The Union budget for 2024-25 may set aside ₹2 lakh crore for the agriculture ministry to help it expand the government's flagship schemes on income support and crop insurance for farmers, two officials aware of the plans said. This will be a 39% increase in allocation for the ministry, which received 21.44 lakh crore in the 2023-24 budget. A bigger allocation may also help the ministry raise annual farmer income support from the current 6,000 to ₹9,000.
The Union ministry of agriculture and farmers' welfare governs key schemes such as Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) and Pradhan Mantri Fasal Bima Yojana (PMFBY). PM-Kisan, which completes five years in February, promises up to 26,000 every year for farmers as minimum income support, while PMFBY, which debuted in 2016, is a crop insurance scheme that allows farmers to pay only 1.5-5% of the premium depending on the crop and the harvest season. The balance premium is paid by the government.
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