The central government is taking significant steps to boost agriculture. The Modi government is reportedly considering increasing the Kisan Credit Card (KCC) loan limit to ₹5 lakh. What are the eligibility criteria to avail of this loan? What measures are being taken to make agriculture more profitable? Here are the details.
The Union Budget for 2025-26 will be presented by Finance Minister Nirmala Sitharaman in Parliament on February 1 at 11:00 AM. This will be the second budget since Prime Minister Narendra Modi assumed office for his third term and the eighth Union Budget to be presented by Nirmala Sitharaman.
The central government continues to prioritize increasing farmers’ income. As in previous budgets, this budget is also expected to include several key announcements benefiting the agricultural sector. These include increasing the Kisan Credit Card loan limit, reducing GST on agricultural products, and enhancing subsidies for agriculture.
Increase in Kisan Credit Card Loan Limit
The central government is likely to increase the Kisan Credit Card (KCC) loan limit from ₹3 lakh to ₹5 lakh. This move is expected to significantly boost farmers’ income potential, enabling them to invest more in their agricultural activities. Farmers, livestock owners, and fishermen can easily avail of loans at low-interest rates through KCCs. Currently, the loan limit is ₹3 lakh, and the proposed increase to ₹5 lakh is expected to be announced in the upcoming budget.
Reduction in GST on Agricultural Products
In the previous budget, ₹65,529 crore was allocated for agriculture-related schemes. Reflecting its consistent focus on developing the agricultural sector and supporting farmers, the central government is expected to increase funding for agricultural schemes by 5% to 7% in the upcoming budget.
The government’s focus on enhancing credit limits, reducing tax burdens, and increasing subsidies is anticipated to make agriculture more profitable and sustainable for farmers across the country.