Budget 2026: Experts Outline Key Agri Priorities for Long-Term Resilience
Experts say the upcoming Budget 2026 offers a significant opportunity to strengthen long-term resilience through specific initiatives in the agriculture sector. They emphasize that the focus should move beyond mere allocations to quality and impact.
Consistent Growth in Agri Allocations
Reports indicate that allocations for agriculture have seen a steady rise over the years. Funding increased from ₹21,933 crore in the financial year 2013-14 to over ₹1.27 lakh crore at present. This upward trend reflects the government's ongoing commitment to the sector.
Key Priorities and Demands
Industry experts identify several critical areas for attention. Key priorities include promoting sustainability, building robust digital infrastructure, and boosting shrimp exports. There are also strong demands for reforming subsidies to improve their efficiency and effectiveness.
Enhancing allied sectors like livestock, fisheries, and horticulture is seen as crucial. Expanding cold-chain networks and processing infrastructure can substantially elevate farmer earnings, according to analysts.
Market Perspective: A Shift in Focus
Harshal Dasani, Business Head at INVasset PMS, explains the changing market view. He states that the focus is shifting from headline budget numbers to the quality of balance sheets and earnings visibility across the entire agricultural value chain.
Dasani notes that investors are likely to monitor companies involved in fertilizers, agro-chemicals, farm mechanization, irrigation equipment, and agri-logistics. Demand in these areas is increasingly driven by structural factors like higher cropping intensity, precision farming, and the normalization of rural incomes.
A steady monsoon outlook and improving rural credit flow provide additional support. Dasani believes the budget is less about short-term sentiment and more about reinforcing a multi-year transition from subsidy-led support to productivity-led agricultural growth.
Budget 2026: Four Key Things to Watch
Agri-Spending Expectations
Abhinav Tiwari, Research Analyst at Bonanza, expects the Union Budget 2026-27 to prioritize the agriculture segment. This comes amid ongoing challenges like climate variability, high input costs, and market access issues. With agriculture contributing around 18-20% to India's GDP, the government aims to boost productivity, sustainability, and farmer incomes through focused allocations and reforms.
"We anticipate an increase in the agriculture budget from ₹1.37 lakh crore in 2025-26 to around ₹1.5 lakh crore," said Tiwari. "This could include higher funding for schemes like PM-KISAN, Pradhan Mantri Fasal Bima Yojana, and irrigation schemes under PM Krishi Sinchayee Yojana."
Kavach 4.0 Rollout
Abhinav Tiwari also believes this budget is expected to rollout Kavach 4.0, an advanced automatic train protection system, along with the electrification of remaining routes. The sector is moving toward increasing the rail model share in freight from 26% to 45% by 2030.
New Seeds Bill
According to the Agriculture Minister's announcement, the government intends to present a new seeds bill during the budget session. This legislation will tackle the rampant sale of counterfeit and low-quality seeds. It proposes severe penalties, including fines of up to ₹30 lakh and imprisonment for a maximum of three years.
The bill's objective is to guarantee seed quality, safeguard farmers against losses, and enhance overall agricultural productivity. Tiwari notes that the bill may benefit seed and fertilizer companies. In the seed sector, firms like Kaveri Seeds, Mangalam Seeds, and Bombay Super Hybrid Seeds could gain.
For fertilizer companies, UPL Ltd, PI Industries Ltd, Sumitomo Chemical India, Bayer CropScience Ltd, and Dhanuka Agritech Ltd are expected to benefit.
Agri and Food Exports Focus
India’s agri and food exports stand at approximately USD 50–55 billion annually. However, global trade disruptions and tariff-related barriers have emerged as near-term challenges. According to Tushar Badjate, Director of Badjate Stock & Shares Pvt Ltd, Budget 2026 is expected to focus on export facilitation, faster approvals, and support for value-added agri products.
This support would help farmers and agri companies gain better access to global markets despite ongoing tariff pressures. Badjate highlights encouraging improvements in India’s logistics ecosystem. Logistics costs have declined to about 13–14% of GDP, cold-chain capacity has expanded, and rural connectivity has strengthened.
These improvements are reducing post-harvest losses and improving price discovery. "From an equity perspective, a policy tilt towards crop protection, specialty chemicals, and nutrient efficiency would be supportive for companies such as UPL and PI Industries, which are integrated with global supply chains," said Badjate. "Integrated agri-input players like Coromandel International and Rallis India also stand to benefit from a continued focus on efficiency-led growth."
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
