GOOD NEWS for Farmers: Central Government increases kisan credit card loan limit to Rs 5 lakh

Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on February 1st. This is the second budget after Prime Minister Narendra Modi came to power for the third time. This is the eighth Union Budget to be presented by Finance Minister Nirmala Sitharaman.

The central government is constantly prioritizing increasing farmers' income. Like the previous budgets, this budget is also expected to contain many important announcements that will benefit the agricultural sector. That is, announcements like increasing the Kisan Credit Card limit, reducing GST on agricultural products, and increasing agricultural subsidies are expected to be in the budget.

The central government is likely to increase the limit of Kisan Credit Cards (KCC) from ₹3 lakh to ₹5 lakh. This step will significantly increase the income potential of farmers. This will enable them to invest more in their agricultural activities. Farmers, livestock farmers, and fishermen can easily get loans at low interest rates from banks through Kisan Credit Card. Currently, the limit of this loan is ₹3 lakh, and it is expected that an announcement will be made during the budget to increase it to ₹5 lakh.

GST reduction on agricultural products

The central government has decided to reduce the GST on agricultural inputs like seeds and fertilizers. Currently, farmers are facing difficulties due to the high GST on seeds and fertilizers separately. By reducing these, farmers' profits can be increased. An announcement regarding this will be made in the budget.

Increased funding for agricultural projects

In the previous budget, ₹65,529 crore was allocated for agriculture-related projects. It is expected that the allocation for agriculture-related projects will be increased by 5% to 7% in the upcoming Union Budget, reflecting its continued focus on developing the agricultural sector and supporting farmers.