In a bid to bolster agricultural financing, Union Finance Minister Nirmala Sitharaman announced a significant enhancement in the Kisan Credit Card (KCC) scheme during her Union Budget 2025-26 speech on Saturday. The loan limit under the modified interest subvention (MIS) scheme will be raised from Rs 3 lakh to Rs 5 lakh for loans availed through KCC.
Sitharaman highlighted that the KCC scheme has been instrumental in providing short-term loans to 7.7 crore farmers, including fishermen and dairy farmers. This increase in the loan limit is designed to improve financial accessibility and ensure timely credit for farmers, strengthening their ability to meet their agricultural needs.
“Kisan Credit Cards facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. The loan limit under the modified Interest Subvention Scheme will be increased from Rs 3 lakh to Rs 5 lakh for loans taken through KCC,” said Sitharaman.
The budget also included measures to enhance urea production and launched a five-year mission to improve cotton productivity. As part of efforts to become self-sufficient in urea production, Sitharaman announced the reopening of three government-run urea plants in the eastern region. Additionally, a new urea plant with an annual capacity of 12.7 lakh metric tonnes will be established in Namrup, Assam, to reduce dependency on imports and strengthen domestic fertilizer production.
For the benefit of cotton farmers, Sitharaman introduced a five-year Mission for Cotton Productivity aimed at improving cotton farming productivity and sustainability. “This mission will promote extra-long staple cotton varieties and provide the best science and technology support to farmers,” she said. Aligned with the government’s 5F vision for the textile sector—Farm to Fibre to Factory to Fashion to Foreign—the mission will help increase farmer incomes and ensure a steady supply of quality cotton, boosting India’s traditional textile industry.
Recognizing the potential of marine culture, the Finance Minister also unveiled plans to create an enabling framework for sustainable fisheries development in India’s Exclusive Economic Zone (EEZ) and high seas, with special attention to the Andaman and Nicobar Islands and Lakshadweep. This initiative aims to unlock untapped marine resources, driving economic growth and employment in coastal regions.
India, the second-largest producer of fish globally, has a thriving aquaculture sector and seafood exports valued at Rs 60,000 crore.