Budget 2026-27 India: Agriculture Industry Welcomes Farmer-Centric Push, Flags Need for Stronger R&D and Innovation Support
02 February 2026, New Delhi: The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, outlines the government’s approach to strengthening agriculture through diversification, technology adoption and allied sector growth. The Ministry of Agriculture and Farmers’ Welfare has received an allocation of ₹1.40 lakh crore for 2026-27, compared to ₹1.37 lakh crore in the previous year, signalling continuity in public spending while placing policy emphasis on high-value agriculture, animal husbandry, fisheries and digital advisory systems.
In her budget speech, the Finance Minister highlighted initiatives aimed at increasing farmer incomes through support for high-value crops such as coconut, cashew, cocoa, sandalwood and nuts, along with measures to strengthen fisheries and animal husbandry value chains. A key announcement was the launch of Bharat-VISTAAR, a multilingual, AI-based advisory platform integrating AgriStack portals and ICAR agricultural practices to provide customised, risk-reducing advisories to farmers.
Budget 2026-27: Key Agriculture-Linked Ministries and Allocations
| Ministry / Department | Budget 2026-27 | Budget 2025-26 | Growth (%) |
|---|---|---|---|
| Ministry of Agriculture & Farmers’ Welfare (Total) | ₹1.40 lakh crore | ₹1.37 lakh crore | +2.19 |
| └ Department of Agriculture & Farmers’ Welfare | ₹1.30 lakh crore | ₹1.27 lakh crore | +2.36 |
| └ Department of Agricultural Research & Education | ₹9.98 thousand crore | ₹10.46 thousand crore | −4.59 |
| Ministry of Chemicals & Fertilizers | — | — | — |
| └ Department of Fertilizers | ₹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 & 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 & 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 |
Industry Reaction: Support for Policy Direction, Expectations on Innovation
Industry leaders across crop protection, fertilisers, agri-logistics and allied sectors broadly welcomed the Budget’s farmer-centric and technology-led approach, while also flagging areas where further policy support is needed.
Dhanuka Agritech Limited Chairman M.K. Dhanuka said the government’s focus on modernising Indian agriculture and improving farmer incomes through high-value crops and crop diversification is a positive step. He pointed to region-specific programmes for coconut, sandalwood and nut crops, along with post-harvest processing initiatives, as measures that could help reduce production risks. He also welcomed AI-based platforms such as Bharat-VISTAAR for enabling better field-level decision-making, while noting that the industry had expected stronger support for agri-innovation through enhanced R&D incentives and rationalisation of GST on essential crop-protection products.
From the fertiliser sector, Sanjiv Kanwar, Managing Director of Yara South Asia, said the Budget’s focus on high-value agriculture, productivity and entrepreneurship reflects a practical approach to strengthening India’s agricultural ecosystem. He highlighted the emphasis on small and marginal farmers, rural youth and the North-East, and said technology-led initiatives like Bharat-VISTAAR could help farmers adopt better and more efficient farming practices.
Welcoming the emphasis on AI-led agriculture, Susheel Kumar, Country Head and Managing Director of Syngenta India, said digital advisory initiatives can improve farm-level productivity and resilience. He also welcomed the focus on self-help–led entrepreneurship and rural enterprise development, while noting that measures such as restoration of the 200 percent weighted tax deduction on R&D, a PLI-type incentive scheme and reduction in customs duty on agrochemical exports were expected but not announced.
P.S. Gahlaut, Managing Director of Indian Potash Limited, said increasing crop production would require higher farm mechanisation and adoption of modern techniques. He described Bharat-VISTAAR as a timely initiative to promote precision farming and better resource utilisation. He also welcomed the Credit-Linked Subsidy Programme for the animal husbandry sector, saying integrated livestock value chains could emerge as sustainable rural employment opportunities.
From the agri-logistics perspective, Vinod Kumar, Managing Director and Chief Executive Officer of National Bulk Handling Corporation, described Budget 2026-27 as balanced and forward-looking, with strong emphasis on agri-allied sectors, digitalisation and infrastructure. He said effective implementation would be critical to achieving the outcomes envisioned in the Budget.
Overall, industry feedback suggests strong alignment with the government’s policy thrust on diversification, technology adoption and allied sector development under Budget 2026-27. While initiatives such as Bharat-VISTAAR, support for high-value crops and entrepreneurship in animal husbandry have been widely welcomed, industry leaders have also reiterated the need for deeper support for research, innovation and exports to sustain long-term agricultural growth.
Also Read: Sahyadri Farms: A Farmer-Led Collective Transforming Indian Agriculture
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