Agri credit rises 16% to Rs2.57tr in FY25

The government's focus on improving agricultural productivity through input support and financial access led to higher credit disbursement and machinery imports in FY2024-25.

Agricultural credit rose 16.3% to Rs2,577.3 billion in FY2025, up from Rs2,215.7 billion in FY2024, according to the Monthly Economic Update and Outlook for August 2025. The increase reflects stronger access to affordable financing for farmers.

Mechanisation also gained momentum. Imports of agricultural machinery and implements surged 123.9% to $14.4 million in July FY2026, signalling rapid adoption of modern farming technologies.

Fertiliser trends during Kharif 2025 (April-July) were mixed. Urea offtake increased 2% to 1,859 thousand tonnes. DAP offtake fell slightly by 0.7% to 416 thousand tonnes.

The report said the government remains committed to supporting farmers by ensuring timely availability of quality seeds, fertilisers, credit, and machinery to enhance productivity and rural incomes.