As India faces a below-normal monsoon forecast for 2026, improved irrigation, resilient seeds and policy support have strengthened farm output, though regional risks and inflation concerns persist
Rising fertiliser subsidy exposes distortions in urea pricing, fuelling overuse and fiscal strain, highlighting need for direct farmer support and subsidy reform
Economist Ashok Gulati of the Indian Council for Research on International Economic Relations (Icrier) said government spending on agriculture R&D is "not even peanuts" by global standards
Though some reports claim that authorities have started exploring alternative routes to quickly ship farm goods bound for West Asia, if the crisis continues, the losses could be substantial
AgriStack, pitched as the "next UPI", could transform farm subsidies, tenant inclusion and soil health - but only if farmer, land and crop data are accurate and trusted
Despite new policy support and AI-led productivity tools, India's agriculture still faces structural challenges as its GVA share in GDP continues to fluctuate
Linking urea sales to digital farmer IDs could curb leakages and fiscal waste-but only a phased, inclusive rollout can protect farmers and revive soil health
The past decade has seen farmers slowly but steadily expand acreage under more lucrative fruits and vegetables, signalling a gradual diversification away from cereal crops
The nominal growth rate of GVA of agriculture and allied activities is projected at a record low of just 0.8 per cent in FY26, down from 10.4 per cent in the last financial year
Agriculture was expected to do well and growth at 3.5 per cent is supported by a good kharif harvest expected, which will reflect more in Q3, said Madan Sabnavis
Agriculture GVA grew 3.7% in Q1 FY26 from 1.5% a year ago, with surplus rains and higher kharif sowing expected to drive stronger growth in coming quarters
Among the commodities under discussion - especially after the US imposed tariffs on China - is soybean oil, with hopes of increased imports from the US
