As the Union Budget 2026–27 draws near, key policy think tanks and industry experts are calling for stronger support to India’s agriculture sector, with a particular emphasis on improving access to agri-finance, boosting food security and building climate-resilient supply chains - priorities highlighted in an analysis by EY India.
In its pre-Budget insights, EY India stresses that while India has made strides in strengthening food security through policies such as the National Food Security Act, PM POSHAN, and Antyodaya Anna Yojana, persistent challenges remain. Climate risks, dependence on imports - especially edible oils - and persistent malnutrition among children continue to expose structural vulnerabilities in the agriculture system.
A major focus of Budget 2026, according to the firm, should be enhancing farmers’ access to credit and finance. Given that a stable credit environment enables investment in inputs, technology and productivity enhancements, experts argue that targeted financial support could drive resilience in the agricultural economy. This comes at a time when agricultural credit has been rising, with projections suggesting that credit disbursed to the sector could exceed Rs 32 lakh crore in FY26, reflecting ongoing demand from farmers and rural enterprises.
The EY analysis also highlights the need to strengthen domestic production of edible oilseeds and pulses. Missions such as the National Mission on Edible Oils–Oilseeds (NMEO) and the Aatmanirbharta in Pulses Mission are crucial, given India’s large import share of edible oils and the importance of pulses in nutrition security. Budget support for certified seeds, procurement incentives, and expanded marketing linkages - especially for millets - could drive diversification and increase farmer incomes.
Infrastructural bottlenecks remain another priority. With significant post-harvest wastage in perishables due to gaps in cold storage, warehousing and logistics, the upcoming Budget is expected to accelerate investment in modern supply-chain infrastructure. Enhancements to the Price Stabilization Fund and strengthening digital supply-chain management are also seen as necessary to reduce food loss and ensure affordability.
Climate-smart agriculture and digital initiatives are additional areas for support. Since much of India’s oilseed and pulse cultivation is rain-fed, the EY report recommends scaling micro-irrigation, soil health programs, drought-tolerant seeds and advisory services integrated with satellite-based monitoring to improve resilience.
EY India’s expectations underscore that the Union Budget 2026 presents an opportunity to shift from traditional food distribution models to a holistic system that builds access, resilience, nutrition and prosperity across the agriculture value chain.