VIJAYAWADA: Agriculture Minister Kinjarapu Atchannaidu on Friday presented the Agriculture Budget for the financial year 2025-26 with an outlay of Rs 48,341 crore. This is an increase from the previous year’s outlay of Rs 43,402.33 crore for FY 2024-25 and Rs 41,149.87 crore for FY 2023-24.
The most notable announcement in the agriculture budget for FY 2025-26 is the ‘Annadatha Sukhibhava – PM Kisan’ scheme, one of the Super Six promises. Under the scheme, Rs 20,000 per annum will be provided to farmers owning land, with Rs 6,000 from the Union government. For landless farmers, the State government will cover the entire Rs 20,000. A budget of Rs 9,400 crore has been proposed for this scheme.
During the Kharif 2024 season, free insurance was implemented using e-Panta data. Starting from Rabi 2024-25, the voluntary enrollment system was reinstated, allowing farmers to join the crop insurance scheme for a minimal premium. The proposed budget for this scheme for FY 2025-26 is Rs 1,023 crore.
At the start of his speech, Atchannaidu quoted renowned agriculture scientist MS Swaminathan: “Agriculture can trigger job-led economic growth, provided it becomes intellectually satisfying and economically rewarding. If agriculture goes wrong, nothing else will have a chance to go right.” Atchannaidu said the TDP-led NDA government, living up to the spirit of Swaminathan’s words, is working toward achieving the goal of Swarna Andhra @ 2047, supporting agriculture as the primary sector. He added that agriculture is a key source of income for the State and indirectly supports industries and service sectors.
“Farmers and Agri-Tech is one of the 10 guiding principles of Swarna Andhra @ 2047, which aims to transform the State into a $2.4 trillion economy by 2047. To achieve 15% annual growth as part of Swarna Andhra, the State government has targeted an increase in the productivity of 11 crops and the area under natural farming,” he elaborated.
The State government also developed an action plan to promote 11 horticulture crops with the highest Gross Value Added (GVA) in cluster mode. These crop-specific clusters are aimed at achieving an annual growth rate of more than 15% each year. Special funds from the National Horticulture Board will be allocated for establishing these clusters.
According to the minister, top priority is being given to Soil Health Cards (SHCs), which were neglected by the previous government. In 2024-25, Rs 13.09 crore was spent to generate 4.3 lakh SHCs under the Soil Health and Fertility Scheme. The target for 2025-26 is 6 lakh SHCs for farmers. Additionally, Rs 40 crore has been proposed for maintaining a buffer stock of 2 lakh metric tons of fertilizers by AP MAKFED to avoid fertilizer shortages.
A Rs 240 crore allocation has been made for quality seeds. Rs 61.78 crore has been allocated for the Andhra Pradesh Community Managed Natural Farming (APCNF).
To prioritise farm mechanisation, the government will continue to provide agricultural machinery and equipment to small and marginal farmers at a 50% subsidy. A Farm Machinery Bank will be set up with Rs 1,000 crore, including Rs 80 crore in subsidy funds. A total budget of Rs 219.65 crore has been proposed for farm mechanisation in FY 2025-26.
As part of the Farmer Registry, the generation of unique IDs for land-owning farmers is underway. These IDs will help provide government services to farmers more efficiently. Additionally, Rs 250 crore has been proposed to settle interest subsidy claims for crop loans taken during 2023-24 and Kharif 2024 under the Vaddi Leni Runalu.
Horticulture clusters
Banana cluster — Anantapur district (sanctioned)
Mango cluster — Chittoor, Annamayya and Tirupati districts
Cashew cluster — Srikakulam, Alluri Sitarama Raju and Parvathipuram Manyam districts
Coconut cluster — Srikakulam, East Godavari, and Konaseema districts
Oil palm, Cocoa clusters — Eluru and East Godavari districts
Chilli cluster — Prakasam and Guntur districts
Key schemes and allocations
Annadatha Sukhibhava PM Kisan
Allocation: Rs 9,400 crore
Details: Rs 20,000 per annum to farmers owning land (Rs 6,000 from Centre, remaining from State).
For landless farmers, the State government will bear the full Rs 20,000
Crop Insurance Scheme
Allocation: Rs 1,023 crore
Details: Implementation of free insurance for Kharif 2024 using e-Panta data; voluntary enrollment reintroduced for Rabi 2024-25 at a minimal premium
Soil Health Cards (SHCs)
Allocation: Rs 40 crore
Details: 6 lakh SHCs to be generated for farmers in FY 2025-26 (targeted 2 lakh metric tons of buffer stock for fertilizers to prevent shortages)
Farm Mechanization
Allocation: Rs 219.65 crore
Details: Continued 50% subsidy for small and marginal farmers for agricultural machinery and equipment. Rs 1,000 cr set aside for Farm Machinery Banks, with Rs 80 crore in subsidies.
Horticulture Crop Clusters
Details: Development of 11 horticulture crop clusters, targeting an annual growth rate of more than 15% each year. Special funds to be allocated from the National Horticulture Board
