- By Deeksha Gour
- Sun, 01 Feb 2026 08:02 PM (IST)
- Source:JND
Budget 2026: Raising farmers’ income remains one of the Centre’s biggest challenges and the Union Budget has placed strong emphasis on agriculture and rural development to address this issue. The government has made it clear that traditional farming alone is not enough and that higher productivity, technology adoption and diversification are key to improving rural earnings.
Presenting the Budget, Union Finance Minister Nirmala Sitharaman said the government aims to create self-reliant and employment-rich villages through targeted spending on agriculture and allied sectors.
Agriculture and Rural Spending Cross Rs 4.35 Lakh Crore
The combined allocation for the Agriculture and Rural Development ministries has crossed Rs 4.35 lakh crore. For 2026–27, Rs 1,62,671 crore has been earmarked for agriculture and allied activities.
The Agriculture Department alone has received Rs 1,40,528.78 crore, including Rs 9,967 crore for agricultural education and research. The focus is on developing new crop varieties, improving farming techniques and promoting climate-resilient agriculture.
Although the allocation is around Rs 9,000 crore lower than last year, the government says the emphasis is on improving farm quality, reducing risks and creating additional income sources.
Push for Rural Economy and Allied Activities
Rural development has received Rs 2,73,108 crore, about 21 per cent higher than last year. The aim is to make villages centres of economic activity rather than just agricultural hubs.
Farmers are being encouraged to take up animal husbandry, fisheries, horticulture and value-added farming. To support fisheries, the government has announced the development of 500 reservoirs and Amrit Sarovars, which is expected to boost fish production, create jobs and link women’s groups to markets.
Fertiliser Subsidy and Crop Diversification
To reduce input costs, the Budget has provided Rs 1,70,944 crore as subsidy on fertilisers and manure. The government says affordable fertilisers will directly benefit farmers by lowering production expenses.
There is also a clear push towards high-value crops such as coconut, cashew, cocoa, sandalwood, almonds and walnuts.
Coconut, Cashew and Cocoa Get Special Attention
A dedicated scheme will be launched to revive ageing and low-yield coconut plantations. Coastal regions will see increased focus on coconut and cashew cultivation.
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The government aims to position Indian cashews and cocoa as premium global brands by 2030 through better processing, branding and value addition, helping farmers earn higher prices.
Employment and Panchayat Funding
The Budget has also strengthened rural employment through the Vikasit Bharat Ji-Ramji Yojana, which replaces MNREGA. The Centre has allocated Rs 95,600 crore, which will rise to over Rs 1.51 lakh crore with state contributions.
In addition, panchayats will receive over Rs 55,900 crore based on the 16th Finance Commission recommendations, boosting local infrastructure such as roads, water supply and ponds.