Transforming India's Agriculture and Dairy Sectors: Key Policies and Budget Highlights

The Union Cabinet granted funding of ₹1,000 crore for the Reformed National Program for Dairy Development (NPDD) to support the livestock industry. India's Budget of 2025-26 defines agriculture as the key development force driving the country's progress. The government approved the extension of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme until 2025-26 on January 1st 2025. The government approved the expansion of One-time Special Package on Di-Ammonium Phosphate (DAP) on January 1, 2025. On November 25 2024 and established the National Mission on Natural Farming (NMNF) with an expenditure budget of Rs 2481 crore.

The Cabinet also made the decision to merge all Centrally Sponsored Schemes under the Ministry of Agriculture between two integrated programs named Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY) on October 3, 2024. The National Mission on Edible Oils – Oilseeds received cabinet approval with an expenditure budget of Rs 10,103 crore through a decision passed on October 3, 2024.

Introduction

• On March 19, 2025 the Cabinet of Union Ministers made substantial improvements to the agricultural and dairy and animal husbandry operational sectors. 

• The rural economy of India relies on these sectors because they create employment and offer economic stability. 

• The government established essential initiatives which focus on sector modernization while enhancing productivity as well as ensuring long-term development.

Key Reforms in Dairy Sector

Revised National Program for Dairy Development (NPDD)

The Updated National Program for Dairy Development (NPDD) obtained government approval with a budgetary increase of ₹1000 crore.

• Budget Allocation:

  • ₹1,000 crore was added to raise the government allocation to ₹2,790 crore during the 15th Finance Commission period (2021-22 to 2025-26).

• Objectives:

  • The government aims to improve the milk procurement system along with processing facility strength and quality management systems.

  • The improvement of farmer market access occurs through value addition to products.

  • Dairy supply chain enhancement will boost rural income through better performance.

• Components:

  • The dairy infrastructure enhancement stands as Component A of this program.

  • Component B: Dairying through Cooperatives (DTC) with JICA partnership.

• Expected Outcomes:

  • Establishment of 10,000 new Dairy Cooperative Societies.

  • Creation of 3.2 lakh jobs, 70% benefiting women.

Revised Rashtriya Gokul Mission (RGM)

• Budget Allocation:

  • The budget received an additional funding of ₹1,000 crore that increased its total amount to ₹3,400 crore.

• New Additions:

  • The funding provides temporary capital cost assistance valued at 35% to establish 30 facilities that house 15,000 heifers.

  • The government offers three percent interest rate reduction to anyone borrowing money for purchasing HGM IVF heifers.

• Ongoing Activities:

  • The government aims to enhance the capabilities of semen stations and Artificial Insemination (AI) network infrastructure.

  • The production of bulls and agricultural breed improvement relies on the use of sex-sorted semen.

  • Skill development and awareness programs

  • Establishment of Centres of Excellence.

• Expected Outcomes:

  • Increased income for 8.5 crore dairy farmers.

  • Scientific conservation of indigenous bovine breeds.

Key Agriculture Sector Provisions in Union Budget 2025-26

Major Agricultural Schemes

• Prime Minister Dhan-Dhaanya Krishi Yojana: Targeting 100 low-productivity districts.

• Rural Prosperity and Resilience Programme: Addressing underemployment and technology-driven transformation.

• Mission for Aatmanirbharta in Pulses: Enhancing production of Tur, Urad, and Masoor.

• National Mission on High Yielding Seeds: Strengthening research for high-yield, pest-resistant seeds.

• Cotton Productivity Mission: The Cotton Productivity Mission aims to enhance cotton production and establish cultivation of extra-long staple cotton varieties.

Animal Husbandry and Fisheries

• The Makhana Board in Bihar serves as a promotional body to enhance both makhana agriculture and distribution activities.

• Through the Fisheries Development Framework the government works to harness marine resources sustainably.

Financial Reforms

• The Kisan Credit Card received an expanded loan amount increase from ₹3 lakh to ₹5 lakh.

• Grameen Credit Score: Credit access improvement for SHG members.

• Micro Enterprises Credit launched new designed credit cards with a maximum borrowing capacity of ₹5 lakh.

Recent Cabinet Decisions (Since October 2024)

• Pradhan Mantri Fasal Bima Yojana (PMFBY) Extension

  • The scheme extends until 2025-26 while receiving an allocated budget of Rs. 69,515.71 crore.

  • Introduction of a Fund for Innovation and Technology (FIAT) worth Rs. 824.77 crore.

• National Mission on Natural Farming (NMNF)

  • Rs. 2,481 crore outlay till 2025-26.

  • The main goal of this initiative is to establish chemical-free agricultural practices alongside improving soil condition.

• PM Rashtriya Krishi Vikas Yojana (PM-RKVY) & Krishonnati Yojana (KY)

  • Combined budget of Rs. 1,01,321.61 crore.

  • Implementation through State Governments.

• National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)

  • The oilseed production sector receives funding support of Rs. 10,103 crore through a financial outlay.

  • Target of increasing domestic edible oil production to 25.45 million tonnes by 2030-31.

Key Welfare Schemes

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

  • Direct financial assistance of Rs. 6,000 per year to farmers.

  • Through the 19th installment the scheme provided financial support to more than 9.8 crore farmers.

• Pradhan Mantri Kisan Maandhan Yojana (PMKMY)

  • The PMKMY offers under the voluntary pension scheme post-retirement benefits that reach Rs. 3,000/month.

• National Livestock Mission (NLM)

  • The budget established Rs. 324 crore specifically for creating employment opportunities in the livestock sector.

• Animal Husbandry Infrastructure Development Fund (AHIDF)

  • Dairy and meat processing infrastructure received a budget revision of Rs. 29,610 crore through the administration.

• National Animal Disease Control Programme (NADCP)

  • The Foot and Mouth Disease control program executed 99.71 crore vaccinations.

Conclusion

Indian agriculture together with dairy receive increased attention through modernization policies and budgetary investments from the government. Through enhanced infrastructure and cooperative strengthening alongside sustainable farming practices the country will achieve long-term sector growth and achieve both economic stability and increased farmer income.