The government’s continued focus on improving agricultural productivity through enhanced input support and financial access has led to a notable increase in credit disbursement and import of modern machinery during the fiscal year 2024-25.
Agricultural credit disbursement rose by 16.3 percent, reaching Rs. 2,577.3 billion in FY2025, compared to Rs. 2,215.7 billion during FY2024. This increase reflects the government’s commitment to facilitating farmers’ access to timely and affordable financing, says the Monthly Economic Update and Outlook for August 2025.
The momentum was also seen in mechanization, with imports of agricultural machinery and implements surging by 123.9 percent to US$14.4 million in July FY2026, signaling a rising trend in the adoption of modern farming technologies.
Fertilizer offtake during the ongoing Kharif 2025 season (April-July) reflected mixed trends. Urea offtake increased by 2 percent, reaching 1,859 thousand tonnes, whereas DAP offtake recorded a marginal decline of 0.7 percent, totaling 416 thousand tonnes. According to the report, the government remains steadfast in its efforts to support the farming community by ensuring timely access to quality seeds, fertilizers, credit, and agricultural machinery to help boost productivity and rural incomes.
However, the outlook is tempered by challenges stemming from adverse climatic events, including heavy rainfall and floods, which continue to pose risks to achieving the sector’s growth targets, it adds. Despite these hurdles, policymakers reaffirmed their commitment to sustaining agricultural development through policy continuity and targeted support measures.