Budget 2026: Plantations, fisheries central to farm income strategy

The Budget for agriculture and allied activities was projected to grow by 7.1 per cent in the Budget Estimates of FY27 as against the Revised Estimates of FY26

The focus of the Budget is more on the allied sectors of agriculture rather than core crops, with special emphasis on high-value plantation crops such as coconut, cocoa, cashew, sandalwood, and also fisheries — announcements that have a bearing on the southern states going to the polls. 

Allocation for agriculture and allied activities was projected to grow 7.1 per cent in the Budget estimates of FY27 as against the revised estimates of FY26. This is when overall spending in the sector, according to the revised estimates, dropped 4.4 per cent as compared to the Budget estimates of FY26. 

Commentators said several of the big-ticket announcements minister made in last year’s Budget, such as boosting oilseeds and pulses production, found little mention this time while there was minor tinkering in allocation with no major big-bang announcement for the sector. 

 

“Agriculture has been left dependent on increasing productivity. But a farmer’s income increases not just by increasing production but through fair prices for their crops and the Budget fails to address this vital part,” said Dharmendra Malik, national spokesperson for the Bhartiya Kisan Union (apolitical). 

Meanwhile, the minister proposed initiatives aimed at benefiting farmers by focusing on high-value agriculture, animal husbandry, veterinary professionals, and particularly women-led rural enterprises. 

A scheme for a multilingual artificial-intelligence tool called “Bharat-VISTAAR” was announced with an allocation of ₹150 crore. It will integrate the AgriStack portals with the package of the Indian Council for Agricultural Research on agricultural practices, while the one on high-value agriculture got ₹350 crore. 

She announced plans for an integrated development of 500 reservoirs and amrit sarovars to strengthen the value chain in fisheries in coastal areas and an entrepreneurship development scheme for animal husbandry to create employment. 

“Livestock contributes close to 16 per cent of farm income, including to poor and marginal households. To scale up availability of veterinary professionals by more than 20,000, I propose to roll out a loan-linked capital subsidy support scheme for establishment of veterinary and para-vet colleges, veterinary hospitals, diagnostic laboratories and breeding facilities in the private sector. Collaboration between Indian and foreign institutions will also be facilitated,” Sitharaman said. 

She said to diversify farm output, increase productivity, enhance farmer income and create employment, the government would support high-value crops such as coconut, sandalwood, cocoa and cashew in coastal areas. Agar trees in the Northeast and nuts such as almonds, walnuts and pine nuts in hilly regions too will be supported. 

According to a recent analysis by NITI Aayog Member Ramesh Chand, high-value agriculture products followed higher growth in the period between 2014-15 and 2023-24 over the previous 10 years in comparison to average or low-value products such as cereals, oilseeds, and common vegetables. 

Growth in high-value crops is driven by changing consumer habits. 

The data shows the share of the crop sector in gross value added in agriculture and allied activities between the trienniums ending 2013-14 and 2023-24 at current prices dropped by 9.42 per cent, while that of livestock rose 7.91 per cent, and fishing and aquaculture 2.26 per cent, but forestry and logging dropped 0.76 per cent. 

For southern states, the minister proposed a “coconut promotion” scheme. The crop sustains around 30 million people, including 10 million growers. She laid down a plan to transform Indian cashew and cocoa into premium global brands by 2030. 

There was a proposal to partner state governments to restore the glory of Indian sandalwood. For animal husbandry, the minister announced a credit-linked subsidy programme and scaling-up, and modernisation of livestock enterprises along with the enhancement of value chains in livestock, dairy and poultry, and encouraging the creation of livestock farmer producer organisations. The department of animal husbandry has seen a 16 per cent jump in Budgetary allocation in Fy-27 as per BE as compared to the RE of Fy-26 while that of fisheries has seen a nearly 60 rise in allocation with the same matrix. 

To rejuvenate old, low-yielding orchards and expand the high-density cultivation of walnuts, almonds and pine nuts, the minister announced a dedicated programme to enhance farmer incomes and in bringing value addition by engaging youth. 

Cooperative sector 

Tax deduction for cooperatives supplying cattle feed and cotton seed produced by its members has been extended to those supplying milk, oilseeds, fruits, and vegetables. It also proposed to allow inter-cooperative society dividend as deduction if it is distributed to its members and allowed exemption for three years. The same facility has been given to the dividend received by a notified national cooperative federation on investment made in companies.