By- Prof. Ghanshyam Pandey
During the presentation of the Union Budget 2026–27 on February 1 in Parliament, Finance Minister Nirmala Sitharaman conveyed a clear message: agriculture and allied sectors are central to India’s growth and rural prosperity narrative. With around 46 percent of the workforce reliant on agriculture, the government reiterated its goal to foster growth, resilience, and increased incomes in rural areas.
Overall Budget Snapshot — Agriculture & Allied Sectors
| Sector | Allocation/Budget Focus | Key Policy Emphasis |
| Total Agriculture & Allied Allocation | ₹1.62 lakh crore (up ≈ 7 %) | Shift to productivity, value chains, climate resilience |
| Livestock & Animal Husbandry | ₹6,153.46 crore (≈ 16 % rise) | Veterinary expansion, entrepreneurship |
| Fisheries & Water-Body Development | Integrated development of 500 reservoirs | Strengthen inland fisheries value chains |
| High-Value Agriculture | Dedicated support (coconut, cashew, cocoa) | Diversification and export competitiveness |
| Rural Roads & Infrastructure | Continued expansion under PMGSY Ph-V | Connectivity to markets and reduced post-harvest losses |
| Kisan Credit Card (KCC) | Loan limit raised from ₹3 lakh ➝₹5 lakh | Greater financial access for farmers and dairy producers |
Sources: Ministry reports & Budget 2025–26 summaries
Broad Strategic Direction
The Budget presents agriculture as an integral aspect of India’s economic development, rather than a philanthropic spending item. Farm production, value creation, resilience to climate change, and the establishment of rural businesses are all aimed at achieving this stated goal. The bigger change is the reallocation of funding, which has shifted from price support and welfare to markets, technology, and related sectors, even though overall allocations increased by almost 7% to approximately ₹1.62 lakh crore.
Major Announcements for Farmers
Major programs promoting crop diversification and self-sufficiency are launched in the Budget to promote Aatmanirbharta in agriculture. Tur, urad, and masoor will be the focal points of the Aatmanirbharta Mission for Pulses, which aims to boost domestic production and procurement systems while decreasing reliance on imports. This is in addition to the newly announced Vegetable and Fruit Support Programme, which will help farmers gain access to better processing capacity and higher prices for their produce. The loan ceiling for the Kisan Credit Card (KCC) has been increased from ₹3 lakh to ₹5 lakh under the Modified Interest Subvention Scheme, which is a big help to the agricultural and allied sector finance. This means that almost 7.7 crore farmers, fishers, and dairy owners now have easier and more inexpensive access to loans.
Livestock, Dairy & Poultry
Recognizing cattle and related activities as important drivers of rural income growth is one of the most noteworthy changes in the budget. The animal husbandry and dairying budget has been increased by around 16% year-on-year, reaching ₹6,153.46 crore. To further improve animal health and productivity infrastructure, the government has also suggested a loan-linked capital subsidy program to support veterinary schools, hospitals, breeding centers, and diagnostic labs, with the goal of increasing the number of veterinarians employed by more than 20,000 people. The promotion of modern livestock operations, dairy units, poultry farms, and integrated value chains will also be supported through credit-linked subsidies through an Integrated Scheme for Entrepreneurship Development that is worth ₹500 crore. Farmers can anticipate lower expenses and improved returns thanks to tax advantages given to primary cooperatives that produce livestock feed. These benefits cover more than 102 lakh metric tonnes per annum. The overarching goal of these policies is to increase animal output while simultaneously creating many new jobs in rural and peri-urban regions.
Fisheries & Water-Body Development
In order to advance fish farming, fortify value chains, and enhance rural livelihoods, the budget suggests building 500 reservoirs and Amrit Sarovars, acknowledging inland fisheries as a potential growth engine. Together with this push for infrastructure, the budget highlights the importance of start-ups, women-led businesses, and Fish Farmer Producer Organizations as means to strengthen relations to the market and increase income opportunities, value addition, and productivity in the fisheries industry.
High-Value & Climate-Smart Agriculture
Diversifying crops and increasing their value through targeted programs are priorities in the budget. Reviving aged plantations and bolstering processing and marketing capacities are the goals of the Coconut Promotion Scheme, which is set to help almost 30 million people. Cashew, cocoa, and sandalwood-specific programs also aim to build premium export value chains by 2030. Taken as a whole, these programs represent a change in focus from cereals to high-value crops, which might greatly increase farm incomes and profitability.
What This Means for Farmers and Rural India
A departure from social payments and an increase in structural investments to boost productivity, market access, and climate resilience are the hallmarks of the new agriculture strategy, as outlined in the Budget. It diversifies farmers’ income streams away from crops by bolstering livestock, poultry, and fisheries. It is believed that post-harvest losses will be reduced and producers’ price realization will be improved through the focus on value-chain development, food processing, and market connections. Concurrently, there will be a significant increase in employment opportunities due to the growth of veterinary services, rural businesses, and related agri-startups, further solidifying agriculture’s position as a catalyst for inclusive development in rural areas.
Conclusion
The Budget 2026–27 is a crucial turning point for India’s agricultural sector. Communities dependent on agriculture are entering a new era of prosperity as a result of policy shifts that prioritize productivity, diversification, allied sectors, technology, and value chains. Implementation will be the true test, particularly in areas like value addition systems, market integration, veterinary education, and rural financing delivery. Incomes on farms, jobs in rural areas, and sustainability in the long run might all benefit greatly from these budget changes if they are put into action.
