Agriculture

In a move expected to strengthen the rural economy and support millions of sugarcane growers, the Uttar Pradesh government has increased the state-advised price (SAP) for sugarcane for the 2025–26 crushing season. The decision, which comes ahead of the next harvest cycle, is projected to enhance farmers’ earnings while potentially impacting sugar mill margins. As India’s largest sugar-producing state, Uttar Pradesh’s pricing strategy plays a pivotal role in shaping national sugar output, ethanol supply, and overall agricultural sentiment across the northern belt.

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India is intensifying its push to expand rice exports to 26 international markets, as part of a strategic initiative led by the Agricultural and Processed Food Products Export Development Authority (APEDA). The move aims to diversify export destinations, strengthen trade relationships, and enhance the country’s dominance in global rice markets. Leveraging its production capacity and competitive pricing, India seeks to tap into new regions across Africa, the Middle East, Europe, and Latin America.

In a significant policy enhancement aimed at promoting agricultural innovation, the Maharashtra government has doubled its financial aid for farmers participating in foreign study tours—from Rs. 1 lakh to Rs. 2 lakh per participant. The move, designed to offset rising international travel costs, seeks to empower farmers with global exposure to modern agricultural techniques, processing technologies, and market practices.

Prime Minister Narendra Modi launched an ambitious set of agricultural development schemes valued at Rs 35,440 crore, aiming to modernize India’s farming sector, enhance rural incomes, and strengthen food security. The initiative encompasses irrigation projects, crop diversification, mechanization support, and direct benefit transfers to farmers. Officials highlight that these programs are designed to improve productivity, promote sustainable farming practices, and increase market access for smallholders.

The Uttar Pradesh government has announced that the state’s paddy procurement season will commence from October 1, providing timely financial relief and guaranteed market access to rice farmers. This initiative aims to stabilize prices, protect farmer incomes, and ensure sufficient grain stock for public distribution. Authorities have outlined detailed procedures, including designated procurement centers, fixed minimum support prices (MSP), and streamlined payment mechanisms.

India and Russia have initiated high-level discussions to expand bilateral agricultural trade, aiming to strengthen economic cooperation and diversify food supply chains. The dialogue focuses on increasing the export and import of key commodities, enhancing investment in agro-processing, and exploring technological collaboration in agriculture. Both nations emphasized the potential for mutually beneficial partnerships in sectors such as grains, pulses, dairy, and farm machinery.

A government decision to cut Goods and Services Tax (GST) on tractors and related equipment, effective September 22, is expected to provide significant relief to farmers by lowering purchase costs. The reduction aims to support rural incomes, stimulate mechanization, and enhance agricultural productivity at a time when input costs have been weighing heavily on farming communities. Industry players anticipate stronger demand for tractors and allied machinery, which could benefit both manufacturers and the broader rural economy.

Union Agriculture Minister Shivraj Singh Chouhan has reaffirmed that no international trade agreement will be allowed to compromise the interests of India’s farmers. His statement comes at a time when negotiations on agricultural imports are gaining momentum in global forums. Chouhan underscored that while India remains committed to fair trade practices and international cooperation, the government’s top priority is safeguarding the livelihood of farmers who form the backbone of the rural economy.

In a move aimed at easing the financial burden on India’s agricultural community, the government’s recent decision to reduce the Goods and Services Tax (GST) on key farm inputs is set to benefit nearly 10 crore farmers nationwide. The measure is designed to lower production costs, enhance affordability of essential equipment, and promote greater adoption of modern agricultural practices. Analysts say the reform underscores the state’s commitment to rural welfare, addressing rising input costs while supporting long-term goals of food security and sustainable growth.

The National Bank for Agriculture and Rural Development (Nabard) is preparing to raise its maiden external commercial borrowing (ECB) in the financial year 2025–26. This move is aimed at diversifying its funding base and tapping into international capital markets to support rural credit expansion. As the apex development finance institution for agriculture and rural infrastructure, Nabard has historically relied on domestic sources such as bonds and deposits.