India Agriculture 2025 : Impact of American Tariff, Yet India's Agricultural Sector Performs Strongly
Although the tariffs imposed by America have had some impact on India's agricultural exports, the picture that emerges is that India's agricultural sector performed strong and promising in 2025. By the end of the year, the country recorded a record food grain production, which is estimated to be higher than last year's 357.73 million tons. On one hand, there are obstacles in the global market, while on the other hand, domestic reforms have given new strength to the agricultural sector.
The reduction in Goods and Services Tax (GST) rates has provided significant relief in the prices of raw materials. As a result, the production costs for farmers have decreased, benefiting the agricultural industries as well. However, due to American tariffs, there are limitations on the export of some agricultural products, forcing exporters to seek new markets.
In an interview with the news agency, Agriculture Secretary Devesh Chaturvedi stated, “We are confident that India will achieve record food grain production in the period 2025-26 (July–June).” This year's Kharif season production has remained positive, and Rabi sowing is also progressing at a satisfactory pace. The southwest monsoon recorded more rainfall than average, giving a significant boost to Kharif sowing.
The Ministry of Agriculture has received an increased budget of 1.37 lakh crore rupees for the financial year 2025-26. This focuses on increasing farmers' income through high productivity, reduced production costs, crop diversity, value addition, and direct assistance. Under the government's first cabinet decision, the Prime Minister's Crop Insurance Scheme and the Weather-Based Crop Insurance Scheme have been extended until 2025-26, with a provision of 69,516 crore rupees. Additionally, the DAP fertilizer subsidy has been increased by 3,500 rupees per ton.
According to statistics, kharif food grain production is estimated to reach a record 173.33 million tons in 2025-26, which is more than 169.4 million tons in 2024-25. Rice production is likely to exceed 124.5 million tons, and maize production is expected to reach 28.3 million tons. Although some areas experienced crop damage due to heavy rains in September, the overall production has not been significantly affected.
By December 19, rabi sowing had reached 659.39 lakh hectares, which is 8 lakh hectares more than last year. Wheat sowing has also increased from 300.34 lakh hectares to 301.63 lakh hectares. Overall, it is clear that India's agricultural sector is making promising and strong progress in 2025, overcoming global challenges.