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Transforming India's Agricultural and Dairy Sectors – Recent Policy Decisions and Budgetary Provisions

Last Updated

22nd March, 2025

Date Published

20th March, 2025

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An abstract yet realistic hero image for a blog post on 'India's Agricultural and Dairy Sectors'.

Context:

This document, released by the Press Information Bureau, Government of India, on March 20, 2025, under the Ministry of Information and Broadcasting, outlines recent policy decisions and budgetary provisions aimed at modernizing agriculture, dairying, and animal husbandry. Highlighting key schemes approved by the Union Cabinet and provisions from the Union Budget 2025-26, it emphasizes enhancing productivity, farmer incomes, rural employment, and sustainability. The focus is on infrastructure development, technological innovation, and self-reliance in critical commodities like edible oils and pulses.

Crisp Notes:

Introduction

  • Significance: Agriculture, animal husbandry, and dairying are vital for India’s economy, supporting rural employment and stability.
  • Key Decisions (March 19, 2025): Union Cabinet approved revised National Program for Dairy Development (NPDD) and Rashtriya Gokul Mission (RGM) with additional funding of ₹1,000 crore each.
  • India’s Position: World’s largest milk producer and second-largest producer of fruits and vegetables, with rising global demand for organic and value-added products.

Key Schemes in Detail

  1. Revised National Program for Dairy Development (NPDD)
    • Type: Central Sector Scheme.
    • Budget: ₹2,790 crore (2021-22 to 2025-26), with additional ₹1,000 crore.
    • Objectives:
      • Improve milk procurement, processing capacity, and quality control.
      • Enhance market access and pricing through value addition.
      • Strengthen dairy supply chain for rural income growth.
    • Components:
      • Component A: Enhance dairy infrastructure.
      • Component B: Dairying through Cooperatives (DTC) with Japan International Cooperation Agency (JICA).
    • Outcomes:
      • Establish 10,000 new Dairy Cooperative Societies.
      • Create 3.2 lakh jobs, 70% benefiting women.
  3. Revised Rashtriya Gokul Mission (RGM)
    • Budget: ₹3,400 crore (2021-22 to 2025-26), with additional ₹1,000 crore.
    • Objectives: Boost livestock sector and conserve indigenous bovine breeds.
    • New Additions:
      • Heifer Rearing Centres: 35% capital cost assistance for 30 facilities housing 15,000 heifers.
      • High Genetic Merit (HGM) Heifers: 3% interest subvention on loans for purchasing HGM IVF heifers.
    • Ongoing Activities:
      • Strengthen semen stations and Artificial Insemination (AI) network.
      • Bull production and breed improvement via sex-sorted semen.
      • Skill development and farmer awareness.
      • Establish Centres of Excellence and Central Cattle Breeding Farms.
    • Outcomes: Increase incomes for 8.5 crore dairy farmers.
  5. National Mission on Natural Farming (NMNF)
    • Approval: November 25, 2024.
    • Type: Centrally Sponsored Scheme.
    • Budget: ₹2,481 crore (Central: ₹1,584 crore; State: ₹897 crore) till 2025-26.
    • Objectives:
      • Promote chemical-free farming based on traditional knowledge and agro-ecological principles.
      • Reduce input costs, soil degradation, and health risks.
      • Enhance soil health, biodiversity, and climate resilience.
    • Features: Focus on safe, nutritious food and reduced dependency on external inputs.
  7. Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) & Krishonnati Yojana (KY)
    • Approval: October 3, 2024.
    • Purpose: Rationalize all Centrally Sponsored Schemes under Ministry of Agriculture into two umbrella schemes.
    • Budget: ₹1,01,321.61 crore (Central: ₹69,088.98 crore; State: ₹32,232.63 crore).
      • PM-RKVY: ₹57,074.72 crore (sustainable agriculture).
      • KY: ₹44,246.89 crore (food security and self-sufficiency).
    • Implementation: Through state governments.
  9. National Mission on Edible Oils - Oilseeds (NMEO-Oilseeds)
    • Approval: October 3, 2024.
    • Budget: ₹10,103 crore (2024-25 to 2030-31).
    • Objective: Boost oilseed production for self-reliance in edible oils.
    • Targets:
      • Increase oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31.
      • Achieve 25.45 million tonnes of edible oil production by 2030-31 (72% of domestic demand with NMEO-Oil Palm).
  11. Pradhan Mantri Fasal Bima Yojana (PMFBY) & Weather Based Crop Insurance Scheme
    • Extension: Approved on January 1, 2025, till 2025-26.
    • Achievements (8 years):
      • Enrolled 63.11 crore farmer applications.
      • Paid ₹1,65,149 crore in claims against ₹32,482 crore premium (₹508 claims per ₹100 premium).
    • Fund for Innovation and Technology (FIAT): ₹824.77 crore for tech infusion, transparency, and claim settlement.
  13. One-time Special Package on Di-Ammonium Phosphate (DAP)
    • Extension: Approved on January 1, 2025, beyond Nutrient Based Subsidy (NBS).
    • Subsidy: ₹3,500 per MT.
    • Budget: Up to ₹3,850 crore.
    • Purpose: Ensure affordable DAP availability for farmers.
  15. National Livestock Mission (NLM)
    • Budget (2024-25): ₹324 crore.
    • Focus: Employment generation, entrepreneurship, and increased productivity (meat, goat milk, egg, wool).
  17. Animal Husbandry Infrastructure Development Fund (AHIDF)
    • Revised Outlay: ₹29,610 crore (includes Dairy Infrastructure Development Fund).
    • Purpose: Incentivize investments in dairy/meat processing, animal feed plants, breed improvement, and waste management.
  19. National Animal Disease Control Programme (NADCP)
    • Launch: 2019.
    • Target: Eradicate Foot and Mouth Disease (FMD) and Brucellosis by 2030.
    • Progress: 99.71 crore FMD vaccinations, benefiting 7.18 crore farmers.

Union Budget 2025-26 Provisions

  • Focus: Agriculture as the engine of development, targeting productivity, farmer incomes, and self-sufficiency.
  • Key Initiatives:
    1. Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts for crop diversification and irrigation (1.7 crore farmers).
    2. Rural Prosperity and Resilience Programme: Skilling and tech-driven transformation in 100 districts.
    3. Mission for Aatmanirbharta in Pulses: 6-year plan for Tur, Urad, Masoor with climate-resilient seeds.
    4. Comprehensive Programme for Vegetables and Fruits: Focus on value addition and supply chains.
    5. National Mission on High Yielding Seeds: Research on pest-resistant, climate-resilient seeds (100+ varieties released since July 2024).
    6. Cotton Productivity Mission: 5-year plan for extra-long staple cotton.
  • MSP for Copra (2025 Season):
    • Milling Copra: ₹11,582/quintal (121% growth since 2014).
    • Ball Copra: ₹12,100/quintal (120% growth since 2014).

Welfare Schemes

  1. PM-KISAN:
    • Launched 2019, ₹6,000/year to farmers.
    • Disbursed ₹3.46 lakh crore to 11 crore farmers (18 instalments).
    • 19th instalment (Feb 24, 2025): ₹22,000 crore to 9.8 crore farmers.
  3. PM Kisan Maandhan Yojana: Pension of ₹3,000/month for small/marginal farmers; 24.67 lakh enrolled.

Conclusion

  • Recent policies and budgetary provisions aim to modernize agriculture and dairy sectors through infrastructure, technology, and sustainability, ensuring higher farmer incomes and rural development.