Introduction
The Finance Minister announced key provisions in the Union Budget 2025-2026 to promote the food processing industries. Although the government proposed a multi-cornered budget covering different sectors of the economy it has considerable focus on agriculture and food processing.
Prime Minister Dhan-Dhaanya Krishi Yojana – Developing Agri Districts Programme
The Union Finance Minister has announced Prime Minister Dhan-Dhaanya Krishi Yojana’ on lines of the Aspirational Districts Programme. The scheme will be launched in partnership with states to focus on 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The scheme will be a convergence of existing schemes and specialized measures will be taken to effectively implement them. This program is likely to help 1.7 crore farmers.
Key Objectives
The scheme aims to
(1) Enhance agricultural productivity
(2) Adopt crop diversification and sustainable agriculture practices,
(3) Augment post-harvest storage at the panchayat and block level,
(4) Improve irrigation facilities, and
(5) Facilitate the availability of long-term and short-term credit.
Multi-Sectoral ‘Rural Prosperity and Resilience’ Programme
The Finance Minister in the Union Budget announced a comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ program in partnership with states. The program will address underemployment in agriculture through skilling, investment, and technology, and invigorating the rural economy. It aims to generate opportunities in rural areas to check emigration. The program will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.
‘Aatmanirbharta’ in Pulses
The Union Budget provides for a 6-year “Mission for ‘Aatmanirbharta’ in Pulses” with a special focus on Tur, Urad, and Masoor. Under the Scheme, Central agencies such as NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) and NCCF (National Cooperative Consumer’s Federation of India Ltd) will procure these 3 pulses. Farmers will have to register with these agencies and enter into agreements for procurement. The scheme benefits are available during the next 4 years period after registration. There is no procurement limit on the volume of pulses.
Comprehensive Programme for Vegetables & Fruits
Due to increasing nutrition consciousness and rising income levels, the consumption of vegetables, fruits, and shree-anna is increasing significantly in the country. The budget has proposed a comprehensive program to promote production, efficient supplies, processing, and remunerative prices of vegetables and fruits for farmers. The scheme will inculcate farmer-producer organizations and cooperatives for institutional mechanisms, implementation, and participation.
Makhana Board in Bihar
The Union Budget has proposed to set up a Makhana Board in Bihar to improve the production, processing, value addition, and marketing of makhana or Fox Nut. India is the world’s largest producer of Fox Nut (Makhana). Among states, Bihar produces 80% of Makhana in India. The budget proposed for setting up of Farmer Producers Organization for people engaged in these activities. The Board will provide handholding and training support to makhana farmers and will also work to ensure they receive the benefits of all relevant Government schemes.
National Institute of Food Technology, Entrepreneurship, and Management
As a part of its Purvodya Mission, the budget has proposed to establish a National Institute of Food Technology, Entrepreneurship, and Management in Bihar. The institute aims to boost food processing activities in the entire Eastern region. The Institute will have the following objectives
(1) Enhanced income for the farmers through value addition to their produce, and
(2) Skilling, entrepreneurship, and employment opportunities for the youth.
Conclusion: A Glimpse of a Brighter Future
From Increasing the nutritional value of pulses to processing, storage, and procurement of vegetables and fruits to Makhana Board and Makhana-based FPOs, the Union budget provides a glimpse of brighter for food processing industries in India. The proposed National Institute of Food Technology, Entrepreneurship, and Management will enhance the food processing capabilities of eastern India and will help the sector to grow sustainably.