Pre-Budget Expectations: Ravi Annavarapu, President, FMC India

The Indian agriculture sector is undergoing major transformation on the back of technological innovations and the upcoming budget presents an integral opportunity to bolster the sector further and empower our farmers.

Increased access to affordable credit remains essential for our farmers. We urge the government to expand interest rate allocation programs and streamline loan processes. Strengthening the PM-Kisan scheme through increased payouts and broader coverage will provide essential income support. A more comprehensive and affordable crop insurance program is also critical to mitigate risks from unpredictable weather and market volatility.

Additionally, the budget must prioritise investments in agricultural research and development (R&D), with a focus on developing new, climate-resilient crop varieties. We also believe that the cost of farming must be reduced. To this end, we strongly recommend a drastic reduction in import duties and GST on pesticides, ensuring farmers have access to high-quality, innovative products. While increased customs duties on pesticides might be beneficial for many, we believe this would be detrimental to farmers. We recommend the budget to focus on two key areas i.e. making innovative technologies accessible and reducing the cost burden on farmers. This requires minimising levies on farm inputs. Specifically, we propose reducing customs duties on intermediates required for manufacturing pesticides from 7.5% to 2.5% and reducing customs duties on pesticides from 10% to 5%.

Furthermore, driving innovation in crop improvement, pest management, and sustainable farming practices is essential. Supporting and expanding Production Linked Incentive (PLI) schemes for the agrochemical and fertiliser sectors will encourage domestic production and reduce reliance on imports. We need to prioritize policies that encourage the adoption of new technologies, including precision agriculture and biotechnology which will help our farmers in the longer run. Sustainable agriculture practices and climate-resilient crops are paramount for the long-term benefit of our agricultural sector.

The 2025-26 budget can be a transformative one for Indian agriculture. In essence, it can lay the foundation for a more resilient, productive, and sustainable agricultural sector by being more inclusive, which will ultimately benefit both farmers and the nation’s economy holistically.