X: @DrAshokDhawale
By Comrade Ashok Dhawale
Given the track record of the BJP-led government under Prime Minister Narendra Modi, farmers and agricultural workers in India have little to expect from the upcoming Union Budget—except further policies that threaten their livelihoods under the guise of grand promises for their welfare.
A Dismal Record
Over the past decade, successive budgets have favored crony capitalism, benefiting a handful of corporate giants while squeezing working-class people, particularly farmers and agricultural laborers. The rise of an aggressive Donald Trump to the U.S. presidency is expected to further increase imperialist pressures on India’s economy, including agriculture.
The July 2024 Union Budget slashed food subsidies by ₹7,082 crore and fertilizer subsidies by a staggering ₹24,894 crore. The MNREGA allocation of ₹86,000 crore was lower than the previous year’s actual expenditure. Overall allocations for agriculture and allied sectors have declined from 5.44% in 2019 to just 3.15% in 2024.
These policy failures persist despite alarming data: The National Crime Records Bureau (NCRB) reported that 1,00,474 farmers and agricultural workers committed suicide between 2015 and 2022. Meanwhile, the Global Hunger Index 2024 ranked India 105th out of 127 countries, underscoring the severity of the agrarian crisis.
Two Major Pro-Corporate Threats
As a precursor to the 2025 budget, the Modi government unveiled the Draft National Policy Framework on Agricultural Marketing (NPFAM) on November 25, 2024. This framework attempts to reintroduce key pro-corporate elements of the three controversial Farm Laws that were repealed after the historic 2020-21 farmers’ struggle led by the Samyukta Kisan Morcha (SKM). Farmers across the country have already launched massive protests demanding the immediate withdrawal of NPFAM.
Additionally, the government has announced the implementation of the four anti-worker Labour Codes from April 2025. These laws—pushed through Parliament in 2020 alongside the Farm Laws—were stalled due to widespread opposition from trade unions. A general strike called by Central Trade Unions (CTUs) against their implementation is now on the horizon.
Key Farmers’ Demands for the 2025 Budget
- Legal Guarantee for MSP & Loan Waiver
The most critical demand is a statutory Minimum Support Price (MSP) at C2+50%, as recommended by the M.S. Swaminathan Commission in 2006. The absence of a legally enforced MSP has left most farmers at the mercy of private traders who exploit them, forcing them to sell below production costs. This is a key driver of rural indebtedness, distress land sales, and suicides. Despite the BJP’s 2014 election promise to implement this, the government remains silent. The budget must allocate funds to ensure MSP implementation.
Additionally, farmers demand a one-time loan waiver for poor and middle-income farmers. In contrast to corporate loan write-offs worth ₹14.46 lakh crore over the past decade, not a single rupee of farm loans has been forgiven, despite rising farmer suicides. Without addressing rural credit policies, small farmers will remain trapped in debt cycles.
- Reducing the Cost of Production
The skyrocketing prices of agricultural inputs—fertilizers, seeds, insecticides, diesel, water, and electricity—are another major concern. The budget must introduce strict price controls and increase subsidies for these essential inputs. Instead of relying on corporate suppliers, the government should strengthen public sector production of fertilizers, seeds, and agrochemicals to promote self-reliance.
- Comprehensive Crop Insurance
With climate change causing frequent droughts, floods, and unseasonal weather, India needs a farmer-friendly crop insurance scheme. The existing Pradhan Mantri Fasal Bima Yojana (PMFBY) primarily benefits insurance companies, prompting several states to withdraw from it. The budget must provide for an alternative insurance model that genuinely compensates farmers for crop losses.
- Irrigation & Power Sector Reforms
Public sector investment in irrigation and electricity has declined drastically over the past decade, leading to rising costs as these sectors are privatized. The budget must:
• Allocate funds to complete pending irrigation projects, which could significantly expand cultivated land under irrigation.
• Strengthen public sector power supply to ensure affordable electricity for farmers. The privatization of electricity (dominated by monopoly players like Adani, Ambani, and Tata) is driving up costs. The imposition of smart meters has already triggered widespread protests.
- Expansion of MNREGA
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) has been systematically underfunded under the Modi government. Workdays have dwindled to an average of just 45 days per year instead of the mandated 100. The budget must:
• Increase MNREGA wages to ₹600 per day.
• Expand workdays to at least 200 per year.
These measures would boost rural incomes and stimulate local economies.
- Protecting Farmers’ Land Rights
The Modi government’s corporate-driven land acquisition policies threaten farmers and tribals. Violating the Land Acquisition Act, 2013, vast farmlands are being acquired for private industry with little or no compensation. The budget must:
• Ensure land acquisition follows strict public interest guidelines under the 2013 Act.
• Implement radical land reforms to distribute land to landless farmers.
• Enforce the Forest Rights Act (FRA), granting land ownership to tribals cultivating it for generations.
• Provide equal land and property rights for women.
• Promote cooperative farming as an alternative production model.
Funding Farmers’ Welfare: Where Will the Money Come From?
Whenever pro-farmer policies are proposed, the government questions funding sources. However, several measures could generate the necessary resources:
1. Wealth & Inheritance Tax: India’s billionaire count has risen from 109 in 2014 to 200 in 2025, with combined wealth exceeding $1.1 trillion. A progressive wealth tax can address extreme inequality.
2. Reversing Corporate Tax Cuts: Corporate tax rates have been slashed, costing India ₹1.45 lakh crore annually. The budget must restore higher corporate tax rates.
3. Reducing Indirect Taxes: The government earns more from income tax (30.9%) than corporate tax (26.5%). This regressive tax structure burdens the middle class while letting corporates evade fair taxation.
4. Crackdown on Tax Evasion: Stringent enforcement against tax fraud could recover significant revenue.
A Call for a Radical Shift in Policy
Farmers demand a comprehensive break from past budgets that have prioritized corporate profits over agricultural welfare. Without bold policy interventions, the agrarian crisis will only deepen, leading to widespread unrest. The government must act decisively—before frustration boils over into another mass movement.
