Companies in agriculture sector are looking forward to policy support in the forthcoming Union Budget to boost investments in agri R&D, seed ecosystem, adoption of digital agriculture, sustainable fertiliser use, empowering FPOs and industry status for micro-irrigation among others.

“Granting infrastructure status to the micro-irrigation industry will help the sector and allied industries to flourish, which is predominantly made up of MSMEs, accounting for 95 per cent of the overall agri sector. It can substantially reduce operational costs, lower equipment prices, and drive expansion. Integrating renewable energy, such as solar installations, with micro-irrigation systems can further enhance energy efficiency, cut costs, and boost profitability for farmers,” said Randhir Chauhan, Managing Director, Netafim India.

“Additionally, targeted schemes like Per Drop More Crop (PDMC) aim to tackle pressing issues in irrigation, mechanisation, and agricultural infrastructure. After being subsumed under the Rashtriya Krishi Vikas Yojana (RKVY) in the 2022-23 budget, the PDMC has become a flagship program. With subsidies ranging from 45 per cent to 55 per cent for micro-irrigation systems, and several states offering top-up subsidies, this scheme holds immense promise. Yet, to unlock its full potential, it must remain a centralised and standalone initiative. Centralising PDMC ensures uniformity in implementation, offering clear guidelines and reducing the inconsistencies caused by state-level variations in subsidy distribution. This oversight will allow for strategic prioritisation of regions facing severe water scarcity, which is crucial to combating India’s growing water crisis,” Chauhan added.

“Expanding micro irrigation into canal command areas and incentivising crop diversification into oilseeds, oil palm, and millets would not only increase climate resilience but also bolster farmer incomes. With ever depleting ground water table, we need to have a push for adoption of Drip in water guzzling crops like Rice, wheat, and sugarcane. When we export sugar or Basmati rice, we are exporting water which is a very scarce resource. Also, in crops like rice, we can reduce the release of our GHGs by adoption of Drip Irrigation,” said Chauhan.

Sanjiv Kanwar, Managing Director, Yara South Asia, said “As we anticipate the forthcoming budget, it is important to acknowledge the progress made in the agriculture sector over the past year. The government’s recent initiatives to enhance farmer welfare, including improved credit and insurance schemes, have been commendable steps in the right direction. Looking ahead, we see significant opportunities to further strengthen the sustainability of Indian agriculture. Key areas include increased investment in yield improvement programs, support for seed ecosystem, and accelerated adoption of digital agriculture. Empowering FPOs and implementing a balanced approach to fertiliser subsidy reform will also be crucial. Additionally, policy support for sustainable fertiliser use and faster introduction of new innovative products/ molecules will align well with the industry’s focus on environmental stewardship. We are confident that a forward-thinking budget will empower our farmers and pave the way for a resilient and prosperous agricultural future.”

M K Dhanuka, Chairman, Dhanuka Agritech Ltd, said “We hope this year’s Budget prioritise key reforms, like upgrading rural infrastructure, increasing credit access for farmers, and supporting sustainable farming practices, which are necessary to facilitate inclusion and build resilience in the economy. The government must prioritize increasing investment in agricultural research to address the sector’s growing challenges. The current allocation remains insufficient. The Budget is expected to accelerate the agri-tech revolution like drones, AI, IoT, and satellite data. There is also a decisive need for policies that develop irrigation systems, improve storage facilities, and increase farm-to-market supply chains. A robust, inclusive, sustainable and future-proof agroecosystem can be established through rationalisation of tax structures, export incentivisation and ensuring price stability for agriculture products.”

Rajesh Aggarwal, MD, Insecticides (India) Ltd, said “For the agrochemical sector, the focus should be on incentivising research into eco-friendly and latest new age solutions and PLI. Supporting small-scale farmers with better access to technologies and crop protection solutions will be crucial to increasing yields and reducing losses. I am hopeful that the Budget will prioritise improving infrastructure to support rural communities. Expanding access to digital tools and technologies will empower farmers to make data-driven decisions, enhancing productivity and food security. Additionally, increased budget allocation for R&D will drive the development of novel products and solutions, enabling organisations to better meet the evolving needs of the sector.”

Maninder Singh Nayyar, CEO and Founder, CEF Group, said “By offering incentives, certification subsidies, and improved market access for organic growers, we can drive a meaningful shift toward healthier and more environmentally conscious farming methods. A gradual transition from chemical-based conventional farming to natural farming is essential, and this shift must be supported through comprehensive policies and financial assistance. Encouraging urban farming and creating opportunities for people to grow fresh produce at home can also play a crucial role in enhancing food security, fostering self-sufficient and resilient communities. This initiative could additionally help mitigate air pollution in major cities.”

Sat Kumar Tomer, Founder and CEO, Satyukt Analytics, said “Investments in agri-tech, particularly in AI, IoT, and satellite data integration, are crucial to empowering farmers with actionable insights. By making precision farming accessible to smallholders, we can enhance productivity while minimising environmental impacts. Similarly, fiscal incentives for eco-friendly practices such as organic farming and water conservation will position Indian agriculture as a global leader in sustainable food production. Digital connectivity in rural areas is another cornerstone for transformation. Improved internet access and digital literacy will enable farmers to leverage digital platforms for real-time data on soil health, weather, and market trends.”

