Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27 on Sunday, said that increasing farmers’ productivity and income remains one of the government’s key duties under the principle of “Sabka Saath, Sabka Vikas.” However, compared to previous years, agriculture and farmers have received relatively less priority in this year’s Budget.
Although the Finance Minister announced several measures to promote high-value crops, fisheries, animal husbandry, artificial intelligence, and the cooperative sector, the Budget does not present any comprehensive strategy or clear roadmap to address the deeper challenges facing Indian agriculture.
Emphasis on Animal Husbandry
The livestock sector contributes nearly 16 percent to farmers’ income. To strengthen this sector, a credit-linked subsidy scheme will be launched, which is expected to help ensure the availability of more than 20,000 veterinary professionals across the country.
Loan-based capital subsidies will be provided for setting up veterinary and para-vet colleges, hospitals, diagnostic laboratories, and breeding centers in the private sector. Collaboration between Indian and foreign institutions will also be encouraged.
To promote entrepreneurship in the livestock sector, animal husbandry, dairy, and poultry-based enterprises and value chains will be modernized and expanded. The formation of Livestock Farmer Producer Organizations (FPOs) will also be encouraged.
Support to Fisheries
For fisheries development, the Budget has announced the development of 500 reservoirs and Amrit Sarovars. In coastal areas, the fisheries value chain will be linked to markets through start-ups, women’s groups, and Fish Farmer Producer Organizations (FPOs).
Fishing by Indian vessels in the Exclusive Economic Zone (EEZ) and on the high seas will be exempt from duties. Fish landed at foreign ports will be treated as exports, creating new opportunities for Indian fishermen.
Push for High-Value Agricultural Produce
To diversify agricultural production and raise farmers’ incomes, high-value crops such as coconut, sandalwood, cocoa, and cashew will be promoted in coastal regions. Agar trees in the Northeast and crops such as almonds, walnuts, and pine nuts in hilly areas will also receive support.
A Coconut Promotion Scheme will be launched under which old and low-yielding trees will be replaced with new high-yielding varieties. This initiative is expected to benefit nearly 10 million farmers.
A separate program will be introduced for cashew and cocoa to make India self-reliant in their production and to establish Indian cashew and cocoa as global brands by 2030.
To promote sandalwood plantation and processing, the central government will work with state governments to restore the prestige of Indian sandalwood.
A dedicated program will be launched to rejuvenate old, low-yielding orchards of walnuts, almonds, and chilgoza (pine nuts) and to expand high-density cultivation.
AI in Agriculture: Bharat-Vistaar
One of the key digital initiatives announced in the Budget is Bharat-Vistaar (Virtually Integrated System to Access Agricultural Resources). This multilingual AI-based tool will integrate the AgriStack portal and the Indian Council of Agricultural Research (ICAR) agricultural practice packages with artificial intelligence systems.
Through Bharat-Vistaar, farmers will receive customized agricultural advisories based on their needs. This will help them make better decisions and boost farm productivity.
SHE-Mart for Rural Women Enterprises
Building on the success of the Lakhpati Didi program, the Finance Minister announced the launch of Self-Help Entrepreneur (SHE) Marts. These will be community-owned retail outlets aimed at enabling rural women to become enterprise owners.
Mahatma Gandhi Gram Swaraj Initiative
To strengthen khadi, handloom, and handicrafts, the Budget announced the launch of the Mahatma Gandhi Gram Swaraj Initiative. This initiative will promote global market linkages and branding and is intended to benefit weavers, village industries, the One District–One Product (ODOP) scheme, and rural youth.
Tax Incentives For Cooperative Sector
The Budget has expanded tax incentives for cooperative societies. At present, tax deductions are allowed for primary cooperative societies engaged in supplying milk, oilseeds, fruits, or vegetables produced by their members. The government has now proposed to extend this deduction to also include the supply of cattle feed and cotton seed produced by their members.
Under the new tax regime, inter-cooperative society dividend income will be allowed as a deduction to the extent that it is further distributed among members.
In addition, the government has proposed to grant a three-year tax exemption on dividend income received by a notified National Cooperative Federation from investments made in companies up to January 31, 2026. This exemption will apply only to dividends that are further distributed to its member cooperatives.