The agriculture budget marks a significant commitment towards addressing the critical needs of farmers, enhancing agricultural productivity, and ensuring sustainability across the farming community.
Published Mar 15, 2025 | 5:17 PM ⚊ Updated Mar 15, 2025 | 5:17 PM
Rice grains. (Creative Commons)
Synopsis: By focusing on initiatives such as crop insurance, irrigation efficiency, mechanization, organic farming, and improving market access, the budget aims to enhance the resilience and competitiveness of Tamil Nadu’s agriculture sector amidst changing climate conditions and market dynamics.
Tamil Nadu’s Agriculture and Farmers’ Welfare Minister MRK Paneerselvam presented the state’s Agriculture Budget for the financial year 2025-2026 on Saturday, 15 March, with an outlay of ₹45,661.45 crore.
The budget marks a significant commitment towards addressing the critical needs of farmers, enhancing agricultural productivity, and ensuring sustainability across the farming community.
It focuses on important initiatives, from crop insurance and paddy production enhancements to the introduction of innovative agricultural technologies.
The budget allocated ₹841 crore for crop insurance, besides setting aside ₹1,168 crore for micro-irrigation systems aimed at conserving water while boosting productivity on three lakh acres.
The Tamil Nadu government claimed that this budget is a testament to its relentless effort to secure a prosperous future for Tamil Nadu’s farming sector, ensuring its growth and resilience in an increasingly volatile climate.
A key element of this budget is the allocation of ₹42 crore for the creation of 1,000 Chief Minister’s Farmer Welfare Service Centers, which will be operated by graduates and diploma holders in agriculture.
These centers are expected to provide modern technology, expert agricultural advice, and crucial resources to farmers.
This initiative is particularly important in bridging the knowledge gap in rural areas, where many farmers still rely on traditional methods. By providing accessible services and expert guidance, this scheme will empower farmers to adopt new techniques and improve productivity.
An allocation of ₹160 crore is expected to enhance production capabilities through better irrigation, improved seeds, and technical support. In particular, ₹102 crore will be used for the first-time implementation of the scheme in 34 lakh acres in non-delta districts, and ₹58 crore for 18 lakh acres in delta districts.
These measures are expected to boost rice production significantly, expanding beyond traditional areas and addressing concerns around regional disparities in agricultural development.
Water scarcity is one of the critical challenges faced by Tamil Nadu’s agriculture, and the budget tackles this issue head-on with an allocation of ₹1,168 crore for micro-irrigation systems across 3 lakh acres.
By focusing on water-efficient irrigation technologies, such as drip and sprinkler systems, the government aims to improve water use efficiency and ensure that crops, especially those in water-scarce regions, receive adequate irrigation.
This scheme not only aims to preserve water resources but also enhances agricultural productivity in a sustainable manner.
The budget also recognises the need for targeted support to specific crops and farmer groups. It allocated ₹297 crore for providing special incentives of ₹349 per tonne to 1.3 lakh sugarcane farmers for the 2024-25 season.
This direct support is designed to boost production and improve the financial condition of sugarcane farmers, who are often impacted by fluctuating market prices.
Further, ₹108.6 crore has been earmarked for oilseed cultivation projects, specifically targeting 90,000 farmers who grow groundnuts, sesame, and sunflower.
With rising domestic demand for oilseeds and the growing need for self-sufficiency in edible oils, this initiative aims to support farmers in increasing oilseed production, which will, in turn, contribute to the state’s economic stability.
The budget’s emphasis on mechanisation is reflected in the ₹215.8 crore allocation for the mechanisation in the agriculture sector, benefiting approximately 17,000 farmers. This funding will help modernise farming operations, reduce labor costs, and improve overall efficiency.
Additionally, the government has earmarked ₹39.2 crore for linking 56 regulated markets to the national electronic agricultural market (eNAM), improving market access for farmers, and ensuring better price realisation.
The creation of 130 agricultural machinery rental centers with ₹10.5 crore will make modern farming equipment accessible to small and marginal farmers, facilitating the adoption of advanced technologies at affordable costs.
Organic farming is gaining traction globally, and Tamil Nadu is looking to support this trend with ₹12 crore allocated for expanding organic farming initiatives. This funding will aid farmers in adopting organic practices, which are more environmentally friendly and offer premium market value for their produce.
Additionally, the government has allocated ₹22.8 crore for the hill tribe farmers’ progress scheme, benefiting 63,000 tribal farmers. This initiative is a step toward ensuring inclusive development, recognising the unique challenges faced by tribal farmers, and ensuring that they have access to the resources they need to thrive.
Another significant allocation is ₹50 crore for setting up an online door delivery system connecting 20 farmer markets for fresh vegetables. This will help farmers directly sell their produce to consumers, reducing intermediaries and ensuring better returns.
Moreover, the creation of storage warehouses with a capacity of 1,000 metric tonnes, funded with ₹20 crore, will help reduce post-harvest losses and ensure that agricultural produce is stored properly until it can be marketed.
The budget’s allocation for Geographical Indication (GI) registration for agricultural products aims to protect and promote unique local agricultural products, boosting their market value and ensuring that they are recognized nationally and internationally.
For landless agricultural labourers, significant improvements have been made in financial assistance to support their welfare. The compensation for accidents resulting in death has been increased from ₹1 lakh to ₹2 lakh. In the event of a loss of limb due to an accident, the financial aid has been raised to ₹1 lakh.
Furthermore, the assistance for natural death has been increased from ₹20,000 to ₹30,000, providing greater support to families in need. Additionally, the financial aid for funeral expenses has been substantially increased from ₹2,500 to ₹10,000, reflecting the government’s commitment to improving the well-being of agricultural laborers and their families.
The budget presents a comprehensive approach that addresses both immediate challenges and long-term sustainability goals.
By focusing on initiatives such as crop insurance, irrigation efficiency, mechanization, organic farming, and improving market access, the budget aims to enhance the resilience and competitiveness of Tamil Nadu’s agriculture sector amidst changing climate conditions and market dynamics.
With significant investments in infrastructure, support systems for farmers, and technological advancements, the budget outlines measures that can help create a more robust agricultural framework, contributing to the overall development of the state’s economy.
(Edited by Majnu Babu).
