Tamil Nadu’s Agriculture Budget 2025-26, presented by Agriculture and Farmers’ Welfare Minister MRK Panneerselvam on Friday had its focus on farmer welfare, climate resilience, and technological modernisation.
The budget was presented with plans of increasing investment in infrastructure, incentivising diversification, and expanding institutional support for farmers.
It set aside Rs 17,000 crore in cooperative crop loans, promised Rs 1,168 crore for micro-irrigation and continues to prioritise paddy procurement while also expanding the cultivation of oilseeds and millets.
A key highlight of the budget is the establishment of 1,000 Chief Minister’s Farmers Service Centres, aimed at providing farmers with expert guidance, access to quality seeds, fertilisers, pest management solutions, and modern farming technologies.
“These centres will utilise the expertise and technical knowledge of 4,000 agriculture graduates and 600 diploma holders who complete their courses every year. Rs 42 crore from the state budget will be earmarked for this scheme. These centres will serve as hubs for agricultural support, offering essential inputs such as seeds, fertilisers, and other farming necessities,” minister Panneerselvam said.
The budget also outlines a clear focus on moving away from water-intensive crops and expanding sustainable alternatives. The Tamil Nadu Millet Mission has been allocated Rs 55.44 crore to encourage millet production, while the Tamil Nadu Oil Seed Mission will be implemented at a cost of Rs 108.06 crore to reduce dependency on imported edible oils.
The minister said “groundnut, gingelly, sunflower, and castor will be cultivated in an area of 2.16 lakh acres” to achieve self-sufficiency in edible oil production. Also, the Alternative Crop Cultivation Scheme aims to convert one lakh acres from paddy and sugarcane to millets, pulses, and oilseeds, with an allocation of Rs 12.50 crore. However, even as the government promotes diversification, it continues to subsidise sugarcane and paddy cultivation — both of which consume vast amounts of water.
“A special incentive of Rs 215 per Metric Tonne of Sugarcane will be provided over and above the Fair and Remunerative Price (FRP) fixed by the Union Government. This will benefit about 1.30 lakh sugarcane farmers, with a total allocation of Rs 297 crore,” the minister said.
Additionally, Rs 160 crore has been allocated for mechanised paddy cultivation in both delta and non-delta districts. Tamil Nadu, which relies heavily on monsoon-fed agriculture, cannot afford to balance both conservation and expansion of water-intensive crops.
The budget underscores the need for modernisation by allocating Rs 510 crore for farm mechanisation, benefiting 55,000 farmers. It aims to increase efficiency, reduce labour costs, and improve yields.
“Additionally, young entrepreneurs are being encouraged to start agriculture-related businesses, with an incentive of Rs 1 lakh each,” the minister said.
The Tamil Nadu Agroforestry Policy has been introduced to promote the cultivation of high-value trees like sandalwood, red sanders, mahogany, and rosewood, stating that “agroforestry is encouraged to provide additional income to farmers through the cultivation of high-value trees.”
The budget also allocated Rs 142 crore for the Chief Minister’s Mannuyir Kaathu Mannuyir Kaapom scheme, which aims to enhance organic farming, promote soil-friendly practices, and encourage green manure cultivation.
The budget announced Rs 2 crore allocation for an international study tour for 100 progressive farmers to Japan, China, and Vietnam “to help farmers learn the latest technologies and implement the same in their fields…”