New Delhi: The Indian agriculture sector is closing out 2025 on an incredibly positive note, marked by record-breaking production and significant financial relief for the farming community. Despite facing a complicated global environment and new trade taxes from countries like the US, India is set to surpass its previous foodgrain production record of 357.73 million tonnes.
This achievement is largely credited to a very successful monsoon season, which allowed the Kharif crop to reach a historic 173.33 million tonnes. With crops like rice and maize leading the way, and winter sowing for wheat and pulses looking stronger than last year, India has solidified its position as a food-secure nation even during times of global uncertainty.
One of the biggest wins for farmers this year has been the government’s decision to slash the Goods and Services Tax (GST) on essential farming equipment. In September, the tax rate was reduced from 18% to 5% on various agricultural tools and machinery. This move has made modernising a farm much more affordable; for example, a farmer looking to buy a new tractor can now save anywhere between ₹50,000 and ₹1 lakh.
Beyond machinery, the government also provided relief to the dairy and livestock sector by making essential items like paneer, chhena, and UHT milk tax-free. These changes have directly reduced the daily cost of living and working for millions of rural households across the country.
While the domestic front looks bright, the export market required careful navigation this year due to new tariffs introduced by the United States. These taxes made it more expensive to sell Indian produce in American markets, but Indian exporters showed great resilience by quickly finding new buyers in other parts of the world.
As a result, agricultural exports for items like tea, coffee, and spices actually grew by 9% in the first half of the fiscal year. This ability to adapt has ensured that Indian farmers continue to have access to global customers despite shifting international trade policies.
Looking ahead to 2026, the government is preparing to introduce new laws specifically designed to protect farmers from the risks of low-quality or “fake” agricultural products. New bills concerning seeds and pesticides are expected to be passed to ensure that every input a farmer buys meets strict quality standards, preventing crop failure and financial loss.
Furthermore, with a massive budget of ₹1.37 lakh crore allocated for the coming year, there will be a stronger focus on crop insurance, fertiliser subsidies, and helping farmers switch to high-value crops. By combining record production with these protective new reforms, 2025 has set a strong foundation for a more profitable and secure future for Indian agriculture.
