per year in 3 equal instalments. So far, more than Rs. 3.46 lakh crore has been disbursed to over 11 crore farmers through 18 instalments. On February 24, 2025, the government released the 19^th instalment of the PM-KISAN scheme. Over 9.8 crore farmers including 2.41 crore female farmers across the country will be benefitted through the 19^th instalment release, receiving direct financial assistance exceeding ₹22,000 crore through Direct Benefit Transfer (DBT) without involvement of any middlemen.

• Pradhan Mantri Kisan Maandhan Yojana: PMKMY is a central sector scheme, is a voluntary and contributory pension scheme for the entry age group of 18 to 40 years with a provision of Rs. 3000/- monthly pension on attaining the age of 60 years, subject to exclusion criteria. Since the inception of the scheme, over 24.67 lacs small and marginal farmers have joined the PMKMY scheme.
• Pradhan Mantri Fasal Bima Yojana: PMFBY was launched in 2016 addressing problems of high premium rates for farmers and reduction in sum insured due to capping. In past 8 Years of implementation. In past 8 Years of PMFBY implementation, 63.11 crore farmer applications have been enrolled and over 18.52 crore (Provisional) farmer applicants have received claims of over Rs. 1,65,149 crore. During this period nearly Rs. 32,482 crore were paid by farmers as their share of premium against which claims over Rs. 1,65,149 crore (Provisional) have been paid to them. Thus, for every Rs. 100 of premium paid by farmers, they have received about Rs. 508 as claims.

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• National Livestock Mission (NLM): The focus of the scheme is towards employment generation, entrepreneurship development; increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool. An outlay of Rs. 324 crores have been allocated during the year 2024-25 for this mission.
• Animal Husbandry Infrastructure Development Fund (AHIDF): The scheme envisaged for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs), and Section 8 companies to establish dairy processing and value addition infrastructure, meat processing and value addition infrastructure, animal feed plant, breed improvement technology and breed multiplications farms, veterinary drugs and vaccine infrastructure and waste to wealth management. Further, the Dairy Infrastructure Development Fund (DIDF) has been subsumed in the AHIDF and revised outlay is now Rs. 29610 crore.
• National Animal Disease Control Programme (NADCP): Launched in 2019, the program is the largest of its kind globally, targeting the eradication of FMD and Brucellosis by 2030. Over 99.71 crore vaccinations against Foot and Mouth Disease (FMD) in cattle and buffaloes, benefitting 7.18 crore farmers have been made so far.

Conclusion

The government’s recent decisions and budgetary provisions reflect a strong push towards modernization, infrastructure development, and sustainability in agriculture, animal husbandry, and dairying. The focus on disease control, cooperative strengthening, and technological innovation will contribute to improving productivity and farmers’ incomes, ensuring the long-term growth of these vital sectors.

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Santosh Kumar | Ritu Kataria | Rishita Aggarwal