Union Budget 2026: A Deep Dive into Agricultural Priorities from Coconut to Chocolate
Finance Minister Nirmala Sitharaman's Union Budget 2026-27 has placed a robust emphasis on transforming India's agricultural landscape, with a particular focus on high-value crops and allied sectors. This strategic move aims to address the critical role of farming, which directly employs approximately 55-56% of the workforce and contributes about 18-19% to the Gross Value Added (GVA) in recent years. The budget proposals are designed to boost farmer incomes, create rural employment opportunities, and modernize agricultural practices through targeted interventions.
High-Value Crops Take Center Stage
In her budget speech, Sitharaman stressed the importance of diversifying farm output to enhance farmer incomes. The government will support high-value crops such as coconut, sandalwood, cocoa, and cashew in coastal regions, agarwood in the North East, and nuts including walnuts, almonds, and pine nuts. Dedicated programmes will focus on rejuvenating old orchards, expanding high-density cultivation, and promoting value addition by engaging rural youth in these initiatives.
Coconut Promotion Scheme Unveiled
As the world's largest producer of coconuts, India will see a new coconut promotion scheme aimed at boosting productivity. This includes measures like replacing non-productive trees with improved varieties in major coconut-growing states. With around 30 million people, including nearly 10 million farmers, depending on coconut cultivation for their livelihoods, this scheme is expected to have a significant impact on rural economies.
Boosting Indian Cashews and Cocoa
The budget proposes a dedicated programme for Indian cashew and cocoa to make the country self-reliant in raw material production and processing. The goal is to transform Indian cashew and cocoa into premium global brands by 2030, leveraging India's agricultural strengths to compete on the international stage.
Sandalwood Cultivation Gets Focused Support
Sandalwood cultivation will receive focused support through partnerships with state governments to promote scientific farming and post-harvest processing. This initiative aims to restore the traditional Indian sandalwood ecosystem, which has historical and economic significance.
Fisheries and Animal Husbandry Initiatives
With respect to fisheries, the government has proposed initiatives for the integrated development of 500 reservoirs and other water bodies to strengthen the fisheries value chain. The focus will be on improving market linkages and supporting startups, women-led groups, and fish farmer producer organisations. For animal husbandry, a credit-linked subsidy programme will be introduced to promote entrepreneurship, modernise livestock enterprises, and scale up integrated value chains across dairy, poultry, and livestock sectors.
AI Support for Farmers with Bharat Vistar
The budget also proposes the launch of Bharat Vistar, a multilingual AI tool that will integrate AgriStack portals and the Indian Council of Agricultural Research's package of agricultural practices with artificial intelligence systems. This platform is expected to help farmers make better, data-driven decisions and improve overall farm productivity, marking a significant step towards technology-led farming in India.
