Union Budget 2026-27: Potential Gamechangers for Agriculture and 6 Key Farmer Expectations

The Union Budget for the fiscal year 2026-27 will be presented by Finance Minister Nirmala Sitharaman on 1st February 2026. This year, the budget is expected to focus on boosting domestic consumption, encouraging private investment, and creating new employment opportunities, while maintaining fiscal prudence.

According to economists, the upcoming budget may prioritize decisive reforms to stimulate consumption and jobs, tax policy changes, and incentives to attract fresh investment. Other key measures under consideration include income tax relief, reductions in customs duties, support for exports, targeted investments in skill development, and initiatives to enhance agricultural productivity. Employment generation continues to remain a core priority for the government.

Investment with a Focus on Effective Utilization:

As the Union Budget 2026-27 approaches, discussions are not just about how much is allocated to various sectors, but how effectively these allocations are utilized. Last year, the government emphasized Digital Public Infrastructure (DPI) and climate-resilient crop varieties.
However, with global supply chains rapidly evolving and climate uncertainty increasing, challenges for India’s over 120 million farmers are becoming more significant.

What Has Worked:

The release of over 100 climate-resilient crop varieties has provided much-needed relief to farmers. Expanding the Kisan Credit Card (KCC) limits has improved financial access for farmers.

Gaps and Challenges:

Import dependence in oilseeds continues to be a major economic challenge. In logistics and supply chains, there is still a need to accelerate the transition from “sanctioned funds” to “on-ground infrastructure”, ensuring direct benefits reach farmers.

Key Focus Areas for 2026:

1. Rationalizing Input Costs: Experts suggest that applying a uniform 5% GST on pesticides and agricultural machinery could significantly reduce production costs for farmers.
2. Scaling Technology: Technology should move beyond pilot projects. The 2026 budget may focus on nationwide implementation of “Drone-as-a-Service” and AI-driven precision farming, enabling modern, efficient farming practices.
3. Value Addition and Export Focus: Policies may shift from merely increasing production to enhancing value addition, global competitiveness, and food processing, positioning Indian agriculture as a technology-driven, finance-integrated, and sustainability-oriented ecosystem rather than a traditional primary sector.

6 Key Farmer Expectations from the 2026-27 Budget:

1. Strengthening Farmer Income and Livelihood: Policies and budgetary allocations that increase farmers’ earnings, reduce risks, and ensure more secure livelihoods.
2. Financial Support and Easier Credit Access: Expansion of affordable agricultural loans, Strengthening the KCC system, Improving credit access for small and marginal farmers, especially women
3. Technology and Digital Integration: Increased investment in R&D and adoption of digital solutions such as- Agri-drones, IoT sensors, AI-based analytics These measures aim to improve productivity and efficiency in farming.
4. Boosting Post-Harvest Infrastructure: Greater support for: Cold chains, Modern warehouses and packhouses, Rural logistics, post-harvest facilities These initiatives can help reduce crop losses and improve market access.
5. Crop Diversification and Nutrition Security: Encouraging high-value crops like pulses, oilseeds, fruits, and vegetables can: Improve self-sufficiency, Enhance nutritional outcomes, Provide better prices for farmers.
6. Climate-Resilient and Climate-Smart Agriculture: The budget may promote a comprehensive climate-smart agriculture policy, including: Incentives for agroforestry, Soil and water conservation initiatives, Adoption of drought-tolerant seeds.

FAQs: Union Budget 2026–27 & Agriculture:

Q1. When will the Union Budget 2026–27 be presented?
It will be presented on 1 February 2026 by Finance Minister Nirmala Sitharaman.

Q2. What are farmers expecting from Budget 2026–27?
Farmers expect lower input costs, better credit access, climate-resilient farming support, and improved market infrastructure.

Q3. Will agriculture technology get support in Budget 2026–27?
Yes, the budget may support agri-drones, AI-based farming, and digital platforms for precision agriculture.

Q4. How can Budget 2026–27 help reduce crop losses?
By investing in cold storage, warehouses, rural logistics, and post-harvest infrastructure.

Q5. How does Khetivyapar support farmers?
Khetivyapar helps farmers with market access, price transparency, and digital integration, aligning with the budget’s vision of a modern agri-ecosystem.