Daijiworld Media Network - New Delhi
New Delhi, Feb 2: Despite projecting agriculture as the primary engine of economic growth, Union Finance Minister Nirmala Sitharaman has announced only a modest increase in budgetary allocation for the sector in the Union Budget 2026–27, while funds earmarked for agricultural research have seen a decline.
The allocation for the Department of Agriculture and Farmers’ Welfare has been raised to Rs 1,30,661.38 cr for 2026–27, up from Rs 1,27,290 cr in 2025–26. This marks an increase of about 2.56 per cent over the previous year’s Budget Estimates and over 6 per cent compared to last year’s Revised Estimates. However, allocations for agricultural research have been reduced by nearly 5 per cent.
Nearly half of the total allocation will be transferred directly to farmers under the PM-KISAN scheme, which provides annual income support of Rs 6,000 to each eligible farm household.
A major boost has been announced for the Krishonnati scheme, with funding increased by 40 per cent to Rs 11,200 cr from Rs 8,000 cr last year. The umbrella scheme covers 11 initiatives, including missions for fruits and vegetables and village uplift programmes in tribal regions.
The Rashtriya Krishi Vikas Yojana (RKVY) has seen only a marginal increase, with its allocation rising slightly from Rs 8,500 cr in 2025–26 to Rs 8,550 cr in 2026–27.
Natural farming has received renewed attention, with the allocation for the National Mission on Natural Farming (NMNF) increased by over 21 per cent. While the Revised Estimate for the current year stands at Rs 725 cr, the allocation for 2026–27 has been set at Rs 750 cr.
Funding for coconut cultivation has been maintained at Rs 37.16 cr, matching the Revised Estimate for the current year and marginally higher than the Rs 35 cr allocated earlier.
The Finance Minister also announced a new support scheme for high-value crops such as coconut, sandalwood, cocoa and cashew in coastal regions, and almonds, walnuts and pine nuts in hilly areas. The move is aligned with recent free trade agreements with European countries and the UK, and aims to strengthen domestic value chains for crops that India currently imports or exports for processing.
Reacting to the budget, former Agriculture Secretary Siraj Hussain said support for allied sectors like fisheries, animal husbandry, dairy and high-value crops was welcome, but stressed the absence of direct investment in agricultural infrastructure. He noted the need to develop Agricultural Produce Market Committees (APMCs) into world-class facilities.
Meanwhile, the allocation for the Price Stabilisation Fund has been increased by around 4 per cent to Rs 7,200 cr.
The government has also proposed introducing a multilingual AI chatbot that will integrate Agristack portals with Indian Council of Agricultural Research (ICAR) packages on best agricultural practices, leveraging artificial intelligence to provide better support to farmers.