Praising that the announcements made for the farmers in the Budget 2025-26 tabled in the Parliament on the very first day of February by the Union Minister for Finance, the Prime Minister Narender Modi said that this budget will lay the foundation for a new revolution in the agricultural sector and the entire rural economy. PM Modi highlighted that under the PM Dhan-Dhanya Krishi Yojana, irrigation and infrastructure development will take place in 100 districts. He emphasized that increasing the limit of the Kisan Credit Card from ₹3 lakh to ₹5 lakh will provide greater assistance to farmers.

Union Finance Minister Nirmala Sitharaman said that this program aims to enhance agricultural productivity; adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at the panchayat and block level; improve irrigation facilities and facilitate availability of long-term and short-term credit. This program is likely to help 1.7 crore farmers.

Announcing the ‘Mission for Cotton Productivity’, Smt. Sitharaman highlighted that the five-year mission will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. She said the mission will benefit lakhs of cotton growing farmers as the best of science & technology support will be provided to farmers.

Here arises the question, if PM Modi’s statement – ‘This budget will lay the foundation for a new revolution in the agricultural sector and the entire rural economy’, is the indicative of the farmers’ welfare budget , then why the farmers under the banner of Samyukta Kisan Morcha (Non-Political) and Kisan Majdoor Morcha (KMM) are  agitating even after the budget at Punjab-Haryana border at two places since February 13, 2024 and  the farmer leader Dallewal is still continuing his  hunger strike started from November 26 ? Shouldn’t they step back after this so much miraculous budget?

What the Farmers’ leaders say?

Samyukta Kisan Morcha (SKM) leader and National Vice-President of All India Kisan Sabha (AIKS), Dr Inderjeet Singh says that the union budget has totally belied the hopes and expectations of farmers as the announcements pertaining to the farm sector are disappointing.

 “Farmers were expecting reduction in input cost, debt relief by way of loan waiver, MSP legal guarantee on the basis of C-2+50%, farm implements exempted from GST and withdrawal of National Policy Framework on Agricultural Marketing etc. out of which none has materialized.”

Dr. Singh adds that there is a decrease in allocations on food security, irrigation, MGNREGA, PM Fasal Bima Yojana etc. Kisan Samman Nidhi amount has also not been enhanced.

Reacting over the enhancement in credit limit, Dr. Inderjeet states that as far as increase in amount of loan on credit card is concerned it is itself and admission of the extent of indebtedness. Apart from this there is no provision for a large number of tenant farmers who cultivate lands on lease and have no supportive mechanisms.

Commenting on ‘Mission for Cotton Productivity’, announced in the budget, Dr. Inderjeet Singh says, “Purported emphasis on crop diversification by giving emphasis to cotton and pulses is a hoax as area under cotton cultivation is depleting fast due to spurious seeds sold by private companies that is prone to insect infestation. Similarly pulse producing farmers are not being given MSP and they had to make distress sale of Moong and other pulses.”

National spokesperson of Bhartiya Kisan Union, Chaudhary Rakesh Tikait said that there is nothing for villages, poor, farmers, tribals in the budget released by the central government of the country. They are seen in the figures of the government but are miles away from the basic structure.

Tikait states, “The government is forcing the farmers to take loans but not paying the price of crops. When this loan keeps on increasing, the land will be handed over to the corporates. From today’s budget, it appears that the farmers of the country who are demanding MSP guarantee law and C2 + 50 formula have got only loans in the budget. This is the budget of corporate capitalists. This budget is just a sham for farmers and laborers. The farmers of the country reject this budget outright. The government has once again betrayed the trust of the farmers.”

Basis of criticism by the farmers’ unions

All India Kisan Sabha (AIKS), the largest wing of Samyukta Kisan Morcha, gives facts and figures in support of its reactionary criticism of the budget.

AIKS states that the contribution of agriculture and allied sectors to the GDP has increased to 16 per cent of the budget allocation for agriculture and allied activities is lower than the Revised Estimates of 2024-25. While the Revised Estimates of 2024-25 was Rs. 376720.41crores the 2025-26 allocation is only Rs. 371687.35 crores. When inflation is accounted for, this is a huge cut in allocation. Real expenditures for agriculture and allied activities have steadily fallen since 2020-21; farmers are clearly not the priority of the BJP-led NDA Government. There is nothing in the budget to ensure legal guarantee of MSP, expand procurement or free farmers from indebtedness. Even the Parliamentary Standing Committee recommendation to ensure remunerative prices has been thrown to the winds.

