Farmers disappointed with Budget 2025, call it ‘hopeless’

The Union Budget 2025 has left farmers disappointed, with farm leader Anil Ghanwat calling it a "hopeless budget" that offers no real solutions to agricultural distress.

While the government claims to support farmers through better technology and increased urea production, Ghanwat argues that restrictive policies, export bans, and the lack of Minimum Support Price (MSP) hikes negate any potential benefits.

Also read: Budget: Ambitious schemes fall short of addressing stark agrarian distress

Lack of MSP hike and tech freedom

Ghanwat criticizes the government for failing to raise MSP, a major demand from farmers. "They say they want to increase productivity and climate resilience, but they oppose genetically modified seeds. How can that happen?" he asks.

According to him, India’s indigenous seeds are not equipped to handle modern farming challenges, and the government's opposition to GM crops restricts innovation and growth.

Export bans hurt farmers' incomes

Despite the government’s claims of boosting agricultural exports, Ghanwat points out that key commodities remain banned from exports.

"Almost all agricultural commodities are banned. The futures trade has also been extended for two more months. How can farmers benefit from these restrictive policies?" he questions.

GST relief ignored in Budget

One of the farmers’ major demands was the removal of GST on farm equipment, fertilizers, and pesticides. However, the Budget did not address this issue.

"Farmers are paying GST on essential farm inputs, yet they don’t receive any reimbursements like other industries do. This is sheer exploitation," Ghanwat states.

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Farmers trapped in debt cycle

With no loan waivers announced, Ghanwat warns that increasing the Kisan Credit Card loan limit from Rs 3 lakh to Rs 5 lakh may push farmers further into debt rather than solving their financial distress.

"Almost 7 lakh farmers have committed suicide in the past 30 years because of debt. Instead of providing relief, the government has increased the poison dose by raising the loan limit. Farmers need policies that allow them to repay their loans, not more debt," he says.

Restrictions on agriculture trade

Ghanwat also criticizes the government's restrictions on agriculture trade, including bans on wheat and rice exports and restrictions on futures trading.

"Farmers could have repaid their loans if wheat prices were not suppressed by export bans. Instead, the government continues to control agricultural trade, ensuring farmers remain in financial distress," he explains.

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PM-Kisan scheme: Too little, too late

While there were expectations that the PM-Kisan scheme payments would be increased, the budget did not address this. Ghanwat suggests that instead of small cash transfers, farmers should receive direct financial aid per acre.

"Rs 6,000 or Rs 10,000 per year is not enough for a family. The government should provide ₹15,000 per acre per season or give complete trade freedom to farmers," he asserts.

Organic farming: A waste of money?

The government’s push for organic farming has also drawn criticism from Ghanwat.

"This is a waste of money. Before independence, India relied on natural farming, and we had to import wheat and rice to survive. Modern fertilizers and pesticides made us self-sufficient. We are now moving in the wrong direction while the world adopts advanced technology for higher yields," he warns.

Also read: Three major demands of farmers remain unresolved in Budget 2025-26

Will the government reconsider its policies?

With Budget 2025 failing to meet farmers’ expectations, concerns remain about agricultural distress and mounting debt. Ghanwat urges the government to reconsider its restrictive policies and provide real relief to farmers.

"If the government truly wants to help farmers, it should remove trade restrictions, allow technology freedom, and ensure fair pricing," he concludes.

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