Union Budget is 'pro-corporate,’ anti farmers

Union Budget is 'pro-corporate,’ anti farmers

The Union Budget positioned agriculture as the "first engine of growth" to boost the sector, farmers and agricultural experts have expressed disappointment, arguing that the budget offers little for agriculture and favours corporate interests.

Let us recall that when Arun Jaitley presented his first budget in 2014, he had listed farmers’ income as one of his top five priorities. Now, in 2025, farmers’ income is at the bottom of the priority list. Farmers hoped that Finance Minister Nirmala Sitharaman would continue from where Jaitley left off and take meaningful steps for agriculture. While she has labelled agriculture as the first engine of growth, in reality, it remains neglected.

Total budget allocation for agriculture has increased from Rs 1.52 lakh crore last year to Rs 1.71 lakh crore this year, but this amount is still significantly lower than the Rs 2.74 lakh crore allocated for pensions and salaries of central government employees.

For a country where 50 per cent of the population depends on agriculture, this 3.38 per cent share of the total budget is alarmingly low. In contrast, the budget for government employees is much higher. Does this not show how agriculture is being deliberately ignored?

The budget is cosmetic in nature changes, significant investments were needed to truly make agriculture an engine of growth. The government has announced a national mission on pulses, but such a mission was unnecessary as they have already ensured that imports are restricted.

Similarly, creating a Makhan Board is just a token measure. What agriculture truly needs is a substantial budget increase. If we want to make real progress, we should allocate an additional ₹5 lakh crore every year for five years, considering that 700 million people depend on agriculture.

The finance minister did not mention the Minimum Support Price (MSP) for crops or the Kisan Nidhi Scheme in the budget. These are the measures that would have directly benefited farmers, yet they were ignored.

The proposed Pulses Mission could benefit farmers by mitigating market and price risks. "For the next six years, para-statal agencies like NAFED will engage in contract farming of three pulses, ensuring that the government purchases them at fair prices.

This initiative is similar to the package offered to agitating farmer unions in Punjab last year. However, he pointed out that major agricultural market reforms beyond pulses were missing.

On the issue of low crop yields, Singh emphasized that bridging yield gaps would be challenging given the weak state of public agricultural extension services.

However, welcome the increase in the Kisan Credit Card (KCC) limit from Rs 3 lakh to Rs 5 lakh, noting that it could be useful for farmers engaged in high-value sectors such as livestock and fisheries.

The budget had failed to address key demands. Despite the government’s claims, there is nothing in this budget for farmers. We expected steps to ensure a legal guarantee for MSP, loan waivers, and improvements to crop insurance schemes, but none of these demands were met.

The farmers are the backbone of the country, yet only the cash credit limit has been raised from Rs 4 lakh to Rs 5 lakh. It should have been at least Rs 10 lakh.

The government for neglecting the long-standing demand for a legally guaranteed MSP at C2+50 per cent for all crops. This must be examined critically in the context of soaring corporate profits, which rose from Rs 10.88 lakh crore in 2022-23 to Rs 14.11 lakh crore in 2023-24. 

Meanwhile, there is no comprehensive loan waiver scheme for farmers, even though a parliamentary committee has recommended it. In the past two years, scheduled commercial banks have written off corporate loans amounting to Rs 2.09 lakh crore and Rs 1.70 lakh crore, respectively.

It is necessary to condemn the budget for failing to address employment generation and rural-to-urban migration. Workers’ rights, including minimum wages and secure employment, have been ignored.

Farmers say  this budget has completely failed to meet the expectations of farmers and farm labourers. We have been protesting for over a year, yet the government remains silent on their welfare.