With the final quarter of the financial year 2025-26 underway, the Uttar Pradesh agriculture department finds itself in a precarious position, having spent a mere 45% of its total allocated budget. This marks a significant drop from the previous year's utilization and has left several flagship initiatives, including critical seed parks and a major solar pump scheme, without any financial deployment.
Budget Allocation vs. Actual Expenditure: A Growing Gap
The state government had allocated a substantial sum of approximately Rs 8,620 crore to the agriculture sector in the budget presented in February 2025. Out of this total, a dedicated amount of Rs 5,647 crore was earmarked for various developmental schemes. However, departmental data reveals that only Rs 3,906 crore has been spent in the first nine months of the fiscal year.
This spending rate of around 45% stands in stark contrast to the performance in the 2024-25 financial year, where the department managed to utilize 74% of its budget. The current lag represents a nearly 30% decline in budget execution efficiency, raising concerns about project timelines and farmer benefits.
Major Schemes Stalled: Zero Spending on Key Initiatives
The most alarming aspect of the underspending is the complete lack of expenditure on two high-profile schemes. Not a single rupee has been spent on the establishment of proposed seed parks or the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme.
The Seed Parks Project, envisioned as a cornerstone for self-reliance in high-quality seed production, had an allocation of Rs 251 crore. The plan involves creating five state-of-the-art seed parks across different agro-climatic zones of Uttar Pradesh: the western region, terai, central UP, Bundelkhand, and eastern UP. The first park is proposed in Attari, Lucknow. Developed under a Public-Private Partnership (PPP) model, these parks aim to offer advanced processing, storage, and research facilities to attract private investment, boost farmer income, and create significant employment by linking with local farmers.
Similarly, the PM-KUSUM scheme, with an allocation of Rs 504 crore, has seen no funds released. This central government scheme, adopted by the state, aims to provide energy security to farmers, increase their income, and promote diesel-free farming. It offers subsidies for installing solar agricultural pumps and allows farmers to sell surplus solar electricity back to the grid, contributing to national solar capacity and reducing carbon emissions. The scheme also facilitates financial assistance and bank loans for farmers to adopt solar pumps.
Official Responses and Roadblocks
When questioned about the delays, Principal Secretary (Agriculture) Ravindra stated that proposals for both projects have been finalized and implementation would commence soon. He specifically mentioned that the process to establish the seed parks is in its final stages.
However, sources indicate internal hurdles. The agriculture department had sought to increase the subsidy component for farmers under the PM-KUSUM scheme. A senior official revealed that a proposal to this effect was tabled before the state cabinet, but it was rejected. This could be a contributing factor to the stagnation.
Officials now claim that the department plans to fast-track the necessary inter-departmental clearances while simultaneously enhancing execution capacity at the district level to accelerate spending in the remaining quarter.
Implications and Looking Ahead
The substantial underspending poses a direct risk to the timely achievement of agricultural modernization goals in India's most populous state. Delays in schemes like seed parks and PM-KUSUM not only postpone infrastructure development and private investment but also withhold crucial benefits—affordable irrigation, additional income, and energy independence—from the farming community.
The coming quarter will be a critical test for the department's ability to overcome bureaucratic and procedural hurdles. Effective utilization of the remaining budget is essential to deliver on promises made for farmer welfare, agricultural productivity, and sustainable energy use in Uttar Pradesh's crucial farm sector.
