The Tamil Nadu government unveiled its fifth exclusive agriculture budget on Saturday increasing the total allocation for agriculture and allied sectors by 8 per cent for 2025-26 compared to the revised estimates for 2024-25. The state allocated ₹45,661 crore up from ₹42,282 crore in the previous year. The Agriculture Budget 2025-26 focuses on boosting farmers’ income while expanding into crop diversification, organic farming, mechanization, and nutrition initiatives. Special priority is given to schemes benefiting SC/ST communities.
Presenting the budget, Agriculture Minister M R K Panneerselvam noted that the state’s gross cropped area had increased from 146.77 lakh acres in 2019-20 to 151 lakh acres in 2023-24, while the double-cropped area grew from 29.74 lakh acres to 33.60 lakh acres. The state has also made significant advancements in productivity, ranking first in ragi production, second in maize, oilseeds, and sugarcane, and third in groundnut and minor millets at the national level.
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Horticulture remains a key growth driver, with the total area under horticulture crops reaching 16.3 lakh hectares in 2023-24. To support food security, the government has increased the food subsidy allocation from ₹10,500 crore in the previous year to ₹12,500 crore in 2025-26. Additionally, ₹525 crore has been earmarked to incentivize paddy procurement.
For farmers’ electricity needs, the state will provide ₹8,186 crore to the Tamil Nadu Power Distribution Corporation to ensure free electricity connections, an increase from ₹6,962.93 crore in 2024-25.
For sugarcane farmers, the government has introduced a ₹349 per metric ton (MT) incentive over the central government’s Fair and Remunerative Price (FRP), bringing the total price to ₹3,500 per MT. This initiative is expected to benefit 1.3 lakh farmers, with an allocation of ₹297 crore.
The state is also promoting agricultural mechanization, with plans to establish 130 custom hiring centers with a subsidy of ₹10.5 crore. In 2025-26, Tamil Nadu will distribute 7,900 power tillers and 6,000 power weeders to small and marginal farmers. Additionally, 5,000 agricultural machines and implements will be provided to villages under the Kalaignarin All Village Integrated Agricultural Development Programme.
The Agricultural Mechanization scheme will be implemented at an outlay of ₹215.80 crore, benefiting 17,000 farmers. Subsidies for small paddy transplanters will be increased from ₹1.5 lakh to ₹1.7 lakh, while subsidies for power weeders will rise from ₹63,000 to ₹85,000.
Recognising the growing number of agriculture graduates in the state, the government will establish 1,000 Chief Minister’s Farmers Service Centres. Each centre, costing ₹10-20 lakh, will receive a 30 per cent subsidy of ₹3-6 lakh. A total of ₹42 crore has been allocated for this initiative, which aims to provide farmers with seeds, fertilisers, expert guidance, and modern agricultural techniques.
Key Highlights:
- Nutrition Farming Mission: ₹125 crore allocated to enhance nutritional security and farmers’ income.
- Chief Minister’s Mannuyir Kaathu Mannuyir Kaapom Scheme: ₹142 crore allocated for 15 key components.
- Natural Farming Promotion: ₹12 crore to support 7,500 farmers across 37 districts.
- Seed Farms & Processing Units: ₹250 crore for seed farms and ₹15.05 crore for seven State Seed Processing Units.
- Crop Insurance Scheme: ₹841 crore allocated as state share of premium subsidy for 35 lakh acres
- Cooperative Crop Loans: ₹17,000 crore to support agricultural credit needs.
- Tamil Nadu Agroforestry Policy: to be unveiled to encourage the cultivation of high-value trees and streamline timber regulations
- International Exposure for Farmers: ₹2 crore to facilitate visits to Japan, China, and Vietnam for 100 progressive farmers.
- Maize Production Enhancement: ₹40.27 crore for 1.87 lakh acres, benefiting 79,000 farmers.
- Tamil Nadu Cashew Board: to be set up at an outlay of ₹10 crore to support cashew farmers and rural workers.
- Solar Pumpsets for Farmers: ₹24 crore to install solar pumps for 1,000 farmers, with up to 70 per cent subsidy.
- Mini Dairy Scheme: Supporting 5,000 milk producers with 4 per cent interest subvention for steady income.