“Additionally, support for climate-resilient farming, through research into hardy crop varieties and expanded insurance coverage, is essential to safeguard livelihoods. By fostering public-private partnerships and scaling innovative solutions, the government can create a future-ready ecosystem where technology and sustainability converge to empower every farmer, ensuring India’s agricultural sector thrives in the face of future challenges,” he added.

Chirag Jain, Partner, Grant Thornton Bharat, said, “As India prepares for the upcoming Union Budget, it is essential to recognize that agriculture holds the key to stabilizing inflation, driving rural development, and ensuring long-term food security. By prioritizing strategic investments in agritech, infrastructure, and sustainable practices, the budget can foster a resilient and profitable agricultural sector, stimulating job creation and economic growth while securing the livelihoods of millions of farmers across the nation.”

Seafood exports

Utham Gowda, Founder & CEO of Captain Fresh, said, “As India charts its path to achieve ₹1 lakh crore in seafood exports annually, the Budget is expected to play a pivotal role in driving this ambitious goal. As digitisation becomes an imminent theme in organising global supply chains, India can position itself as an exporter of not just seafood but also technologies that transform the value chain. We hope the government will incentivise innovation by fostering collaboration with tech startups in the production ecosystem — both marine & aquaculture — to address critical challenges like scalability, market access, and international quality standards.

We expect the Budget to emphasise technology integration, infrastructure development, and policy reforms to enable sustainable growth. Strengthening bilateral trade agreements to reduce tariff barriers and prioritising R&D to advance domestic productivity will be crucial for meeting growing global demand.”

“By modernising infrastructure and promoting sustainable practices, the government can boost exports and position India as a global leader in the Blue Economy, creating significant economic opportunities for coastal communities. Aligning fiscal priorities with sectoral needs will also enhance resilience, generate employment, and drive GDP growth while solidifying India’s standing in the $450-billion seafood industry,” Gowda said.

Sugar & ethanol sectors

Tarun Sawhney, Vice Chairman and Managing Director, Triveni Engineering and Industries Ltd, said, “The sugar industry is optimistic that the Budget will address key challenges and pave the way for sustainable growth. A critical area of focus is the long-overdue revision of the Minimum Selling Price (MSP) for sugar, which has remained stagnant at ₹31 per kg since 2019. Rising production costs and the increasing Fair and Remunerative Price (FRP) for sugarcane necessitate a revision to ₹39.14 per kg. Such a move will not only stabilise the financial health of sugar mills but also ensure fair and consistent returns for farmers, creating a balanced and resilient ecosystem. Equally important is advancing India’s ethanol blending goals, as the country approaches the E20 target by 2025.

“Achieving this milestone requires a robust roadmap, including continued policy support, technological innovation, and infrastructure expansion. Meeting the 20 per cent blending target by 2025 will require approximately 1,016 crore liters of ethanol, rising to 1,350 crore liters when accounting for other uses. To meet this demand, ethanol production capacity must reach 1,700 crore liters by 2025. Targeted subsidies of INR 35,000 crore to create an additional 770 crore liters of production capacity will play a pivotal role. A key expectation from the government is the approval of the anticipated ethanol pricing bill, proposing an Rs 4-5 per litre price hike for the Ethanol Supply Year 2024-25. This increase is essential to incentivize ethanol producers and distilleries to enhance production in alignment with India’s blending targets. Linking ethanol pricing to the FRP of sugarcane through a formula-based mechanism could further ensure stability for all stakeholders in the value chain.”

“Furthermore, to establish the roadmap beyond E20 targets, the government should focus on aligning blending targets with domestic feedstock availability and securing a steady supply chain, utilising surplus FCI rice until maize production meets blending requirements. Additionally, it should prioritize the development of flex-fuel vehicles and expand dispensing infrastructure to support various ethanol-blended fuel options effectively. Investments in research and development are also crucial in ensuring India remains a global leader in biofuel innovation. Breakthroughs in 2G ethanol, Sustainable Aviation Fuels (SAF), and ethanol-to-hydrogen conversion technologies will keep India at the cutting edge of the biofuel sector. In parallel, India’s commitment to achieving net-zero carbon emissions by 2070 underscores the need for significant investment in renewable energy.” Sawhney said.

Anubhav Agarwal, MD and CEO, BN Group, said, “The edible oil industry stands at a critical juncture as we continue to balance global market dynamics with domestic challenges. For this Budget, I believe a focused push toward enhancing oilseed cultivation and encouraging investments in advanced refining technologies can truly transform the sector. It’s equally important to address infrastructure gaps that often inflate logistics costs, impacting affordability for consumers. I’m optimistic that the government will also explore policies to stabilize input costs and promote sustainable practices, which are key for long-term growth. With a forward-looking approach, India can significantly reduce its reliance on imports and create a self-reliant edible oil ecosystem.”

Related Topics