The increased share of the agriculture sector in employment rising from 44.1 per cent in 2017-18 to 46.1 per cent in 2023-24 indicates a reverse migration from urban areas as there are no employment opportunities. In an extremely insensitive manner, the budget allocation for the MGNREGA has been kept at just Rs.86,000 crores. There is no emphasis for generation of employment in the countryside. The Government is stopping all funds to the National Institute for Rural Development and there is zero allocation in the budget for it; this also is a telling reflection on the BJP-led NDA Government’s apathy towards rural development and the rural poor.

Food subsidy is lower than the allocation made in 2024-25. The allocation for distribution of pulses to State/Union Territories for Welfare Schemes is zero, while the last Budget had allocated Rs.300 crores. The much-hyped exemption of income tax up to Rs.12 lakh is aimed at quick electoral gains; increasing prices, high levels of indirect taxation, increasing food, health, education, travel expenses will all bring to nought if at all any benefit is accrued through this exemption.

The allocation to the Flagship Program of the Government, the Pradhan Mantri Fasal Bima Yojana for crop insurance has seen a drastic cut from Rs.15,864 crores to Rs.12,242.27 crores.  There has been no increase in allocation to the Pradhan Mantri Kisan Samman Nidhi and the Scheme has had no adjustment even for inflation since 2019 when it was first initiated.

AIKS adds that the Fertilizer subsidy has been cut from  Rs.171298.50 crores to Rs.167887.20 crores, a cut of Rs.3,411.30 crores.  The hollow claim of a Six-Year Initiative of Atmanirbharata Mission for Pulses is exposed when the total allocation for the Mission is merely Rs.1000 crores. This claim ironically comes from a Government that just 10 days ago extended duty-free imports of Arhar/Tur and are incentivizing farmers in Mozambique and other countries. In 2024 imports of pulses almost doubled to 60 lakh tons (between January and November). There is also nothing new in the claim that NAFED and NCCF will procure pulses for the next 4 years to ensure price stability; it only exposes the fact that the private sector will not be willing to buy at MSP.  A Dhan Dhyan Krishi Yojana has been announced claiming that it will cover 100 districts with low yields and benefit 1.7 crore farmers but there is no separate allocation for it. It only is a rehashing of existing programs. No allocation has been made for the Price Stabilization Fund for Rubber or for mitigation of the Wild Animal Menace.

Will the government consider the Farmers’ concerns?

As the farmers are the backbone of the Indian economy and still, they run into losses despite their day and night laborious task. Their major and foremost demand is to ensure legal guarantee for their produce, but the central government is adamant even to hear their grievances.

It is pertinent to mention here that even the Indian Vice-President, Jagdeep Dhankhar himself has also expressed his rage over the inaction of the government for neglecting the demands of the farmers.

On December 3,2024, addressing at the Centenary Foundation Day of Indian Council of Agricultural Research -Central Institute for Research on Cotton Technology (ICAR-CIRCOT), Mumbai, Vice-President Jagdeep Dhankhar supported the MSP demand of the farmers and said, “We are not practical, our policy making is not on the right track. Farmers need a law that guarantees MSP. Look with an open mind, think with an open mind, and evaluate. And it pains me that the well-wishers of the farmers are silent today, they shy away from speaking. No power in the country can stifle the voice of the farmers. A nation will pay a huge price, if it tries the patience of a farmer.”

Will the central government heed towards the inner voice of the worthy Vice-President, if the voice of the farmers strikes feebly into the ears of the government.

But the farmers’ leaders do not expect much from the government in the present scenario, they think that only the stir path can bow down the adamant government. 

AIKS National Vice-President, Dr. Inderjeet Singh warns that there is no other way for the farmers to fight for the reversal of anti-farmer and pro-corporate policies being followed by the Modi government.

Jag Mohan Thaken is a Senior Journalist, Columnist & Political Analyst, views are personal