Agriculture in Budget 2026-27
Prof B N Tripathi
vcskuastjammu@gmail.com
The Union Budget is often seen as a snapshot of a Government’s financial priorities for a single year, reflecting expected income and planned expenditure. However, it is important to recognise that a budget is not a rigid or exhaustive document. It does not necessarily include every possible intervention, nor does it remain static through the year, as allocations may be revised, supplemented or curtailed depending on economic conditions and policy needs. In this context, the Union Budget 2026-27, presented on 2 February 2026, has already drawn criticism for not addressing agriculture in a comprehensive and direct manner. While such concerns merit attention, a closer reading suggests that the current budget must be viewed as part of a broader policy continuum, building upon the foundations laid in previous budgets and aligning with the long-term national vision of India @ 2047.
To place this criticism in perspective, it is useful to briefly recall how agriculture has been treated across successive budgets since Independence. In the early decades, budgetary focus was largely on food security, irrigation expansion and price support, reflecting the challenges of shortages and low productivity. The Green Revolution marked a major shift with enhanced public investment in inputs, procurement and institutional credit. In later years, particularly after economic liberalisation, priorities gradually moved towards market reforms, diversification, infrastructure creation and risk management instruments such as crop insurance. Over the last decade, this transition has become more pronounced, with increasing emphasis on income support, technology adoption, value chains and sustainability. Agriculture in the Union Budget has thus continuously evolved in response to changing economic priorities and development goals.
Seen against this historical backdrop, the Budget 2026-27 must be understood as part of this longer policy trajectory rather than as an isolated intervention. While it may not announce large, exclusive farm schemes, it reinforces linkages that have been steadily developed over previous budgets. The total allocation for agriculture and allied sectors has been raised to about Rs 1.63 lakh crore, covering crops, livestock, dairy and fisheries. The emphasis is clearly on productivity enhancement, diversification and value-added activities rather than substantial increases in conventional subsidy spending, signalling a strategic shift in approach.
Technology emerges as a central pillar of this budget’s agricultural vision. The introduction of Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI-based digital platform, aims to integrate data, advisories and decision-support services for farmers. Such an initiative is particularly relevant for smallholders, women and rural youth, enabling access to timely, local-language information and promoting data-driven farming practices. This technological push builds upon earlier investments in digital infrastructure and rural connectivity, reinforcing continuity rather than disruption.
Another significant dimension of the Budget 2026-27 is its strong linkage with women’s empowerment. The proposal to establish Self Help Entrepreneur (SHE) Marts as community-owned retail and enterprise platforms seeks to provide market access to women-led rural enterprises. These initiatives build on the Lakhpati Didi mission and aim to transition rural women from loan-dependent activities to sustainable enterprise ownership. This focus is further strengthened by the Gender Budget, which has been raised to an all-time high of Rs 5.08 lakh crore, underlining the cross-sectoral commitment to women’s welfare.
In addition, the allocation for the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) has been increased by around 20 per cent, providing greater support to women’s self-help groups and livelihood activities. Together, these measures integrate agricultural value chains with women’s entrepreneurship, facilitating skills development, income diversification and improved market participation in rural areas.
Livestock, dairy and fisheries emerge as key engines of rural employment in the current budget. Enhanced allocations for these sectors focus on strengthening value chains and market linkages. The proposal to develop 500 Amrit Sarovars to support fisheries is particularly significant, as it offers productive employment opportunities for rural youth and women while contributing to local resource management. These allied sectors are increasingly recognised for providing year-round income, especially for landless labourers and small households.
The budget also promotes diversification towards high-value crops such as coconut, cashew, cocoa, sandalwood, almonds, walnuts and pine nuts, with an emphasis on value addition, global branding and export competitiveness. Such initiatives are expected to raise farm incomes while creating non-traditional rural jobs. High-value crop clusters, along with agri-processing and logistics, have the potential to absorb educated rural youth beyond conventional field-based agriculture.
Rural development and employment remain closely intertwined with agriculture in the Budget 2026-27. Increased spending on rural infrastructure, roads and development programmes indirectly supports agricultural efficiency and market access. A new rural employment framework replacing MGNREGA has also received substantial allocation, although debates continue regarding its adequacy in addressing rural labour concerns. Nevertheless, the focus on asset creation and productive activities reflects a gradual shift towards sustainable rural livelihoods.
Viewed in isolation, the Budget 2026-27 may appear to underplay agriculture. However, when placed within the broader policy arc of recent years, it becomes evident that agriculture is being addressed through an integrated approach linking farming with technology, women’s empowerment, youth participation and rural enterprise development. This layered strategy reflects an understanding that the future of Indian agriculture lies not merely in higher subsidies or new schemes, but in building resilient systems capable of adapting to economic, climatic and demographic changes.
As India moves towards its centenary year of independence in 2047, such continuity in policy thinking becomes crucial. The current budget should therefore be seen not as a standalone document, but as a connecting link in a longer chain of reforms and investments aimed at transforming agriculture from a subsistence activity into a dynamic, inclusive and sustainable component of the national economy.
(The author is Vice-Chancellor Sher-e-Kashmir University of Agricultural Sciences and Technology of Jammu)
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