Union Budget 2026–27 Pivots Agriculture Policy Towards High-Value Crops, Livestock and Technology
The Union Budget 2026–27 marks a shift in India’s agriculture policy, with the Centre prioritising high-value commodity value chains, allied sectors such as livestock and fisheries, and technology-led growth. While overall allocations for agriculture have increased, direct income support and MSP-linked spending remain largely unchanged, indicating a move towards investment-driven development.
Budget Allocation and Policy Direction
The total allocation for agriculture and allied activities has risen in the 2026–27 Budget compared to the revised estimates of the previous year. Government officials have stated that the focus is on productivity, infrastructure creation, and value addition rather than expanding consumption-based subsidies. Core schemes related to insurance, irrigation, and interest subvention continue with similar funding levels, reflecting continuity rather than expansion in these areas.
A key feature of the Budget is its focus on specific high-value commodity value chains. The government has identified crops such as coconut, cashew, cocoa, and sandalwood for targeted support due to their income and export potential. High-density cultivation of almonds, walnuts, and pine nuts has also been proposed, particularly for regions suitable for such crops. Officials have said that Indian cashew and cocoa are being positioned for development as global brands by 2030.
Coconut farmers are expected to receive support through replantation programmes and advisory services aimed at improving productivity and addressing ageing plantations. These measures build on earlier efforts that expanded horticulture production, which has now surpassed food grain output in the country.
Livestock and Fisheries as Growth Drivers
The Budget places strong emphasis on livestock and fisheries, recognising their growing contribution to rural incomes. Integrated livestock value chain promotion programmes have been proposed, along with support for fisheries-related infrastructure. The plan includes linking these sectors with Farmer Producer Organisations to improve aggregation, processing, and market access.
The Amrit Sarovar initiative has been expanded with around 500 reservoirs proposed to support fisheries and livestock-based livelihoods. Officials have said this approach aims to strengthen decentralised production systems and create employment opportunities in rural areas.
Technology adoption forms a central pillar of the new agricultural strategy. The government has proposed an AI-integrated agri-stack to provide customised crop advisory services to farmers. This system is expected to link digital farmer records with data on weather, soil, and crops to support decision-making at the field level.
A new digital initiative, Bharat-VISTAAR, has been launched to improve access to agricultural resources through virtual integration. The scheme aims to deliver advisory services and information in multiple languages, especially for small and marginal farmers.
Direct Support Schemes Remain Steady
Despite the new initiatives, direct income support under the Pradhan Mantri Kisan Samman Nidhi remains unchanged at its existing level. Similarly, allocations under the Pradhan Mantri Annadata Aay Sanrakshan Yojana, which provides price support for pulses, oilseeds, and copra, have seen only a modest increase.
Support for the formation and promotion of 10,000 Farmer Producer Organisations continues with a similar outlay as previous years. The Agri Infrastructure Fund has also been maintained, indicating sustained but not expanded investment in post-harvest and logistics infrastructure.
Some of the most notable increases are seen in technology-driven schemes. Funding for innovation and adoption of technology has been raised, and the NAMO Drone Didi scheme has seen a substantial jump in allocation. These measures are intended to promote precision farming, improve efficiency, and expand the role of women in agricultural technology use.
The Rashtriya Krishi Vikas Yojana has received a higher allocation, with an emphasis on micro-irrigation, farm mechanisation, and decentralised infrastructure. The Krishionnati Yojana, which includes horticulture and agricultural mechanisation missions, has also seen a significant rise in funding.
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