Agriculture Leaders Demand Sweeping Reforms in Union Budget 2025-26

Ahead of the Union Budget 2025-26, agriculture industry leaders urge modernization and policy support to bolster sector growth. They suggest subsidies, tax breaks, and infrastructure improvements to advance rice milling, food processing, and supply chains, emphasizing alignment with India’s sustainable energy and agricultural goals.

As the Union Budget 2025-26 nears, leaders from the agriculture processing and allied industries are pressing for transformative measures to significantly boost the sector's growth and sustainability. Their primary focus lies on modernizing processes, enhancing efficiencies, and backing the agricultural economy with strategic policy interventions.

Vasu Naren, Chairman and Managing Director of Sona Machinery, underscored the necessity of incentivizing modernization in the rice milling sector, a vital area for India's food security and rural economy. He called for subsidies and tax exemptions to foster the adoption of energy-efficient and automated machinery aimed at enhancing productivity and minimizing waste. Naren further highlighted the potential integration of rice milling by-products, such as rice husk, into ethanol production, aligning with India's ethanol blending aspirations.

In his remarks, he stated, "These measures will not only modernize the rice milling sector but also position it as a critical enabler of India's ethanol blending targets and sustainable energy transition. Policy support for rice milling and ethanol production will elevate rural livelihoods, strengthen the agricultural economy, and reinforce India's standing in global agriculture and biofuel markets." Meanwhile, Megha Pavan, Founder and CEO of Arkaa Cluster Private Limited, advocated for greater budgetary support to propel the food processing and nutraceuticals sectors forward, calling for tax reductions, increased subsidies for farmers, and investments in research for developing advanced processing technologies.

Pavan suggested that such initiatives would not only improve access to healthier food options but also establish India as a leader in sustainable and nutritional solutions. She stated, "We anticipate that the budget will prioritize the advancement of agriculture and agri-tech sectors, with particular emphasis on enhancing the processing and innovation capabilities of the food processing industry."

Akshat Gupta, Practice Leader of Food & Agriculture at Praxis Global Alliance, emphasized the importance of overcoming critical challenges facing the agricultural sector. He advocated for a higher allocation than the current Rs 1.52 lakh crore to improve cold storage, warehousing, and supply chains, aimed at reducing post-harvest losses.

Gupta also proposed doubling PM-KISAN installments to Rs 12,000, setting standardized agricultural loan interest rates at 3-5 percent, and boosting NABARD funding to support small farmers. He stressed modernizing farming through the Digital Agriculture Mission and bolstering Farmer Producer Organizations (FPOs) with training, credit access, and improved storage facilities.

He remarked, "Accelerating the Digital Agriculture Mission, with robust Agri-databases and frameworks, can modernize farming. Improved mandi infrastructure, MSP reforms, and support for crop-specific clusters with advisory services will enhance productivity." Industry leaders concur that these strategies will not only enhance the productivity and profitability of the agriculture sector but also secure a more sustainable and resilient future for India's farmers. (ANI)

(With inputs from agencies.)