Budget 2026-27 India: Agriculture Allocations Explained — A Detailed FAQ
02 February 2026, New Delhi: When the Union Budget is discussed in the context of agriculture, the focus often narrows to the Ministry of Agriculture and Farmers’ Welfare. However, agriculture in India is governed through a much wider budgetary framework. Crop production, fertilisers, rural livelihoods, livestock, fisheries, land resources and local governance are handled by different ministries, each with its own policy mandate and financial allocation. Budget 2026-27 reflects this multi-ministry structure, making it essential to look beyond a single department to understand how public spending actually supports agriculture and farmers.
Q1. Is agriculture funding in Budget 2026-27 limited to the Ministry of Agriculture and Farmers’ Welfare?
No. Agriculture-related spending in India is spread across multiple ministries, each handling a specific part of the farm and rural economy. While the Ministry of Agriculture and Farmers’ Welfare deals primarily with crops and farmers, fertilisers, rural employment, livestock, fisheries and local governance fall under separate ministries with distinct budget heads.
Q2. How much has been allocated to the Ministry of Agriculture and Farmers’ Welfare in 2026-27?
The Ministry of Agriculture and Farmers’ Welfare has received a total allocation of ₹1.40 lakh crore in Budget 2026-27, compared to ₹1.37 lakh crore in 2025-26. This represents a year-on-year increase of 2.19 percent.
Q3. Which departments function under the Ministry of Agriculture and Farmers’ Welfare?
The ministry functions through two main departments:
- Department of Agriculture and Farmers’ Welfare, which looks after crop production, extension services and farmer-oriented programmes
- Department of Agricultural Research and Education, which oversees agricultural research and education institutions
Q4. What are the allocations for these two agriculture departments?
In Budget 2026-27:
- The Department of Agriculture and Farmers’ Welfare has been allocated ₹1.30 lakh crore, up from ₹1.27 lakh crore last year
- The Department of Agricultural Research and Education has received ₹9.98 thousand crore, compared to ₹10.46 thousand crore in 2025-26
Q5. Which ministry handles fertiliser subsidies and support?
Fertilisers do not fall under the Ministry of Agriculture. They are administered by the Ministry of Chemicals and Fertilisers, reflecting the way agricultural inputs are structured within the Union Government.
Q6. What is the fertiliser allocation in Budget 2026-27?
Under the Ministry of Chemicals and Fertilisers, the Department of Fertilisers has been allocated ₹1.70 lakh crore in Budget 2026-27. This is higher than the ₹1.56 lakh crore allocated in 2025-26, marking a growth of 8.97 percent.
This makes fertiliser support one of the largest single components of agriculture-linked expenditure, even though it sits outside the agriculture ministry.
Q7. What role does the Ministry of Rural Development play in agriculture?
The Ministry of Rural Development supports agriculture indirectly by funding rural employment, livelihoods, infrastructure and land-related programmes that sustain farming communities.
For 2026-27, the ministry has received ₹1.97 lakh crore, compared to ₹1.90 lakh crore in the previous year.
Q8. Which departments come under the Ministry of Rural Development and what are their allocations?
The ministry operates through two departments:
- Department of Rural Development: ₹1.94 lakh crore (up from ₹1.87 lakh crore)
- Department of Land Resources: ₹2.65 thousand crore (unchanged from last year)
Q9. Why are animal husbandry, dairy and fisheries handled separately from agriculture?
Livestock, dairy and fisheries are treated as allied sectors, providing income diversification beyond crops. These are administered by the Ministry of Fisheries, Animal Husbandry and Dairying, separate from crop agriculture.
Q10. What is the allocation for the allied sectors ministry in 2026-27?
The Ministry of Fisheries, Animal Husbandry and Dairying has received ₹8.90 thousand crore in Budget 2026-27, up from ₹7.54 thousand crore in the previous year — a growth of over 18 percent, the highest among agriculture-linked ministries.
Q11. How is this allocation split within the allied sectors ministry?
- Department of Fisheries: ₹2.70 thousand crore (unchanged from last year)
- Department of Animal Husbandry and Dairying: ₹6.15 thousand crore, up from ₹4.84 thousand crore, reflecting a 27.07 percent increase
Q12. What role does the Ministry of Panchayati Raj play in agriculture?
The Ministry of Panchayati Raj supports local self-governments that implement agriculture and rural development schemes at the village level.
The ministry has been allocated ₹1.19 thousand crore in Budget 2026-27, marginally higher than ₹1.18 thousand crore in 2025-26.
Budget 2026-27: Agriculture-Linked Ministries and Allocations
| Ministry / Department | Allocation 2026-27 | Allocation 2025-26 | Growth (%) |
|---|---|---|---|
| Ministry of Agriculture and Farmers’ Welfare (Total) | ₹1.40 lakh crore | ₹1.37 lakh crore | 2.19 |
| └ Department of Agriculture and Farmers’ Welfare | ₹1.30 lakh crore | ₹1.27 lakh crore | 2.36 |
| └ Department of Agricultural Research and Education | ₹9.98 thousand crore | ₹10.46 thousand crore | −4.59 |
| Ministry of Chemicals and Fertilisers | — | — | — |
| └ Department of Fertilisers | ₹1.70 lakh crore | ₹1.56 lakh crore | 8.97 |
| Ministry of Rural Development (Total) | ₹1.97 lakh crore | ₹1.90 lakh crore | 3.68 |
| └ Department of Rural Development | ₹1.94 lakh crore | ₹1.87 lakh crore | 3.74 |
| └ Department of Land Resources | ₹2.65 thousand crore | ₹2.65 thousand crore | 0 |
| Ministry of Fisheries, Animal Husbandry and Dairying (Total) | ₹8.90 thousand crore | ₹7.54 thousand crore | 18.04 |
| └ Department of Fisheries | ₹2.70 thousand crore | ₹2.70 thousand crore | 0 |
| └ Department of Animal Husbandry and Dairying | ₹6.15 thousand crore | ₹4.84 thousand crore | 27.07 |
| Ministry of Panchayati Raj | ₹1.19 thousand crore | ₹1.18 thousand crore | 0.85 |
Key Takeaway
Budget 2026-27 makes it clear that agriculture in India is not governed by a single ministry. Crop farming, fertilisers, rural livelihoods, livestock, fisheries, land management and local governance are funded through different ministries with separate responsibilities and budgets. To understand agriculture spending, one must therefore look beyond the agriculture ministry to the broader budget framework supporting the farm and rural economy.
Also Read: Sahyadri Farms: A Farmer-Led Collective Transforming Indian Agriculture
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