03 February,2026 06:37 PM IST | New Delhi | mid-day online correspondent
Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on February 1. FILE PIC
Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on February 1, placing emphasis on diversification, technology adoption, and allied sectors as key drivers to improve farmers' incomes, particularly for small and marginal cultivators.
In her budget speech, Sitharaman framed agriculture within the broader vision of Viksit Bharat, highlighting productivity enhancement, entrepreneurship, and non-crop income avenues as central to making farming more resilient amid climate and global supply chain challenges.
High-value agriculture push
To promote diversification and raise farm incomes, the budget proposes support for high-value crops tailored to regional strengths. These include coconut, sandalwood, cocoa and cashew in coastal regions; agarwood in the North-East; and nuts such as almonds, walnuts and pine nuts in hilly areas. A dedicated Coconut Promotion Scheme has been announced to replace ageing plantations with high-yielding varieties.
Animal husbandry as income support
Animal husbandry, which contributes nearly 16 per cent to farm incomes - especially among small and marginal households - received a significant push. The government announced a credit-linked subsidy programme, modernisation of livestock enterprises, development of integrated value chains for dairy, poultry and livestock, and support for livestock farmer producer organisations to generate quality rural employment.
Fisheries and reservoir development
The budget also announced integrated development of 500 reservoirs and Amrit Sarovars, alongside measures to strengthen fisheries value chains in coastal regions. Market linkages involving startups, women-led groups and Fish Farmers Producer Organisations will be promoted.
Tech-enabled advisory service
A major technology intervention announced was Bharat VISTAAR, a proposed multilingual AI-based platform integrating AgriStack portals and ICAR practices. The platform aims to provide customised advisories on crop planning, weather alerts, pest management and market intelligence in regional languages to help farmers reduce risks and improve decision-making.
Allocations and key omissions
The budget allocates around Rs 1.30 lakh crore to the Ministry of Agriculture and Farmers Welfare, with allied sectors pushing the overall outlay higher. PM-KISAN allocation remains unchanged at Rs 63,500 crore, with no increase in direct income support announced. Fertiliser subsidies will continue to ensure affordability, but the budget made no announcements on a legal guarantee for MSP, enhancement of PM-KISAN assistance or farm loan waivers.
