Understanding Budget 2026-27 Allocations for Agriculture in India
02 February 2026, New Delhi: When India’s Union Budget is discussed in the context of agriculture, public attention usually narrows down to the Ministry of Agriculture and Farmers’ Welfare. However, agriculture as an economic activity and a livelihood system extends far beyond a single ministry. In Budget 2026-27, multiple ministries and departments collectively shape farm production, input availability, rural livelihoods and allied activities such as livestock, dairy and fisheries.
While agriculture, rural development and farmers’ welfare are often discussed together, they have distinct budget heads with separate ministries, policy orientations and financial frameworks. For this explainer, the Ministry of Food Processing Industries has been kept out, as its interventions largely begin post farm-gate and focus on downstream value addition rather than on-farm agricultural practices.
A closer look at Budget 2026-27 shows that agriculture-linked expenditure is spread across at least five key ministries, each addressing a different layer of the farm and rural economy.
Budget 2026-27: 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 & 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 & 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 |
Ministry of Agriculture and Farmers’ Welfare
This is the core ministry associated with farming and crop production. For 2026-27, the ministry has received a total allocation of ₹1.40 lakh crore, marginally higher than ₹1.37 lakh crore in the previous year.
The ministry operates through two main departments. The Department of Agriculture and Farmers’ Welfare, which handles crop production, extension and farmer-centric programmes, has been allocated ₹1.30 lakh crore, up from ₹1.27 lakh crore last year. The Department of Agricultural Research and Education, responsible for agricultural research and education, has received ₹9.98 thousand crore, lower than ₹10.46 thousand crore in 2025-26.
Ministry of Chemicals and Fertilisers
Fertilisers, a critical farm input, do not fall under the agriculture ministry. They are handled by the Department of Fertilisers under the Ministry of Chemicals and Fertilisers.
In Budget 2026-27, the Department of Fertilizers has been allocated ₹1.70 lakh crore, compared to ₹1.56 lakh crore in the previous year. This nearly nine percent increase underlines the continued fiscal importance of fertilizer support in India’s agricultural system.
Ministry of Rural Development
Rural livelihoods, wage employment and village-level infrastructure form the backbone of the agrarian economy, but they are administered separately from agriculture.
The Ministry of Rural Development has received ₹1.97 lakh crore in 2026-27, up from ₹1.90 lakh crore last year. The Department of Rural Development accounts for most of this allocation at ₹1.94 lakh crore, while the Department of Land Resources has retained an unchanged allocation of ₹2.65 thousand crore.
Ministry of Fisheries, Animal Husbandry and Dairying
Allied activities such as livestock, dairy and fisheries, which are increasingly important for diversifying farmer incomes, fall under a separate ministry.
For 2026-27, this ministry has received ₹8.90 thousand crore, compared to ₹7.54 thousand crore in 2025-26. Within this, the Department of Fisheries has an unchanged allocation of ₹2.70 thousand crore, while the Department of Animal Husbandry and Dairying has seen a significant rise to ₹6.15 thousand crore from ₹4.84 thousand crore last year.
Ministry of Panchayati Raj
Local governance institutions play a key role in implementing agriculture and rural schemes at the grassroots level. The Ministry of Panchayati Raj has been allocated ₹1.19 thousand crore in 2026-27, marginally higher than ₹1.18 thousand crore in the previous year.
Why This Matters
Budget 2026-27 makes it clear that agriculture in India is not governed by a single ministry or a single set of programmes. Crop production, farm research, fertilizers, rural employment, land management, livestock, fisheries and local governance are handled by different ministries, each with its own budget priorities.
Understanding agriculture through this wider lens helps explain why changes in farmer incomes, input availability or rural livelihoods cannot be attributed to one ministry alone. Instead, they are shaped by how multiple ministries align their policies and spending across the farm and rural economy.
Also Read: Sahyadri Farms: A Farmer-Led Collective Transforming Indian Agriculture
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